Street Smart Investor
Long-term horizon, energy, natural resources, micro-cap

Fred Olsen Energy: Undervalued Stock With 10% Dividend Yield

Company Overview

Fred Olsen Energy (OTCPK:FOEAY) is a leading provider of offshore exploration and production services to the oil and gas industry. As of December 2013, Fred Olsen had a fleet of 11 rigs, including two new rigs to be delivered in early 2014 and in the third quarter of 2015. The company's rigs had an average contract length of 31 months with a total order backlog of $4.6 billion.

For the year ended December 2013, Fred Olsen reported revenue of $1.2 billion and an EBITDA of $571 million. Further, the company announced a dividend of NOK20 ($0.68) per share, which implies a dividend yield of 10% considering the current stock price of $6.7.

I must add here...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details