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    What Odfjell Drilling (OB:ODL)'s Extended Equinor Contract and US$373 Million Backlog Means For Shareholders

    Simply Wall St·12/25/2025 11:19:40
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    • Odfjell Drilling Ltd. recently confirmed that the Letter of Intent for its Deepsea Aberdeen rig has been converted into a firm contract with Equinor to drill an unspecified scope on the Norwegian Continental Shelf in an interim phase before moving to the Fram Sør project, running from fourth quarter 2026 to first quarter 2029.
    • The agreement adds approximately US$373 million of firm backlog, excluding integrated services and incentives, further anchoring Odfjell Drilling’s long-term revenue visibility in its core Norwegian harsh-environment market.
    • We’ll now examine how this extended Equinor contract, and the added US$373 million backlog, affects Odfjell Drilling’s existing investment narrative.

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    Odfjell Drilling Investment Narrative Recap

    To own Odfjell Drilling, you generally need to believe in sustained demand for Norwegian harsh-environment rigs and the value of long, fixed-rate contracts with blue chip operators. The newly firmed US$373 million Equinor contract meaningfully strengthens near term backlog, supporting the key short term catalyst of cash generation, while also reinforcing the main risk of client concentration, since exposure to Equinor and Aker BP remains high.

    The recent one year extension of Deepsea Nordkapp with Aker BP, running through 2027 with rates to be set by independent brokers, is especially relevant here. Taken together with the Deepsea Aberdeen award, it underlines how Odfjell’s upgrade cycle and modern fleet are translating into extended contract coverage and improved earnings visibility, while still leaving investors exposed to any shift in Norwegian operator spending or contract renewal appetite.

    Yet behind these growing contracts, investors should be aware that heavy reliance on a small group of Norwegian clients means...

    Read the full narrative on Odfjell Drilling (it's free!)

    Odfjell Drilling's narrative projects $912.3 million revenue and $188.7 million earnings by 2028.

    Uncover how Odfjell Drilling's forecasts yield a NOK106.13 fair value, a 23% upside to its current price.

    Exploring Other Perspectives

    OB:ODL Earnings & Revenue Growth as at Dec 2025
    OB:ODL Earnings & Revenue Growth as at Dec 2025

    Simply Wall St Community members publish fair value estimates from NOK32.11 to NOK204.45 across 3 submissions, so you are seeing very different views on upside. Set against a growing long term backlog with Equinor and Aker BP, this spread in opinions underlines how concentrated customer exposure can influence expectations for Odfjell Drilling’s future resilience and cash flows.

    Explore 3 other fair value estimates on Odfjell Drilling - why the stock might be worth over 2x more than the current price!

    Build Your Own Odfjell Drilling Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.