Pacific Drilling (Buy, TP: USD18.00) - Few surprises in Q1 – Zonda arbitration next focus point
Pacific Drilling’s Q1 report held few surprises. Reported EBITDA was USD2m, below our USD6m forecast due to higher opex than we expected. In addition to adding backlog, a tribunal decision in the Zonda arbitration is expected soon. A favourable ruling could, to our understanding, allow Pacific Drilling to recover a minimum of cUSD250m (USD3.3/share). Having made limited estimate changes post the Q1 update, we reiterate our BUY and target price of USD18.Pacific Drilling is an international offshore drilling company committed to providing drilling services to the oil and natural gas industry through the use of high-specification rigs. Co.'s primary business is to contract its high-specification rigs, related equipment and work crews, primarily on a dayrate basis, to drill wells for Co.'s customers. Co. operates five drillships under client contract and has three drillships available. All of Co.'s drillships are self-propelled and dynamically positioned and have large carrying capacity. Co.'s five existing drillships are committed to work in the deepwater regions of the Gulf of Mexico, Brazil and Nigeria.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.