OB:ODL

Stock Analysis Report

Odfjell Drilling

Executive Summary

Odfjell Drilling Ltd. operates as an integrated offshore drilling, well service, and engineering company worldwide.


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

ODLIndustryMarket
7 Day5.8%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 Year81.0%81.0%-17.9%-23.4%31.8%15.1%
5 Year193.2%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

Valuation

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

company0%marketbottom25%2.8%markettop25%6.0%industryaverage5.2%forecastin3Years0.5%

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

NamePositionTenureCompensationOwnership
Simen Lieungh
CEO & President10.1yrsUS$1.01m0.20% $12.4m
Atle Sæbø
CFO & Executive VP0yrsUS$540.00kno data
Eirik Knudsen
VP of Corporate Finance & Investor Relations0yrsno datano data
Per Lund
Chief Technology Officer - Digital Transformation0yrsno datano data
Bengt Olsen
Senior Vice President of Communication & Information0yrsno datano data
Jone Torstensen
Chief of Staff & Executive VP0yrsno datano data
Kurt Fjell
Executive Vice President of Odfjell Drilling Technology0yrsno datano data
Janike Myre
Senior Vice President of QHSE0yrsno datano data
Kjetil Gjersdal
Executive Vice President of Mobile Drilling Units3.7yrsno datano data
Michael Nielsen
Executive VP & Chief Commercial Officer3.7yrsno datano 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

NamePositionTenureCompensationOwnership
Alasdair Shiach
Independent Director1.2yrsno datano data
Helene Odfjell
Chairman of the Board0yrsno datano data
Susanne Munch Thore
Independent Director1.7yrsno data0.0013% $78.1k
Thomas Marsoner
Independent Director1.2yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ODLOB (Oslo Bors)YesShare Capital NONOKSep 2013
OD3DB (Deutsche Boerse AG)YesShare Capital DEEURSep 2013
0QHXLSE (London Stock Exchange)YesShare Capital GBNOKSep 2013
ODLOBATS-CHIXE (BATS 'Chi-X Europe')YesShare Capital GBNOKSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:03
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
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.