Sea1 Offshore (Buy, TP: NOK30.00) - Waiting for newbuilds
We forecast Q1 EBITDA of USD30m versus consensus of USD33m, as we expect low utilisation of the AHTS fleet due to yard stays and other idle time during the quarter. The recent sale of Sea1 Spearfish (above our NAV) was notable, in our view, and the stock is trading at a P/NAV of 0.6x. The sizeable newbuild programme (remaining capex of cUSD400m versus current EV of USD527m) is limiting near-term FCF and creating a more back-end-loaded cash flow profile than peers. We reiterate our BUY, but have lowered our target price to NOK30 (35).
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.
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