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North Atlantic Drilling - Analysis On Recent Deals From A Earnings Perspective

|Includes:North Atlantic Drilling Ltd. (NATDF)

North Atlantic Drilling(OTCPK:NATDF) leases oil rigs to Oil Majors. North Atlantic drilling have 5 semi-subs, 1 drillship, 3 jackups and where one of the the jackups is not fully owned(West linus).

Let us first investigate the deal that have been recently announced and the implications of that announcement upon the valuation of the company. The deal basically let NADL do a sale lease back of West Linus with a signed bareboat charter contract with ConocoPhilips for 372 K per day. The sale lease back agreement means NADL can still have profitability of 372 K per day but as the ship is owned by SFL(Ship Finance Limited) the terms indicate that 59.1 %(= 220 K) of the revenues NADL receives from SFL is attributable to SFL......

Read the whole article at Hunt For Value and please make comments about anything about NATDF:s business.

Disclosure: I am long OTCPK:NATDF.

Stocks: NATDF