Update shared on 03 Dec 2025
Fair value Increased 6.93%Analysts have raised their price target for Odfjell Drilling to approximately $106 from about $99, citing upgraded expectations for revenue growth, slightly higher profit margins, and a modestly lower discount rate. Together, these factors support a somewhat richer valuation multiple trajectory.
What's in the News
- Aker BP has signed a one year extension for the Deepsea Nordkapp, lifting the rig's firm contract backlog to the end of 2027, with additional options remaining open (company announcement).
- The operating dayrate for the Deepsea Nordkapp extension will be set by the end of 2025, based on prevailing market levels and quotes from two independent rig brokers (company announcement).
- Odfjell Drilling has signed a Letter of Intent for Deepsea Aberdeen with an undisclosed client, extending the unit's firm backlog to the second quarter of 2029, starting in late 2026 (company announcement).
- The company has declared a third quarter 2025 cash dividend of USD 0.20 per share, totaling USD 48 million, with an ex dividend date of 12 November 2025 and payment on 26 November 2025 (company announcement).
Valuation Changes
- The Fair Value Estimate has increased from NOK 99.26 to NOK 106.13, implying a modestly higher intrinsic equity valuation for Odfjell Drilling.
- The Discount Rate has edged down slightly from 7.72 percent to 7.70 percent, supporting a somewhat higher present value of forecast cash flows.
- The Revenue Growth assumption has risen significantly from about 2.0 percent to roughly 4.9 percent, reflecting stronger expectations for top-line expansion.
- The Net Profit Margin forecast has increased marginally from 19.00 percent to 19.42 percent, indicating a slightly more optimistic view on profitability.
- The future P/E multiple has been trimmed moderately from 16.9x to 16.3x, suggesting a somewhat more conservative valuation multiple despite the higher fair value estimate.
Disclaimer
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