Seadrill (Buy, TP: NOK600.00) - Keeping focus on the out-years
Despite recent contracts, 2024 is set to be a transition year for Seadrill, with several of its rigs likely to reposition for new contracts. Although this is not yet fully reflected in consensus, we see investor focus shifting to 2025–2026 as Seadrill looks well placed to build earnings visibility and could benefit from new contracts with Petrobras on its three low-dayrate rigs from 2026. We consider Seadrill the most attractively valued large-cap offshore driller in our coverage, trading at a 2026e EV/EBITDA of 2.9x. We reiterate our BUY and NOK600 target price.
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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