OB:OCY

Stock Analysis Report

Executive Summary

Ocean Yield ASA, a ship owning company, invests in vessels on long-term charters within oil-service and industrial shipping areas in Norway.

Snowflake

Fundamentals

Reasonable growth potential second-rate dividend payer.

Share Price & News

How has Ocean Yield's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.9%

OB:OCY

5.9%

NO Energy Services

3.1%

NO Market


1 Year Return

-20.0%

OB:OCY

-40.9%

NO Energy Services

-14.0%

NO Market

OCY outperformed the Energy Services industry which returned -41.1% over the past year.

OCY underperformed the Market in Norway which returned -14.6% over the past year.


Share holder returns

OCYIndustryMarket
7 Day4.9%5.9%3.1%
30 Day-1.9%-13.7%-4.0%
90 Day-16.1%-20.6%-4.8%
1 Year-10.9%-20.0%-39.8%-40.9%-9.1%-14.0%
3 Year4.2%-21.8%-1.1%-8.0%39.5%21.0%
5 Year97.3%23.7%-51.0%-65.2%38.7%7.1%

Price Volatility Vs. Market

How volatile is Ocean Yield's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ocean Yield undervalued based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ocean Yield's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Ocean Yield's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Ocean Yield is overvalued based on earnings compared to the NO Energy Services industry average.

Ocean Yield is overvalued based on earnings compared to the Norway market.


Price Based on Expected Growth

Ocean Yield is poor value based on expected growth next year.


Price Based on Value of Assets

Ocean Yield is overvalued based on assets compared to the NO Energy Services industry average.


Next Steps

Future Growth

How is Ocean Yield expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

33.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ocean Yield's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Ocean Yield's earnings are expected to grow significantly at over 20% yearly.

Ocean Yield's revenue growth is expected to exceed the Norway market average.

Ocean Yield's earnings growth is expected to exceed the Norway market average.

Ocean Yield's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Ocean Yield is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ocean Yield performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ocean Yield's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Ocean Yield's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Ocean Yield's 1-year earnings growth is negative, it can't be compared to the NO Energy Services industry average.


Return on Equity

Ocean Yield has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ocean Yield used its assets less efficiently than the NO Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Ocean Yield's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ocean Yield's financial position?


Financial Position Analysis

Ocean Yield's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Ocean Yield's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ocean Yield's level of debt (242%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (131.5% vs 242% today).

Debt is not well covered by operating cash flow (6.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Ocean Yield's current dividend yield, its reliability and sustainability?

12.02%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ocean Yield's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.73%).

Ocean Yield's dividend is above the markets top 25% of dividend payers in Norway (6.42%).

Whilst dividend payments have been stable, Ocean Yield has been paying a dividend for less than 10 years.

Dividend payments have increased, but Ocean Yield only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.1x coverage).


Next Steps

Management

What is the CEO of Ocean Yield's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Lars Solbakken (62yo)

7.4yrs

Tenure

US$1,502,670

Compensation

Mr. Lars Solbakken has been the Chief Executive Officer at Ocean Yield AS since March 23, 2012. Mr. Solbakken served as the Chief Executive Officer at Eidsiva Rederi ASA (also known as Norwegian Car Carrie ...


CEO Compensation Analysis

Lars's remuneration is higher than average for companies of similar size in Norway.

Lars's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

40yo

Average Age

The tenure for the Ocean Yield management team is about average.


Board Age and Tenure

6.1yrs

Average Tenure

52.5yo

Average Age

The tenure for the Ocean Yield board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$1,893,00020 Sep 18
Lars Solbakken
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares30,000
Max PriceUS$63.10
BuyUS$378,60020 Sep 18
Marius Magelie
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Finance & Investor Relations
Shares6,000
Max PriceUS$63.10
BuyUS$315,50020 Sep 18
Andreas Reklev
EntityIndividual
Role
Chief Investment Officer
Senior Vice President of Investments
Shares5,000
Max PriceUS$63.10
BuyUS$631,00020 Sep 18
Andreas Røde
EntityIndividual
Role
Senior Key Executive
Head of Business Development and M&A
Shares10,000
Max PriceUS$63.10
BuyUS$1,262,00020 Sep 18
Eirik Eide
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares20,000
Max PriceUS$63.10

Ownership Breakdown


Management Team

  • Lars Solbakken (62yo)

    Chief Executive Officer

    • Tenure: 7.4yrs
    • Compensation: US$1.50m
  • Marius Magelie (37yo)

    Senior Vice President of Finance & Investor Relations

    • Tenure: 3.3yrs
  • Eirik Eide (49yo)

    Chief Financial Officer

    • Tenure: 7.4yrs
    • Compensation: US$635.75k
  • Håvard Garseth (63yo)

    Managing Director of Aker Floating Production AS

    • Tenure: 0.0yrs
  • Andreas Reklev (36yo)

    Senior Vice President of Investments

    • Tenure: 3.0yrs
  • Kristine Kosi (36yo)

    Chief Accounting Officer

    • Tenure: 0.0yrs
  • Andreas Røde (40yo)

    Head of Business Development and M&A

    • Tenure: 1.9yrs
  • Fredrik Bock-Hagen

    Managing Director Ocean Yield Malta Ltd

    • Tenure: 1.6yrs

Board Members

  • Kjell Røkke (61yo)

    Director

    • Tenure: 6.3yrs
  • Jens Ismar (62yo)

    Director

    • Tenure: 6.1yrs
  • Frank Reite (49yo)

    Chairman

    • Tenure: 3.3yrs
  • Anne-Christin Døvigen (54yo)

    Director

    • Tenure: 6.1yrs
  • Annicken Kildahl (51yo)

    Director

    • Tenure: 6.1yrs
  • Per Reppe (34yo)

    Deputy Director

    • Tenure: 3.3yrs

Company Information

Ocean Yield ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ocean Yield ASA
  • Ticker: OCY
  • Exchange: OB
  • Founded: 2012
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr8.222b
  • Shares outstanding: 159.34m
  • Website: https://www.oceanyield.no

Number of Employees


Location

  • Ocean Yield ASA
  • Oksenøyveien 10
  • Lysaker
  • Akershus
  • 1366
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCYOB (Oslo Bors)YesOrdinary SharesNONOKJul 2013
OY3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2013
0QG5LSE (London Stock Exchange)YesOrdinary SharesGBNOKJul 2013
OYIE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2013
OCYOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJul 2013

Biography

Ocean Yield ASA, a ship owning company, invests in vessels on long-term charters within oil-service and industrial shipping areas in Norway. The company operates through FPSO, Other Oil Service, Car Carrie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 22:07
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.