Noble Corporation 04.05.2023
ISIN GB00BMXNWH07
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.
Noble Corporation is a drilling contractor with a market capitalization of about 5bn$. The oil&gas market is very much fluctuating from a high with an oil price above 100$/bl in 2015 to 0 in 2020 and back to 100$/bl now. When oil prices fall one of the first action steps oil companies does is to reduce its capex. Thus the market for oil rigs is extremly fluctuating. NE is a turbo on oil&gas prices
Chances & Risks
The company is very much occupied by the merger with Moeller Maersk Drilling. The following quarters will show its performance.
The predecessors of the merged company`s did not pay dividends since 2016.
Data & Information
Share
Ordinary A shares of 0.00001$: 134,751 K (31.03.2023)
Share based awards 3271K
Warrants 7971K
Weighted average shares outstanding 145,993 K
K=1000
Shareholders
A few references
Moeller Maersk Drilling was taken over by Noble Corporation
Moeller Maersk Drilling DRLCOupdate Aug. 20, 2022
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.
The oil&gas market is very much fluctuating from a high with an oil price above 100$/bl in 2015 to 0 in 2020 and back to 100$/bl now. When oil prices fall one of the first action steps oil companies does is to reduce its capex. Thus the market for oil rigs is extremly fluctuating. Thus DRLCO is since 2016 in a negative shrinking situation. On the other hand if oil prices recover oil/gas companies increase their capex overproportional and the business of drilling companies increases overproportional. DRLCO is a turbo on oil&gas prices
On 10 November 2021, Maersk Drilling and Noble Corporation announced their intention to combine their businesses in a primarily all-share transaction to be carried out by the way of a voluntary public share exchange offer to Maersk Drilling’s shareholders. On 10 May 2022, Noble Corporation’s shareholders approved the combination at an extraordinary general meeting. On 8 August 2022, the Board of Directors of Maersk Drilling issued a statutory statement with its recommendation on the exchange offer to the shareholders.
The Noble offer is conditioned to an approval rate of 80%. The A.P. Møller Holding A/S (41.6%) already approved the merger.
Topco is offering 1.6137 newly issued A ordinary shares for each DLRCO share.
Chances & Risks
The oil market returned back from its covid panic caused depression. But the DLRCO numbers for H1/22 does not reflect it. Someone can guess that DLRCO cleaned up upfront the merger with Noble.
The collapse of the oil prices 2015 reduced the demand for drilling ships significantly. Utilization and rates decreased. Since 2021 it starts to recover. But there is still a long way to go to the situation of 2015. Major hurdles are the uncertainty caused by covid panic and the green religious dogma of "climate change". Major institutional investors Black Mountain (a fictive name) press company`s and banks to ESG targets (left ideology, green religion) to reduce their exposure to fossile energy. They press super majors to reduce their capital spending on oil.
"Since the beginning of 2020, a total of 96 rigs have been scrapped and more than USD 15bn of debt removed from the offshore drilling industry. Amidst an improving outlook for global oil and gas demand, Brent oil prices recovered to between USD 70-85 per barrel, the highest levels since 2014, spurring an increase in the demand for, and the utilisation of, offshore drilling rigs. This has provided support to day rates, which gradually increased throughout 2021 from COVID-19 lows" (Annual report DRLCO 2021).
Data & Information
Share
The Company’s share capital remained unchanged in 2021. 41,532,112 shares of a nominal value of DKK 10 each. At 30 June 2020, the Company holds 241,397 treasury shares (dec. 31. 2021) for incentives. Maersk Drilling has one share class. Each share carries one vote and tions on ownership or voting rights. Maersk Drilling is listed on Nasdaq Copenhagen (XCSE), trading under the ticker symbol DRLCO.
Shareholders
Major shareholders were APMH Invest A/S, a subsidiary of A.P. Møller Holding A/S (41.6%) and A.P. Møller og Hustru Chastine Mc-Kinney Møllers Familiefond (8.9%) unchanged in 2021
The company is controlled by the Moeller family
A few references
1. https://www.seanews.co.uk/container-shipping-market-an-outlook-for-2018/
2. https://seekingalpha.com/news/3387060-maersk-tests-wind-power-cut-shipping-fuel-costs?ifp=0&v=1535715900
3. https://www.offshore-energy.biz/tullow-extends-maersk-drillship-charter-despite-cancellation-notice/