Update shared on07 Aug 2025
Fair value Increased 53%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. for NOK 3.9 billion, offering NOK 14 per share in cash, with support from key shareholders and management; Shelf Drilling will be delisted from the Oslo Stock Exchange upon deal completion, expected in Q4 2025.
- Shelf Drilling secured a one-year extension for Rig 141 in the Gulf of Suez, Egypt, valued at approximately USD 23 million, extending availability to February 2027.
- Shelf Drilling obtained a one-year extension for the Key Manhattan jack-up rig, adding USD 29 million in contract value, committed until November 2026 with a one-year option.
- Shelf Drilling received a three-year contract award for the J.T. Angel jack-up rig with ONGC offshore India, valued at USD 40 million; operations set to begin in October 2025, and plans to dispose of the Trident XII rig for non-drilling purposes.
- A five-year extension was secured for the High Island V jack-up rig, adding USD 133 million in contract value and extending the commitment until July 2030.
Valuation Changes
Summary of Valuation Changes for Shelf Drilling
- The Consensus Analyst Price Target has significantly risen from NOK7.31 to NOK8.73.
- The Future P/E for Shelf Drilling has significantly risen from 100.29x to 152.68x.
- The Consensus Revenue Growth forecasts for Shelf Drilling has significantly fallen from -2.7% per annum to -3.3% per annum.
Disclaimer
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