Energy Drilling

BMW-M5
06.03.2025 kl 20:53 3974

Nisje-markedet for "tender rigs" i Asia er veldig lønnsomt med lange kontrakter. Energy Drilling har nesten 40% av dette markedet og en backlog på ca 500 mill usd med en cash flow margin på nesten 50%.

https://staging.edrill.com/wp-content/uploads/2024/09/test-presentation-file.pdf
https://staging.edrill.com/wp-content/uploads/2024/11/presentation-pareto-conference-240911.pdf
Redigert i dag kl 18:28 Du må logge inn for å svare
jf
15.03.2025 kl 10:36 3565

As a SBX shareholder, as with most other stocks, you should really only care about downside.

I can only see downside from here if BOTH of these things happen:
a) Merger is cancelled and,
b) Either Fulmar Explorer or Eagle Explorer can't get new contracts.

If merger is completed they are guiding for $270M FCF from backlog over next few years (firm contracts) vs. pro-forma combined mcap of $370M.
If merger is NOT completed and contracts (Fulmar/Eagle) are renewed at a low $55.000 (vs $65.000 last indication of market rates) FCF (before debt paydown) should be around $12M/year with a mcap of $40M
jf
15.03.2025 kl 11:55 3481

BMW-M5 skrev Innlegget er slettet
Agree with all your points. And as a shareholder in SBX (bought after merger announcement) I hope the merger goes through.

SBX might have more upside as a stand alone company (if both ships gets contracts @$65.000) but the reduced risk with more assets and longer contract terms makes this an attractive transaction for SBX shareholders.

Edrill had net debt of $33M as of 2024Q4 and are generating $10-12M pr. month in cash so the estimate from Pareto conference checks out. When/if merger closes around Q2 combined company will be significantly net cash.
Cola
24.04.2025 kl 12:58 1880

BMW-M5 skrev Innlegget er slettet
Fearnleys har også dekning, 7,5.
Utbyttene blir saftige.
Redigert 24.04.2025 kl 13:06 Du må logge inn for å svare
Cola
25.04.2025 kl 12:35 1647

Det skal være EGM idag. Kanskje det kommer nyheter?
Merger med Energy Drilling skal straks være i boks.