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 concerning outlook.


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

Stable Share Price: SHLF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

SHLF

-1.6%

NO Energy Services

-1.7%

NO Market


1 Year Return

-61.3%

SHLF

-20.4%

NO Energy Services

-3.3%

NO Market

Return vs Industry: SHLF underperformed the Norwegian Energy Services industry which returned -20.4% over the past year.

Return vs Market: SHLF underperformed the Norwegian Market which returned -3.3% over the past year.


Shareholder returns

SHLFIndustryMarket
7 Day-0.5%-1.6%-1.7%
30 Day3.9%-0.4%0.9%
90 Day17.7%10.9%6.8%
1 Year-61.3%-61.3%-18.9%-20.4%2.2%-3.3%
3 Yearn/a7.1%-1.1%38.5%20.8%
5 Yearn/a-31.3%-53.2%54.2%18.5%

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 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: SHLF (NOK18.6) is trading below our estimate of fair value (NOK233.5)

Significantly Below Fair Value: SHLF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SHLF is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: SHLF is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SHLF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SHLF is good value based on its PB Ratio (0.4x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Shelf Drilling forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

51.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHLF is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SHLF is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SHLF is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SHLF's revenue (11.2% per year) is forecast to grow faster than the Norwegian market (4.5% per year).

High Growth Revenue: SHLF's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHLF is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Shelf Drilling performed over the past 5 years?

-41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHLF has high quality earnings.

Growing Profit Margin: SHLF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SHLF is unprofitable, and losses have increased over the past 5 years at a rate of -41.1% per year.

Accelerating Growth: Unable to compare SHLF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SHLF is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (14%).


Return on Equity

High ROE: SHLF has a negative Return on Equity (-20.41%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shelf Drilling's financial position?


Financial Position Analysis

Short Term Liabilities: SHLF's short term assets ($240.9M) exceeds its short term liabilities ($143.4M)

Long Term Liabilities: SHLF's short term assets ($240.9M) do not cover its long term liabilities (954.3M)


Debt to Equity History and Analysis

Debt Level: SHLF's debt to equity ratio (143.6%) is considered high.

Reducing Debt: Insufficient data to determine if SHLF's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: SHLF has a high level of physical assets or inventory.

Debt Coverage by Assets: SHLF's 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.

Stable Cash Runway: SHLF has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SHLF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%6.1%industryaverage4.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SHLF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SHLF'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 SHLF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SHLF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SHLF'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 Shelf Drilling's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

David Mullen (61yo)

7.1yrs

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

4.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: SHLF's board of directors are considered experienced (4.3 years average tenure).


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$18,129,99704 Sep 19
Pelham Capital Ltd
EntityCompany
Shares1,000,000
Max PriceUS$18.13
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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 36%.


Management Team

  • David Mullen (61yo)

    CEO & Director

    • Tenure: 7.1yrs
  • Ian Clark (59yo)

    Executive Vice President

    • Tenure: 0yrs
  • Kurt Hoffman (65yo)

    Executive VP & COO

    • Tenure: 0yrs
  • Dzul Bakar (52yo)

    VP, General Counsel & Secretary

    • Tenure: 0yrs
  • Greg O’Brien (32yo)

    Executive VP & CFO

    • Tenure: 3.7yrs

Board Members

  • David Pittaway (67yo)

    Independent Director

    • Tenure: 4.3yrs
  • JKC Castle (79yo)

    Independent Director

    • Tenure: 7yrs
  • Ben Sebel

    Independent Director

    • Tenure: 7yrs
  • John Reynolds (48yo)

    Independent Director

    • Tenure: 7.2yrs
  • Ernie Danner (64yo)

    Chairman

    • Tenure: 1yrs
  • David Mullen (61yo)

    CEO & Director

    • Tenure: 7.1yrs
  • Graham Brooke

    Independent Director

    • Tenure: 2.6yrs
  • David Williams (66yo)

    Independent Director

    • Tenure: 2.3yrs
  • Tyson Smith (31yo)

    Independent Director

    • Tenure: 2.6yrs
  • J. Franklin (47yo)

    Independent Director

    • Tenure: 7.2yrs

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: kr2.508b
  • Shares outstanding: 134.85m
  • 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 Analysis2019/11/18 22:04
End of Day Share Price2019/11/18 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.