Martin Huseby Karlsen
EUR 405.70 For Business Accounts Only

Odfjell Drilling (Buy, TP: NOK40.00) - Harsh play at a relative discount

Following the recent sell-off, we consider Odfjell Drilling’s relative valuation to be attractive at current levels; on our estimates it is trading at an implied ‘steel value’ per 6G harsh semi of USD378m, well below other recent data-points. To trade in line with peers and second-hand transactions, we estimate a fair value of NOK42–48, while to reflect valuation in the Songa/Transocean M&A deal, we would consider NOK47 to be a fair value. We maintain BUY and our NOK40 target price.
Odfjell Drilling

Odfjell Drilling Ltd. (Odfjell Drilling) is an integrated offshore drilling and oil service company. The Company operates through three segments: Mobile Offshore Drilling Units (MODU), Drilling & Technology, and Well Services. The Mobile Offshore Drilling Units is responsible for operations of mobile drilling units fully or partly owned by the Company and units owned by other companies. It operates mobile drilling units in Norway, United Kingdom, Angola, Vietnam and Brazil. The Drilling & Technology segment is providing platform drilling, project management and engineering services. Drilling & Technology operates from offices in Bergen, Stavanger and Aberdeen. The Well Services segment is a provider of casing and tubing running services (TRS), drill tool rental and well intervention services to the onshore and offshore oil and gas industry. The Well Services are provided to onshore and offshore drilling operations in the North Sea, mainland Europe and Black Sea, among others.

DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.


Martin Huseby Karlsen

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