Announcement • Nov 27
Shelf Drilling, Ltd.(OB:SHLF) dropped from S&P Global BMI Index Shelf Drilling, Ltd.(OB:SHLF) dropped from S&P Global BMI Index Valuation Update With 7 Day Price Move • Sep 16
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to kr18.24, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 10x in the Energy Services industry in Norway. Total returns to shareholders of 3.1% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr18.44 per share. Major Estimate Revision • Aug 17
Consensus EPS estimates fall by 57%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from US$906.1m to US$930.0m. EPS estimate fell from US$0.21 to US$0.091 per share. Net income forecast to shrink 74% next year vs 24% growth forecast for Energy Services industry in Norway . Consensus price target of kr11.17 unchanged from last update. Share price was steady at kr13.74 over the past week. Reported Earnings • Aug 08
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: US$0.044 (up from US$0.068 loss in 2Q 2024). Revenue: US$241.2m (up 3.1% from 2Q 2024). Net income: US$11.2m (up US$25.8m from 2Q 2024). Profit margin: 4.6% (up from net loss in 2Q 2024). Revenue exceeded analyst estimates by 7.0%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is expected to decline by 2.9% p.a. on average during the next 3 years, while revenues in the Energy Services industry in Norway are expected to grow by 7.1%. Over the last 3 years on average, earnings per share has increased by 120% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. New Risk • Aug 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Norwegian stocks, typically moving 8.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Share price has been highly volatile over the past 3 months (8.9% average weekly change). Earnings are forecast to decline by an average of 30% per year for the foreseeable future. Shareholders have been substantially diluted in the past year (30% increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improves as stock rises 45% After last week's 45% share price gain to kr13.70, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 6x in the Energy Services industry in Norway. Total loss to shareholders of 5.6% over the past three years. Announcement • Aug 05
ADES International Holding Ltd signed an agreement to acquire Shelf Drilling, Ltd. (OB:SHLF) from Castle Harlan, Inc., Perestroika AS and others for NOK 3.9 billion. ADES International Holding Ltd signed an agreement to acquire Shelf Drilling, Ltd. (OB:SHLF) from Castle Harlan, Inc., Perestroika AS and others for NOK 3.9 billion on August 5, 2025. As part of the acquisition, ADES International through the Bidco company ADES International Cayman will acquire all issued and outstanding shares of Shelf Drilling, Ltd at NOK 14 per share payable in cash. As part of consideration, NOK 3.6 billion will be paid towards common equity and NOK 305 million towards Equity Awards of Shelf Drilling, Ltd. In addition, the transaction is supported with irrevocable commitments to vote in favor of the transaction at an extraordinary general meeting of the Shelf Drilling, Ltd provided by shareholders Castle Harlan and Perestroika as well as Shelf Drilling, Ltd’s CEO and CFO, and board members, together holding 15% of the outstanding shares in Shelf Drilling, Ltd. The Transaction is accretive to earnings per share and free cash flow for ADES, supporting strong returns for shareholders. The Transaction is to be financed through ADES’s available credit facility. Following completion of the transaction, Shelf Drilling will be wholly owned by ADES International, and Shelf Drilling, Ltd. will be delisted from the Oslo Stock Exchange.
The Transaction is conditional upon fulfilment of certain customary closing conditions, including certain regulatory approvals having been received and absence of any relevant legal restraints; no material breach of the Transaction Agreement and the approval of the plan of merger at an extraordinary general meeting in Shelf Drilling by the affirmative vote of two-thirds of the votes cast on the resolution at extraordinary general meeting. The extraordinary general meeting will be convened separately and held mid-September 2025. The board of directors of Shelf Drilling, Ltd has resolved to recommend its shareholders to vote in favor of the Transaction. The Transaction is expected to close in the fourth quarter of 2025.
SpareBank 1 Markets AS acted as sole financial advisor to ADES International Holding Ltd. Advokatfirmaet Schjødt As and Maples Group acted as legal advisors to ADES International Holding Ltd. Evercore Inc. (NYSE:EVR) acted as sole financial advisor and fairness opinion provider to Shelf Drilling, Ltd. Advokatfirmaet Thommessen AS, Conyers Dill & Pearman and Latham & Watkins LLP acted as legal advisors to Shelf Drilling, Ltd. DNB Bank ASA (OB:DNB) acted as registrar to Shelf Drilling, Ltd. Major Estimate Revision • Jul 31
Consensus EPS estimates increase by 38% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from US$0.093 to US$0.128. Revenue forecast steady at US$906.1m. Net income forecast to shrink 65% next year vs 22% growth forecast for Energy Services industry in Norway . Consensus price target up from kr7.47 to kr8.80. Share price fell 4.5% to kr9.08 over the past week. New Risk • Jul 09
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 30% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Earnings are forecast to decline by an average of 18% per year for the foreseeable future. Shareholders have been substantially diluted in the past year (30% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Major Estimate Revision • Jul 02
Consensus EPS estimates increase by 62% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from US$0.086 to US$0.14. Revenue forecast steady at US$907.0m. Net income forecast to shrink 60% next year vs 21% growth forecast for Energy Services industry in Norway . Consensus price target down from kr7.24 to kr6.79. Share price rose 16% to kr9.12 over the past week. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to kr9.12, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 7x in the Energy Services industry in Norway. Total loss to shareholders of 24% over the past three years. Board Change • Jun 23
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 1 experienced director. 5 highly experienced directors. Independent Director Xianzhi Mei was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jun 20
Shelf Drilling, Ltd. Approves the Appointment of Directors Shelf Drilling, Ltd. announced the Chair noted that, on the recommendation of the Nomination Committee, it is proposed by ordinary resolution pursuant to Article 31 to approve the appointment of J. William Franklin, Jr., Steven Becker and Stig Vangen as Directors each with effect from the date of the Meeting. The Chair noted that, as the prior resolution had been passed, it was proposed by ordinary resolution pursuant to Article 33.10 to approve the appointment of J. William Franklin, Jr. as the chair of the board of Directors with effect from the date of the Meeting. The proposed appointment will be for a term expiring at the next annual general meeting (unless such person resigns or is removed from office in accordance with the Articles of Association of the Company in effect from time to time at an earlier date). Major Estimate Revision • Jun 17
Consensus EPS estimates fall by 38% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from US$0.14 to US$0.086 per share. Revenue forecast steady at US$899.3m. Net income forecast to shrink 72% next year vs 13% growth forecast for Energy Services industry in Norway . Consensus price target of kr7.10 unchanged from last update. Share price was steady at kr8.15 over the past week. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to kr8.16, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 6x in the Energy Services industry in Norway. Total loss to shareholders of 57% over the past three years. New Risk • May 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Earnings are forecast to decline by an average of 7.8% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (20% increase in shares outstanding). Reported Earnings • May 13
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: US$0.053 (up from US$0.021 in 1Q 2024). Revenue: US$245.7m (down 3.5% from 1Q 2024). Net income: US$13.7m (up 211% from 1Q 2024). Profit margin: 5.6% (up from 1.7% in 1Q 2024). Revenue exceeded analyst estimates by 7.4%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to stay flat during the next 3 years compared to a 2.3% growth forecast for the Energy Services industry in Norway. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. Major Estimate Revision • May 11
Consensus EPS estimates increase by 26% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from US$0.119 to US$0.15. Revenue forecast steady at US$898.2m. Net income forecast to shrink 39% next year vs 21% growth forecast for Energy Services industry in Norway . Consensus price target down from kr13.39 to kr7.46. Share price rose 7.3% to kr5.24 over the past week. Major Estimate Revision • Apr 25
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$932.5m to US$899.0m. EPS estimate also fell from US$0.184 per share to US$0.15 per share. Net income forecast to shrink 39% next year vs 24% growth forecast for Energy Services industry in Norway . Consensus price target down from kr19.46 to kr12.68. Share price fell 11% to kr5.45 over the past week. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr7.08, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 7x in the Energy Services industry in Norway. Total loss to shareholders of 19% over the past three years. Reported Earnings • Mar 04
Full year 2024 earnings: EPS in line with analyst expectations despite revenue beat Full year 2024 results: EPS: US$0.36 (up from US$0.038 loss in FY 2023). Revenue: US$985.2m (up 12% from FY 2023). Net income: US$81.4m (up US$89.0m from FY 2023). Profit margin: 8.3% (up from net loss in FY 2023). Revenue exceeded analyst estimates by 9.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is expected to decline by 1.3% p.a. on average during the next 3 years, while revenues in the Energy Services industry in Norway are expected to grow by 2.6%. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. New Risk • Jan 21
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 13% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (8.1% operating cash flow to total debt). Earnings are forecast to decline by an average of 13% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (20% increase in shares outstanding). Announcement • Jan 08
Shelf Drilling, Ltd. Approves Nomination Committee Appointments Shelf Drilling, Ltd. at its Extraordinary General Meeting held on January 7, 2025, approved Ryan E Schedler (Chair), Manuel Garcia, and David A. Castle each be appointed as members of the Company's Nomination Committee in accordance with Article 37.3 of the Company's Twelfth Amended and Restated Memorandum and Articles of Association, with effect from the date of the Meeting. Announcement • Jan 06
Shelf Drilling, Ltd., Annual General Meeting, Jun 11, 2025 Shelf Drilling, Ltd., Annual General Meeting, Jun 11, 2025. Announcement • Jan 05
Shelf Drilling, Ltd. to Report Q3, 2025 Results on Nov 10, 2025 Shelf Drilling, Ltd. announced that they will report Q3, 2025 results on Nov 10, 2025 Announcement • Dec 19
Shelf Drilling, Ltd. Announces Main Pass I Rig Update Shelf Drilling, Ltd. announced that the company has entered into an agreement to sell the Main Pass I for total consideration of USD 11 million. The rig will be permanently retired from drilling operations, with the major drilling equipment and inventory removed for use across the Shelf Drilling fleet. The sale is subject to customary closing conditions and is expected to close by February 2025. Shelf Drilling has now served notice to terminate the drilling contract that was suspended in respect of the Main Pass I rig in the Middle East earlier this year. Major Estimate Revision • Nov 26
Consensus EPS estimates increase by 130% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from US$878.2m to US$930.0m. EPS estimate increased from US$0.156 to US$0.36 per share. Net income forecast to grow 62% next year vs 68% growth forecast for Energy Services industry in Norway. Consensus price target down from kr34.61 to kr27.57. Share price fell 38% to kr8.92 over the past week. Recent Insider Transactions • Nov 24
Independent Director recently sold kr109k worth of stock On the 20th of November, David Williams sold around 8k shares on-market at roughly kr13.58 per share. This transaction amounted to 8.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. New Risk • Nov 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Norwegian stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (8.1% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (20% increase in shares outstanding). Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to kr10.20, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 6x in the Energy Services industry in Norway. Total returns to shareholders of 95% over the past three years. Reported Earnings • Nov 14
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: US$0.32 (up from US$0.21 in 3Q 2023). Revenue: US$267.9m (up 3.6% from 3Q 2023). Net income: US$67.5m (up 65% from 3Q 2023). Profit margin: 25% (up from 16% in 3Q 2023). Revenue exceeded analyst estimates by 38%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Energy Services industry in Norway. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Nov 13
Consensus EPS estimates increase by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from US$849.7m to US$878.2m. EPS estimate increased from US$0.127 to US$0.156 per share. Net income forecast to grow 316% next year vs 94% growth forecast for Energy Services industry in Norway. Consensus price target down from kr38.80 to kr34.59. Share price fell 6.1% to kr13.95 over the past week. Announcement • Oct 24
Shelf Drilling, Ltd. and Shelf Drilling (North Sea), Ltd. Announces AOC Approval and Operational Update in Norway Shelf Drilling, Ltd. and Shelf Drilling (North Sea), Ltd. announced that the Norwegian Ocean Industry Authority (Havtil) issued the Acknowledgement of Compliance (AoC) for the Shelf Drilling Barsk jack-up rig. With the AoC approval in place, operations are now expected to commence in the coming weeks. New Risk • Oct 15
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 20% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (7.1% operating cash flow to total debt). Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (20% increase in shares outstanding). Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to kr20.04, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 7x in the Energy Services industry in Norway. Total returns to shareholders of 308% over the past three years. Major Estimate Revision • Sep 19
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from US$0.112 to US$0.127. Revenue forecast steady at US$849.7m. Net income forecast to grow 276% next year vs 72% growth forecast for Energy Services industry in Norway. Consensus price target down from kr37.83 to kr37.01. Share price rose 8.9% to kr18.29 over the past week. Announcement • Sep 16
Shelf Drilling, Ltd. (OB:SHLF) agreed to acquire Shelf Drilling (North Sea), Ltd. (OB:SDNS) approximately NOK 2.6 billion. Shelf Drilling, Ltd. (OB:SHLF) agreed to acquire Shelf Drilling (North Sea), Ltd. (OB:SDNS) for approximately NOK 2.6 billion on September 16, 2024. Shares will be purchased at NOK 25.90 per share. The board of director of Shelf Drilling, Ltd have approved the deal. Subject to timely fulfillment of the conditions for the Proposed Merger, the Proposed Merger is expected to be completed towards the second half of October 2024. The transaction is subject to approval of offer by target shareholders.
Advokatfirmaet Thommessen AS and Conyers Dill & Pearman LLP are acted as legal advisor to Shelf Drilling, Ltd. SpareBank 1 Markets AS are acted as financial advisor to Shelf Drilling, Ltd. Advokatfirma Wiersholm AS and Appleby are acted as legal advisor to Shelf Drilling (North Sea), Ltd. Major Estimate Revision • Sep 03
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$923.0m to US$845.7m. EPS estimate also fell from US$0.15 per share to US$0.112 per share. Net income forecast to grow 274% next year vs 51% growth forecast for Energy Services industry in Norway. Consensus price target broadly unchanged at kr37.80. Share price fell 7.0% to kr16.83 over the past week. Reported Earnings • Aug 15
Second quarter 2024 earnings released: US$0.068 loss per share (vs US$0.009 profit in 2Q 2023) Second quarter 2024 results: US$0.068 loss per share (down from US$0.009 profit in 2Q 2023). Revenue: US$234.0m (up 19% from 2Q 2023). Net loss: US$14.6m (down US$16.3m from profit in 2Q 2023). Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Energy Services industry in Norway. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 73% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 14
Consensus EPS estimates fall by 69% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$874.5m to US$842.1m. EPS estimate also fell from US$0.098 per share to US$0.031 per share. Net income forecast to shrink 13% next year vs 18% growth forecast for Energy Services industry in Norway . Consensus price target down from kr39.17 to kr37.22. Share price was steady at kr20.30 over the past week. Major Estimate Revision • Aug 10
Consensus EPS estimates increase by 64% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from US$0.098 to US$0.16. Revenue forecast steady at US$866.6m. Net income forecast to grow 65% next year vs 38% growth forecast for Energy Services industry in Norway. Consensus price target broadly unchanged at kr39.09. Share price fell 11% to kr19.18 over the past week. Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to kr23.56, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 8x in the Energy Services industry in Norway. Total returns to shareholders of 403% over the past three years. New Risk • May 16
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 11% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (10% increase in shares outstanding). Announcement • Mar 28
Shelf Drilling, Ltd. Announces Resignation of John Reynolds as Director Shelf Drilling, Ltd. announced that John Reynolds has resigned as a director of the Company with immediate effect. This follows the sale of shares by LR-Shelf Drilling International, L.P. in October 2023 and the exit of Lime Rock Partners as a sponsor of the Company. Reported Earnings • Mar 05
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: US$0.038 loss per share (improved from US$0.18 loss in FY 2022). Revenue: US$908.0m (up 31% from FY 2022). Net loss: US$7.60m (loss narrowed 74% from FY 2022). Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Energy Services industry in Norway. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 73% per year, which means it is significantly lagging earnings growth. New Risk • Feb 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Norwegian stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). High level of non-cash earnings (23% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.4% average weekly change). Shareholders have been diluted in the past year (10% increase in shares outstanding). Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr28.00, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 7x in the Energy Services industry in Norway. Total returns to shareholders of 762% over the past three years. Major Estimate Revision • Dec 15
Consensus EPS estimates increase by 57%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$892.0m to US$825.4m. EPS estimate rose from US$0.07 to US$0.11. Net income forecast to grow 1,272% next year vs 64% growth forecast for Energy Services industry in Norway. Consensus price target broadly unchanged at kr49.65. Share price rose 5.8% to kr28.50 over the past week. New Risk • Nov 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 21% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). High level of non-cash earnings (23% accrual ratio). Minor Risk Shareholders have been diluted in the past year (21% increase in shares outstanding). New Risk • Nov 10
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.3x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). High level of non-cash earnings (23% accrual ratio). Announcement • Sep 28
Shelf Drilling, Ltd. announced that it expects to receive NOK 640.2 million in funding Shelf Drilling, Ltd. announced a private placement to issue 19,400,000 offer shares at a price of NOK 33 for the gross proceeds of NOK 640,200,000 on September 26, 2023. Reported Earnings • Aug 10
Second quarter 2023 earnings released: EPS: US$0.009 (vs US$0.12 loss in 2Q 2022) Second quarter 2023 results: EPS: US$0.009 (up from US$0.12 loss in 2Q 2022). Revenue: US$214.2m (up 42% from 2Q 2022). Net income: US$1.70m (up US$18.4m from 2Q 2022). Profit margin: 0.8% (up from net loss in 2Q 2022). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Energy Services industry in Norway. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has increased by 105% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Jun 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 4 highly experienced directors. Independent Director David Williams was the last director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Board Change • Jun 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 4 highly experienced directors. Independent Director David Williams was the last director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • Jun 13
Shelf Drilling, Ltd. Announces Mei Xianzhi Elected as A Director of the Company Shelf Drilling, Ltd. announced that at it's AGM Mei Xianzhi elected as a Director of the Company until such time as such Director resigns or is removed from office in accordance with the Articles of Association of the Company in effect from time to time (the "Appointment"). Announcement • May 17
Shelf Drilling, Ltd. Announces Lou Dongyang Stand Down as Director Shelf Drilling, Ltd. has been notified that Lou Dongyang is standing down as a director of the Company with effect from the date of the next Annual General Meeting of the Company. The Company hereby gives notice that the Annual General Meeting of the Company will be held on June 12, 2023 in the Cayman Islands. Reported Earnings • May 16
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: US$0.18 loss per share (further deteriorated from US$0.034 loss in 1Q 2022). Revenue: US$183.4m (up 18% from 1Q 2022). Net loss: US$33.4m (loss widened US$28.8m from 1Q 2022). Revenue exceeded analyst estimates by 27%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Energy Services industry in Norway. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has increased by 91% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 20
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: US$0.18 loss per share (improved from US$0.57 loss in FY 2021). Revenue: US$695.2m (up 32% from FY 2021). Net loss: US$28.8m (loss narrowed 63% from FY 2021). Revenue exceeded analyst estimates by 6.8%. Earnings per share (EPS) also surpassed analyst estimates by 36%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Energy Services industry in Norway. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 46% per year, which means it is significantly lagging earnings growth. Announcement • Feb 02
Shelf Drilling, Ltd. has completed a Follow-on Equity Offering in the amount of NOK 467.377214 million. Shelf Drilling, Ltd. has completed a Follow-on Equity Offering in the amount of NOK 467.377214 million.
Security Name: Common Shares
Security Type: Common Stock
Securities Offered: 17,636,876
Price\Range: NOK 26.5
Transaction Features: Subsequent Direct Listing Announcement • Dec 31
Shelf Drilling, Ltd., Annual General Meeting, Sep 06, 2023 Shelf Drilling, Ltd., Annual General Meeting, Sep 06, 2023. 
