OB:SHLF

Stock Analysis Report

Shelf Drilling

Executive Summary

Shelf Drilling, Ltd., through its subsidiaries, operates as a shallow water offshore drilling contractor in the Middle East, South East Asia, India, West Africa, and the Mediterranean.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Shelf Drilling has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Shelf Drilling's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.8%

OB:SHLF

3.8%

NO Energy Services

2.4%

NO Market


1 Year Return

-71.6%

OB:SHLF

-40.8%

NO Energy Services

-14.2%

NO Market

SHLF underperformed the Energy Services industry which returned -41.1% over the past year.

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


Share holder returns

SHLFIndustryMarket
7 Day9.8%3.8%2.4%
30 Day-40.6%-13.2%-3.1%
90 Day-54.9%-20.4%-4.4%
1 Year-71.6%-71.6%-39.7%-40.8%-9.3%-14.2%
3 Yearn/a-3.2%-9.8%38.7%20.4%
5 Yearn/a-52.0%-65.8%38.0%6.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Shelf Drilling's share price is below the future cash flow value, and at a moderate discount (> 20%).

Shelf Drilling's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Shelf Drilling is loss making, we can't compare its value to the NO Energy Services industry average.

Shelf Drilling is loss making, we can't compare the value of its earnings to the Norway market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Shelf Drilling, we can't assess if its growth is good value.


Price Based on Value of Assets

Shelf Drilling is good value based on assets compared to the NO Energy Services industry average.


Next Steps

Future Growth

How is Shelf Drilling expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

50.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shelf Drilling's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Shelf Drilling is not considered high growth as it is expected to be loss making for the next 1-3 years.

Shelf Drilling's revenue growth is expected to exceed the Norway market average.

Unable to compare Shelf Drilling's earnings growth to the Norway market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Shelf Drilling's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Shelf Drilling will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Shelf Drilling performed over the past 5 years?

-44.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shelf Drilling does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Shelf Drilling's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Shelf Drilling's 1-year growth to the NO Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Shelf Drilling has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

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


Return on Capital Employed

It is difficult to establish if Shelf Drilling improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Shelf Drilling's financial position?


Financial Position Analysis

Shelf Drilling is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Shelf Drilling's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Shelf Drilling's level of debt (132.8%) compared to net worth is high (greater than 40%).

Unable to establish if Shelf Drilling's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x 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.

Shelf Drilling has sufficient cash runway for 1.3 years based on current free cash flow.

Shelf Drilling has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 38.6% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Shelf Drilling's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Shelf Drilling's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Shelf Drilling has not reported any payouts.

Unable to verify if Shelf Drilling's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Shelf Drilling has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Shelf Drilling's dividends in 3 years as they are not expected to pay a notable one for Norway.


Next Steps

Management

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

4.1yrs

Average board tenure


CEO

David Mullen (61yo)

6.8yrs

Tenure

0

Mr. David J. Mullen serves as the Chief Executive Officer at Shelf Drilling Holdings Limited and Shelf Drilling, Ltd. Mr. Mullen was founder of Shelf Drilling Holdings Limited. Mr. Mullen has over 30 years ...


Board Age and Tenure

4.1yrs

Average Tenure

65yo

Average Age

The tenure for the Shelf Drilling board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$1,317,299,93909 May 19
Wealthy Marvel International Limited
EntityCompany
Shares23,076,922
Max PriceUS$57.08
BuyUS$210,768,01809 May 19
CMIC Ocean En-Tech Holding Co., Ltd.
EntityCompany
Shares3,692,308
Max PriceUS$57.08

Ownership Breakdown


Management Team

  • David Mullen (61yo)

    CEO & Director

    • Tenure: 6.8yrs
  • Ian Clark (59yo)

    Executive Vice President

    • Tenure: 0.0yrs
  • Kurt Hoffman (65yo)

    Executive VP & COO

    • Tenure: 0.0yrs
  • Dzul Bakar (52yo)

    VP, General Counsel & Secretary

    • Tenure: 0.0yrs
  • Greg O’Brien (32yo)

    Executive VP & CFO

    • Tenure: 3.4yrs

Board Members

  • David Pittaway (67yo)

    Director

    • Tenure: 4.1yrs
  • JKC Castle (79yo)

    Director

    • Tenure: 6.8yrs
  • Ben Sebel

    Director

    • Tenure: 6.8yrs
  • John Reynolds (48yo)

    Director

    • Tenure: 6.9yrs
  • Ernie Danner (64yo)

    Chairman

    • Tenure: 0.8yrs
  • David Mullen (61yo)

    CEO & Director

    • Tenure: 6.8yrs
  • Graham Brooke

    Director

    • Tenure: 2.3yrs
  • David Williams (66yo)

    Director

    • Tenure: 2.0yrs
  • Usama Trabulsi (73yo)

    Director

    • Tenure: 2.3yrs
  • J. Franklin (47yo)

    Director

    • Tenure: 6.9yrs

Company Information

Shelf Drilling, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shelf Drilling, Ltd.
  • Ticker: SHLF
  • Exchange: OB
  • Founded: 2012
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: kr2.274b
  • Shares outstanding: 135.73m
  • Website: https://www.shelfdrilling.com

Number of Employees


Location

  • Shelf Drilling, Ltd.
  • One JLT
  • Floor 12
  • Dubai
  • United Arab Emirates

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHLFOB (Oslo Bors)YesCommon SharesNONOKMay 2017
SHLFOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKMay 2017
6SDDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2017

Biography

Shelf Drilling, Ltd., through its subsidiaries, operates as a shallow water offshore drilling contractor in the Middle East, South East Asia, India, West Africa, and the Mediterranean. It provides equipmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 22:09
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.