Jack-up Rig Oversupply And Capital Costs Will Worsen Margins

Despite a deterioration in revenue growth forecasts and a substantial rise in the already elevated future P/E multiple, Shelf Drilling’s consensus price target has increased notably from NOK7.31 to NOK8.73. What's in the News ADES International Holding Ltd agreed to acquire Shelf Drilling, Ltd.

Consensus price targets for Shelf Drilling have been sharply revised downward as analysts now expect contracting revenues and significantly weaker earnings, resulting in a much higher forward P/E and a new fair value estimate of NOK7.31. What's in the News Secured a one-year contract extension for the Key Manhattan jack-up rig, adding approximately USD 29 million in value and extending commitment until November 2026 with an additional one-year option.

AnalystConsensusTarget has increased revenue growth from -0.8% to 0.1%, increased profit margin from 5.3% to 10.2% and decreased future PE multiple from 17.6x to 5.4x.

AnalystConsensusTarget has increased shares outstanding growth rate from 0.1% to 0.2%.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget has increased revenue growth from -1.5% to -0.8%, increased profit margin from 4.5% to 5.3%, increased future PE multiple from 7.1x to 17.2x and decreased shares outstanding growth rate from 0.2% to 0.1%.