Shelf Drilling (Buy, TP: NOK50.00) - Increased flexibility ahead
With comprehensive refinancing in place, Shelf Drilling has pushed debt maturities to 2029 and allowed for decent cash flow generation to equity, post scheduled debt amortisation. From a dividend capacity perspective, we estimate 2024–2026 accumulated cash flow to equity of cNOK16/share, or c56% of the current share price (adjusted for its stake in Shelf Drilling North Sea). While no dividend strategy has been communicated, we believe dividend payments could start in late 2024. We reinstate a recommendation, with a BUY and NOK50 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.
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.