Moeller Maersk Drilling DRLCOupdate Nov- 20th, 2020
This is not a recommendation or proposal to do anything. The data written in this article is not guarranteed. It is my private personal opinion. I`m not independing as I own a position of Moeller Maersk Drilling shares.
Chances & Risks
The collapse of the oil price even before the corona panic reduced the demand for drilling ships significantly. The utilization of the fleet reduced to 58%. The cash flow is slightly negative the loss is a horror but mostly caused by impairment charges.
At the moment it looks like many oil companies renegotiate contracts with service companies to improve their conditions. Which means it is not becoming better for the drilling companies. The order baglog is getting shorter and shorter.
It would require a significant increase of the oil/gas prices to improve the situation of drilling companies like MMD. It might take a couple of years untill the situation will turn and an increased demand will meet with strongly decreased capacities.
Data & Information
The main asset of the company are 22 offshore rigs.
Guidance 20 Q3/20 H1/20 2019 2018 2015
Utilization % 58 66
Contracted Days 1146 1303Q2
Revenue mio. $ 226 584 1220 1430 2518
EBITDA/mio. $ 140 415 595 1403
Net Cash Flow -32
Net Dept bn$: 1.1 1.1 1.1
Total assets bn$ 3.9 5.5
Dividend: No Dividend paid!
41,532,112 shares of a nominal value of DKK 10 each. At 30 June 2020, the Company holds 243,164 treasury shares (30 June 2019: nil) and the average number of shares in circulation during the first half of 2020 was 41,410,530. Maersk Drilling has one share class. Each share carries one vote and no restrictions on ownership or voting rights. Maersk Drilling is listed on Nasdaq Copenhagen (XCSE), trading under the ticker symbol DRLCO.
A few references