Shelf Drilling (Buy, TP: NOK40.00) - Set to maintain liquidity
For Shelf Drilling (parent), we consider the proposed refinancing of its 60%-owned subsidiary SDNS a likely relief as investors have been focused on its capital structure and liquidity situation post the recent Aramco suspensions. The proposed USD300m bond offering in SDNS would be a complete refinancing that is set to address both the earlier announced short-term liquidity requirement in SDNS (cUSD50m) as well as pushing debt maturity in SDNS from 2025 to 2028. Although Shelf Drilling has sufficient liquidity (cUSD200m available in cash at hand and undrawn RCF) to support the cUSD50m funding need in SDNS, we believe investors appreciate that it is maintaining liquidity, both due to recent volatility in the jackup market and from a shareholder-return perspective regarding Shelf Drilling.
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.