Executive Summary
Odfjell Drilling Ltd. operates as an integrated offshore drilling, well service, and engineering company worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with reasonable growth potential.
Share Price & News
How has Odfjell Drilling's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ODL's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.8%
ODL
3.4%
NO Energy Services
1.7%
NO Market
1 Year Return
-0.5%
ODL
-25.9%
NO Energy Services
-1.3%
NO Market
Return vs Industry: ODL exceeded the Norwegian Energy Services industry which returned -25.1% over the past year.
Return vs Market: ODL matched the Norwegian Market which returned -1.3% over the past year.
Shareholder returns
| ODL | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.8% | 3.4% | 1.7% |
| 30 Day | -4.1% | -13.7% | -3.1% |
| 90 Day | -1.3% | -8.6% | 2.3% |
| 1 Year | -0.5%-0.5% | -24.4%-25.9% | 4.3%-1.3% |
| 3 Year | 81.0%81.0% | -17.9%-23.4% | 31.8%15.1% |
| 5 Year | 193.2%193.2% | -20.4%-46.8% | 57.1%23.9% |
Price Volatility Vs. Market
How volatile is Odfjell Drilling's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does Odfjell Drilling Ltd.'s (OB:ODL) CEO Pay Compare Well With Peers?3 weeks ago | Simply Wall St
Is Odfjell Drilling (OB:ODL) A Risky Investment?1 month ago | Simply Wall St
Odfjell Drilling (OB:ODL) Shareholders Have Enjoyed An Impressive 159% Share Price GainValuation
Is Odfjell Drilling undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ODL (NOK25.98) is trading below our estimate of fair value (NOK93.32)
Significantly Below Fair Value: ODL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ODL is poor value based on its PE Ratio (16.1x) compared to the Energy Services industry average (12.2x).
PE vs Market: ODL is poor value based on its PE Ratio (16.1x) compared to the Norwegian market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: ODL is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: ODL is overvalued based on its PB Ratio (0.6x) compared to the NO Energy Services industry average (0.6x).
Next Steps
Future Growth
How is Odfjell Drilling forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
37.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ODL's forecast earnings growth (37.2% per year) is above the savings rate (0.7%).
Earnings vs Market: ODL's earnings (37.2% per year) are forecast to grow faster than the Norwegian market (18.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ODL's revenue (3.8% per year) is forecast to grow faster than the Norwegian market (3.2% per year).
High Growth Revenue: ODL's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ODL's Return on Equity is forecast to be low in 3 years time (9.7%).
Next Steps
Past Performance
How has Odfjell Drilling performed over the past 5 years?
36.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ODL has a large one-off gain of $9.7M impacting its September 30 2019 financial results.
Growing Profit Margin: ODL's current net profit margins (5.4%) are higher than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: ODL has become profitable over the past 5 years, growing earnings by 36.8% per year.
Accelerating Growth: ODL's earnings growth over the past year (104.5%) exceeds its 5-year average (36.8% per year).
Earnings vs Industry: ODL earnings growth over the past year (104.5%) exceeded the Energy Services industry -12.6%.
Return on Equity
High ROE: ODL's Return on Equity (4.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Odfjell Drilling's financial position?
Financial Position Analysis
Short Term Liabilities: ODL's short term assets ($322.1M) do not cover its short term liabilities ($351.0M).
Long Term Liabilities: ODL's short term assets ($322.1M) do not cover its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: ODL's debt to equity ratio (135.6%) is considered high.
Reducing Debt: ODL's debt to equity ratio has increased from 103% to 135.6% over the past 5 years.
Balance Sheet
Inventory Level: ODL has a high level of physical assets or inventory.
Debt Coverage by Assets: ODL's debt is not covered by short term assets (assets are 0.2x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: ODL is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: ODL is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Odfjell Drilling's current dividend yield, its reliability and sustainability?
0.49%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ODL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ODL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ODL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ODL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: ODL is not paying a notable dividend for the Norwegian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ODL's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Simen Lieungh (59yo)
10.1yrs
Tenure
US$1,005,000
Compensation
Mr. Simen Lieungh is Director at Multiconsult ASA since April 25, 2019. He has been the Chief Executive Officer and President of Odfjell Drilling AS since October 1, 2010 and Odfjell Drilling Ltd. since 20 ...
CEO Compensation Analysis
Compensation vs Market: Simen's total compensation ($USD1.01M) is above average for companies of similar size in the Norwegian market ($USD587.00K).
Compensation vs Earnings: Simen's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & President | 10.1yrs | US$1.01m | 0.20% $12.4m | |
| CFO & Executive VP | 0yrs | US$540.00k | no data | |
| VP of Corporate Finance & Investor Relations | 0yrs | no data | no data | |
| Chief Technology Officer - Digital Transformation | 0yrs | no data | no data | |
| Senior Vice President of Communication & Information | 0yrs | no data | no data | |
| Chief of Staff & Executive VP | 0yrs | no data | no data | |
| Executive Vice President of Odfjell Drilling Technology | 0yrs | no data | no data | |
| Senior Vice President of QHSE | 0yrs | no data | no data | |
| Executive Vice President of Mobile Drilling Units | 3.7yrs | no data | no data | |
| Executive VP & Chief Commercial Officer | 3.7yrs | no data | no data |
3.7yrs
Average Tenure
58.5yo
Average Age
Experienced Management: ODL's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 1.2yrs | no data | no data | |
| Chairman of the Board | 0yrs | no data | no data | |
| Independent Director | 1.7yrs | no data | 0.0013% $78.1k | |
| Independent Director | 1.2yrs | no data | no data |
1.2yrs
Average Tenure
Experienced Board: ODL's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ODL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.1%.
Top Shareholders
Company Information
Odfjell Drilling Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Odfjell Drilling Ltd.
- Ticker: ODL
- Exchange: OB
- Founded: 1914
- Industry: Oil and Gas Drilling
- Sector: Energy
- Market Cap: kr6.152b
- Shares outstanding: 236.78m
- Website: https://www.odfjelldrilling.com
Number of Employees
Location
- Odfjell Drilling Ltd.
- Bergen House
- Crawpeel Road
- Aberdeen
- Aberdeenshire
- AB12 3LG
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ODL | OB (Oslo Bors) | Yes | Share Capital | NO | NOK | Sep 2013 |
| OD3 | DB (Deutsche Boerse AG) | Yes | Share Capital | DE | EUR | Sep 2013 |
| 0QHX | LSE (London Stock Exchange) | Yes | Share Capital | GB | NOK | Sep 2013 |
| ODLO | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Share Capital | GB | NOK | Sep 2013 |
Biography
Odfjell Drilling Ltd. operates as an integrated offshore drilling, well service, and engineering company worldwide. The company operates through three segments: Mobile Offshore Drilling Units, Drilling & Technology, and Well Services. It operates drilling units and offers management services to owners of semisubmersibles, drillships, and jack-up; and project management and follow-up during construction, management of regulatory requirements, marketing and client relations, preparations for operation, and drilling operations. The company also provides integrated drilling services, such as onshore support, production drilling and completion, well maintenance, plugging and abandonment, facility maintenance planning, and project management for maintenance and modifications; and onceptual engineering and engineering design, compliance assurance and maintenance management, marine and operational support, and rig inspection services, as well as construction and commissioning support, modifications, and upgrades. In addition, it provides well services to the oil industry, including casing and tubular running, drill tool and tubular rental, well intervention, and wellbore cleaning services. The company was founded in 1914 and is headquartered in Aberdeen, the United Kingdom. Odfjell Drilling Ltd. is a subsidiary of Odfjell Partners Ltd.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 22:03 |
| End of Day Share Price | 2020/02/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.