HALISTER1: BW Offshore Raised at Sundal Collier; ‘Living Well’ at $50/Bbl

BW Offshore Raised at Sundal Collier; ‘Living Well’ at $50/Bbl

(Bloomberg) -- BW Offshore raised to buy at Sundal Collier, with PT decrease of 60% to NOK0.40; says co. “living well” with oil in $50-$55/bbl range, a price range “which we expect.”
  • Sees deep discount that market now placing on valuation to narrow as investors start to appreciate abated financial, operating risk following capital raise
    • Co.’s turnaround “basically eliminating” refinance risk until 1Q 2020; case very different from other restructuring deals “for which segment supply/demand is ‘destroyed’ for years to come”; sees higher backlog integrity for BW Offshore
    • Also likes risk/reward of bonds trading in 60s
  • Shares up as much as 15% today, most since Aug. 5; stock’s gain to date of 67% is on track for largest since 2Q 2009
  • Co. to report 2Q on Aug. 29
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BWO NO (BW Offshore Ltd)

People
Haakon Amundsen (ABG Sundal Collier Holding ASA)
Lukas Daul (ABG Sundal Collier Holding ASA)

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