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

Fundamentals

Fair value with moderate 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


Market Performance


7 Day Return

3.7%

ODL

1.0%

NO Energy Services

0.07%

NO Market


1 Year Return

-13.7%

ODL

-31.5%

NO Energy Services

-8.7%

NO Market

Return vs Industry: ODL exceeded the Norwegian Energy Services industry which returned -31.5% over the past year.

Return vs Market: ODL underperformed the Norwegian Market which returned -8.7% over the past year.


Shareholder returns

ODLIndustryMarket
7 Day3.7%1.0%0.07%
30 Day-5.1%-4.6%-1.9%
90 Day7.2%-3.2%2.1%
1 Year-13.7%-13.7%-30.2%-31.5%-3.9%-8.7%
3 Year133.7%133.7%2.5%-4.4%40.2%21.9%
5 Year32.1%32.1%-29.6%-51.1%59.2%22.5%

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

Undervalued: ODL (NOK28.4) is trading below our estimate of fair value (NOK79.53)

Significantly Undervalued: 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 (25x) compared to the Energy Services industry average (17.1x).

PE vs Market: ODL is poor value based on its PE Ratio (25x) compared to the Norwegian market (13.3x).


Price to Earnings Growth Ratio

Low 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 (0.7x) 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?

55.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ODL's forecast earnings growth (55.7% per year) is above the savings rate (1.8%).

Earnings vs Market: ODL's earnings (55.7% per year) are forecast to grow faster than the Norwegian market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ODL's revenue (3.7% per year) is forecast to grow slower than the Norwegian market (4.7% per year).

High Growth Revenue: ODL's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ODL's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Odfjell Drilling performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ODL's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: ODL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ODL had negative earnings growth (-7%) over the past year, making it difficult to compare to the Energy Services industry average (5%).


Return on Equity

High ROE: ODL's Return on Equity (3.6%) is considered low.


Return on Assets

ROA vs Industry: ODL's Return on Assets is below or equal to the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: ODL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Odfjell Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: ODL's short term assets ($341.4M) do not cover its short term liabilities ($373.3M)

Long Term Liabilities: ODL's short term assets (341.4M) do not cover its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: ODL's debt to equity ratio (138.7%) is considered high

Reducing Debt: ODL's debt to equity ratio has increased from 106.5% to 138.7% over the past 5 years.

Debt Coverage: ODL's debt is not well covered by operating cash flow (15.7%).

Interest Coverage: ODL's interest payments on its debt are not well covered by EBIT (1.5x coverage).


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).


Next Steps

Dividend

What is Odfjell Drilling's current dividend yield, its reliability and sustainability?

0.14%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.6%markettop25%6.2%industryaverage4.5%forecastin3Years0.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

0.8yrs

Average board tenure


CEO

Simen Lieungh (59yo)

9.8yrs

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 ($USD1.01M) is about average for companies of similar size in the Norwegian market ($USD543.38K).

Compensation vs Earnings: Simen's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

0.8yrs

Average Tenure

Experienced Board: ODL's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$85,50004 Dec 18
Susanne Munch Thore
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$28.50

Ownership Breakdown


Management Team

  • Simen Lieungh (59yo)

    CEO & President

    • Tenure: 9.8yrs
    • Compensation: US$1.01m
  • Atle Sæbø (63yo)

    CFO & Executive VP

    • Tenure: 0yrs
    • Compensation: US$540.00k
  • Bengt Olsen (63yo)

    Senior Vice President of Communication & Information

    • Tenure: 0yrs
  • Janike Myre (57yo)

    Senior Vice President of QHSE

    • Tenure: 0yrs
  • Jone Torstensen (58yo)

    Chief of Staff & Executive VP

    • Tenure: 0yrs
  • Kurt Fjell

    Executive Vice President of Odfjell Drilling Technology

    • Tenure: 0yrs
  • Per Lund

    Chief Technology Officer - Digital Transformation

    • Tenure: 0yrs
  • Ole Maier (52yo)

    Executive Vice President of Platform Drilling & Technology

    • Tenure: 0yrs
  • Kjetil Gjersdal (49yo)

    Executive Vice President of Mobile Drilling Units

    • Tenure: 3.3yrs
  • Eirik Knudsen

    VP of Corporate Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • Alasdair Shiach

    Director

    • Tenure: 0.8yrs
  • Helene Odfjell (54yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Susanne Munch Thore (59yo)

    Director

    • Tenure: 1.3yrs
  • Thomas Marsoner

    Director

    • Tenure: 0.8yrs

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: kr6.725b
  • 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 & T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:39
End of Day Share Price2019/10/18 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.