DnB Markets - Valaris PLC Class A (E65F) Valaris (Buy, TP: USD41.00) - Another driller with a fresh start

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DnB Markets

Martin Huseby Karlsen

EUR 480.09 For Business Accounts Only

Valaris (Buy, TP: USD41.00) - Another driller with a fresh start

Having emerged from Chapter 11 with a fresh balance sheet, Valaris equity started trading yesterday. Although its backlog profile is thin, resulting in limited near-term EBITDA, we note the jack-up segment looks significantly better than its floaters. Unlike Noble, there is little support on earnings multiples in the near term, but it screens as attractive on asset values (even assuming further retirements). Hence, based on our NAV, we are resuming coverage with a BUY (NO REC), and a target price of USD41.

04/05/2021 20 EN

Underlying

Valaris PLC Class A

Ensco is an offshore contract drilling company engaged in providing offshore contract drilling services to the international oil and gas industry. As of Dec 31 2017, Co. owned and operated an offshore drilling rig fleet of 62 rigs. Co.'s rig fleet includes 12 drillships, 11 semisubmersible rigs, four moored semisubmersible rigs and 38 jackup rigs, including rigs under construction. Co.'s business consists of three operating segments: floaters, which includes its drillships and semisubmersible rigs; jackups; and other, which consists of management services on rigs owned by third-parties. Co.'s two reportable segments, floaters and jackups, provide one service, contract drilling.

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GB00B4VLR192 Frankfurt Stock Exchange United Kingdom

Provider

DnB Markets

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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Analysts

Martin Huseby Karlsen

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Valaris (Buy, TP: USD41.00) - Another driller with a fresh start

Petrobras UDW rig selection

Back to normal with Petrobras

Monthly LMI Update Independent Investment Research

While waiting for Pemex

AAK (Buy, TP: SEK370.00) - Set for another rich CBE year

Konecranes (Buy, TP: EUR75.00) - Much of the same into 2025e

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