Seadrill (SDRL.OL), mcap=nok14bn, price nok280 vs nok320

$SDRL.OL pitch:
– Offshore drilling contractor.
– Recently emerged from Chapter 11.
-A significantly de-leveraged balance sheet with debt from $5bn to $0.4bn.
– Already contracted backlog indicates sharp growth in revenue and earnings.
– Expected NYSE relisting and index inclusions.
– 60%+ upside at peer valuations.

– EBITDA is expected at $270m for ’22 and $435m for ’23 driven by an already contracted backlog.
– Currently sits at 4.5xEBITDA.
– Peers $VAL, $DRLCO, and $RIG trade at 7.7x/7.3x/8.3x. $50-$60/share target using peer multiples.

Exp. gain: +60-80% to $50-$60/share.

Full $SDRL.OL write-up (free guest account required):

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