• 简

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Odfjell Drilling (OB:ODL) Extends Deepsea Nordkapp Contract, Is The Valuation Gap Still Compelling?

    Simply Wall St·07/17/2026 17:26:03
    语音播报

    Odfjell Drilling (OB:ODL) drew fresh investor attention after confirming that Aker BP extended the firm contract for the Deepsea Nordkapp rig by one year, securing backlog through 2028 with further options available.

    See our latest analysis for Odfjell Drilling.

    Against this contract news, Odfjell Drilling’s share price, last at NOK85.4, has seen short term pressure, with the 90 day share price return down 16.76%, while the 1 year total shareholder return of 31.88% and a very large 5 year total shareholder return above 500% point to a stock where longer term momentum has been strong.

    If you are looking for other opportunities in energy infrastructure as contracts like Deepsea Nordkapp’s evolve, now could be a useful time to review 35 power grid technology and infrastructure stocks

    With Odfjell Drilling trading at NOK85.4 while some estimates point much higher and intrinsic models suggest an even wider gap, the key question is where fair value lies between those markers as contract visibility improves.

    Most Popular Narrative: 26.4% Undervalued

    With Odfjell Drilling last closing at NOK85.4 against a most followed fair value estimate of NOK115.97, the narrative centers on how contracted rigs and future earnings assumptions line up.

    The company has locked in high-quality, long-term contracts with major customers at increasing day rates, with average day rates rising quarter-on-quarter and a backlog of $1.7 billion stretching to 2030 for some assets, enhancing revenue visibility and stability for years to come. With the energy transition advancing slowly and persistent reliance on oil & gas, Odfjell Drilling's strategic focus on harsh-environment rigs positions it to capture premium day rates as operators move into harder-to-access reserves, potentially boosting long-term earnings and EBITDA margins.

    Read the complete narrative.

    Want to see what sits behind that NOK115.97 figure? The narrative leans on rising margins, a higher future profit multiple and a specific growth glide path. Curious which assumptions have the biggest impact on that discounted value and how sensitive the outcome is to small changes in those inputs? The full story is in the detailed narrative model.

    Result: Fair Value of NOK115.97 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the Odfjell Drilling narrative could be tested if key clients cut spending or if shorter contracts leave rigs idle and weaken future margin assumptions.

    Find out about the key risks to this Odfjell Drilling narrative.

    Next Steps

    With sentiment on Odfjell Drilling split between upside potential and contract or spending risks, it makes sense to move quickly, test the numbers yourself, and then weigh the 4 key rewards and 2 important warning signs

    Looking for more investment ideas beyond Odfjell Drilling?

    If you want to keep sharpening your portfolio alongside Odfjell Drilling, use the Simply Wall Street Screener to quickly surface fresh stock ideas that suit your goals.

    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.