Solstad Offshore - Initiation of coverage - Attractive assets at a discount
The refinancing completed earlier this year created a more complex holding structure, but we believe the market applies too large a holding discount as the stub is trading at a 2025e EV/EBITDA of 3.4x and Solstad Maritime at 3.7x (below peers’ c4.5x). We calculate NOK9 (23%) upside potential for the stub to trade in line with peers and further upside potential of NOK3–10 (7–26%) if Solstad Maritime is revalued at peer multiples after applying a 20–0% minority discount (a separate listing of Solstad Maritime is targeted for Q2 2025). We initiate coverage with a BUY and NOK60 target price.Solstad Farstad is a holding company. Through its subsidiaries, Co. is engaged in the operation of offshore service and construction vessels. Co.'s business is divided into three segments based on the different types of vessels: Anchor-Handling Vessels delivering services related to rig moves and anchoring of rigs and other devices at sea, Platform Supply Vessels delivering services relating to transportation of material to offshore installations and Construction Service Vessels delivering services relating to development of both sub sea and floating installations. As of Dec 31 2009, Co. operated a fleet of 50 wholly owned, jointly owned and leased vessels.
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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