Shelf Drilling (Buy, TP: NOK100.00) - Attractive entry point
With its IPO earlier this summer, Shelf Drilling has completed a capital structure transformation. Also, the recent acquisition of a premium jack-up for USD68m is in our view at an attractive level. As Shelf Drilling is a pure jack-up company with a demonstrated ability to put standard rigs to work and is selectively pursuing fleet renewal, we consider it attractively leveraged to a jack-up market recovery. We reinstate our BUY following the restriction related to our involvement in the recent IPO, with a target price of NOK100 (115). The Q2 results are due today after market close.
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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