11 Apr, 2018 (Updated 11 Apr, 2018)
We believe DOF is well-positioned to take advantage of the upturn in the subsea market.
DOF has commissioned Nordea Markets to produce a research report with the aim of providing investors with quality research on the company.
Geared exposure to subsea recovery – Updated 11 April 2018
Global provider of offshore and subsea services
DOF is a global provider of offshore and subsea services to the offshore oil and gas industry through its fleet of 67 offshore service vessels. DOF’s AHTS/PSV fleet is relatively young and consists mainly of high-end vessels, which makes it well-positioned in the market, while its subsea fleet of pipelay-, construction- and dive-support vessels enables DOF to serve most of the subsea value chain.
Exposure to subsea recovery
We are now seeing an emerging upturn in the subsea market as several years of underinvestment draw to an end and field developments keep on hitting the market, prompted by reduced field breakevens and improved financials for oil companies. We believe DOF is well-positioned to take advantage of the upturn thanks to its mix of subsea project capability and time chartering of subsea vessels.
Based on our sum-of-the-parts and multiple valuation, we value DOF at NOK 0.95 -1.38 per share. The low end of the range is based on our fundamental sum-of-the-parts approach, grounded on DCF valuations of each subsidiary, while the high-end is based on the historical average sector multiple pre-downturn and DOF’s own median multiple of 8x.
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Conflict of interest
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This report has been reviewed, for the purpose of verification of fact or sequence of facts, by the issuer of the relevant financial instruments mentioned in the report prior to publication. The review has led to changes of facts in the report. Completion date: 11 April 2018, 06:50 CET