DOF Group (OB:DOFG) Is Down 6.6% After Securing Multi-Year bp Subsea Services Contract Is the Long-Term Outlook Affected?

• DOF Group ASA announced in November 2025 that it secured a 3-year firm contract, with 2 years of options, to provide subsea services for bp in the Atlantic region, deploying a high-capability vessel for subsea construction, installation, and maintenance starting in early 2026.
• This agreement highlights DOF's capacity to win multi-year contracts with major energy clients, enhancing long-term operational visibility in a highly competitive offshore services sector.
• We’ll examine how this new multi-year contract with bp could reinforce DOF’s focus on recurring revenue and contract backlog stability.

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DOF Group Investment Narrative Recap

To own DOF Group shares, you need to believe in sustained demand for complex offshore and subsea energy solutions, underpinned by long-term client relationships. The new multi-year contract with bp adds further visibility to the company’s revenue backlog, reinforcing its strengths but not materially shifting the near-term catalyst of backlog growth or the principal risk of geographic concentration in Brazil, which still dominates portfolio exposure. Among recent announcements, the extension of three PLSV contracts with Petrobras in Brazil is most relevant. It underscores both the opportunity and challenge DOF faces: while backlog expansion provides earnings protection, it also deepens dependence on a single geographic market, leaving the business exposed if conditions in Brazil deteriorate unexpectedly. Yet, investors should be aware that despite expanding backlog, risk remains if regional disruption impacts cash flow or earnings…

Read the full narrative on DOF Group (it's free!)

DOF Group's narrative projects $2.1 billion in revenue and $462.6 million in earnings by 2028. This requires 8.9% yearly revenue growth and a $85.6 million earnings increase from the current $377.0 million.

Uncover how DOF Group's forecasts yield a NOK131.33 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate fair value between NOK101.78 and NOK449.81, based on five separate forecasts. While backlog has risen sharply from new contracts, your view on regional risk may shape how you assess these varied valuations.

Explore 5 other fair value estimates on DOF Group - why the stock might be worth just NOK101.78!

Build Your Own DOF Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DOF Group research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.
• Our free DOF Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DOF Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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