SDRL - Vantage Drilling: Transforming Into A Rig Management Services Provider - Hold

2025-01-17 09:41:48 ET

Summary

• Vantage Drilling remains in the process of transitioning from an offshore driller to a rig management services provider.
• Third quarter results were impacted by shipyard projects for two of the company's rigs.
• The recent sale of the company's remaining jackup rigs and required capital expenditures related to the floater fleet will negatively impact results going forward.
• Considering the anemic trading volume in the shares and uncertainties regarding the company's future earnings and cash generation potential, the current discount to estimated net asset value seems justified.
• Consequently, I am reiterating my "Hold" rating on the shares.

Note:

Vantage Drilling International Ltd. or "Vantage Drilling" ( OTCPK:VTDRF ) has been discussed by me previously, so investors should view this article as an update to my earlier coverage of the company. ...

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