NE - Nobel Corp: Prospects In A Halved Fleet World

2024-02-07 12:58:08 ET

Summary

• The offshore drilling sector has seen a significant contraction in the number of drillships since 2015.
• NE, with its fleet of 19 drillships and 13 jackups, benefits from these tighter supply dynamics.
• Positive short-term momentum is weighed against its relatively high valuation, oil price volatility and long-term demand uncertainties.

Investment Thesis

The offshore drilling sector has undergone significant changes in recent years, with the number of drillships cut in half since 2015. This shift created a better situation for suppliers, who now benefit from higher rental rates as demand resumes....

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