Expect optimism on harsh environment
Expect optimism on harsh environmentWe forecast Q3 EBITDA 8% above consensus, due primarily to our below-consensus cost expectations. For market comments, we expect an optimistic view on 6G harsh environment semis, which we share; we expect rates for a small selection of such rigs at USD250k–300k/day on upcoming jobs. For deepwater we expect a more muted view. We still find the asset valuation on the rich side, and reiterate our SELL recommendation and USD7.0 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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