olivLaw · European equity research
Odfjell Drilling Ltd ODL.OL
Norway · Euronext Oslo Børs · Vertical: Listed companies from Norway
Odfjell Drilling owns and operates a fleet of high-specification harsh-environment offshore drilling units and also provides management services for third-party owned units. In fiscal 2025 the company reported operating revenue of USD 901 million and EBITDA of USD 451 million, supported by strong demand on the Norwegian Continental Shelf and the acquisition of the Deepsea Bergen rig.
At the close of 06 Nov 2026, Odfjell Drilling Ltd (ODL.OL) stock was 99.50 NOK (−1.49% on the day), with beta 0.31, 52-week range 76.70–111.40 NOK.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 39.1
- weak (30–45)
- Bollinger (20, 2)
- 99.84 – 111.79
- below the lower band · %B -0.03 · band width 11.3%
- SMA 50 / 200
- 102.18 / 96.06
- mixed trend
- MACD (12, 26, 9)
- 0.53 / 1.64
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +2.4% | −0.6% | +3.0 pp | — |
| 3 months | +12.0% | −4.2% | +16.2 pp | — |
| 6 months | +0.7% | +4.3% | −3.6 pp | — |
| Year to date | +13.7% | +7.5% | +6.2 pp | — |
| 1 year | +25.9% | +9.9% | +16.0 pp | −4.7% |
| 3 years | +161.8% | +49.8% | +112.0 pp | +12.7% |
| 5 years | +433.5% | +42.8% | +390.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 732.5 m | 775.1 m | 901.2 m |
| Revenue YoY | unavailable | +5.8% | +16.3% |
| Net income | 222.1 m | 64.7 m | 167.0 m |
| Net income YoY | unavailable | −70.9% | +158.1% |
| Diluted EPS | 0.94 | 0.27 | 0.69 |
| Diluted EPS YoY | unavailable | −71.3% | +155.6% |
| net % | 30.3% | 8.3% | 18.5% |
| Free cash flow | 198.5 m | 155.7 m | -215.9 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 103.3 m USD
- Financial debt
- 1.0 bn USD
- Net debt
- 908.5 m USD
- Equity
- 1.4 bn USD
- Total assets
- 2.7 bn USD
- Debt / equity
- 0.71x
- Current ratio
- 1.00x
- ROE
- 11.8%
- ROA
- 6.8%
- FCF margin
- -24.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 732.5 m | 775.1 m | 901.2 m | esef· 21 Oct 2026verified |
| Operating income | 306.4 m | 150.5 m | 269.6 m | esef· 21 Oct 2026verified |
| Pre-tax income | 222.4 m | 78.5 m | 191.2 m | esef· 21 Oct 2026verified |
| Income tax | 300.0 k | 13.8 m | 24.2 m | esef· 21 Oct 2026verified |
| Net income | 222.1 m | 64.7 m | 167.0 m | esef· 21 Oct 2026verified |
| Diluted EPS | 0.94 | 0.27 | 0.69 | esef· 21 Oct 2026verified |
| Dividend per share | 0.12 | 0.24 | 0.67 | esef· 21 Oct 2026derived |
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 129.2 m | 118.1 m | 103.3 m | esef· 21 Oct 2026verified |
| Current assets | 254.2 m | 246.1 m | 245.0 m | esef· 21 Oct 2026verified |
| Total assets | 2.3 bn | 2.2 bn | 2.7 bn | esef· 21 Oct 2026verified |
| Short-term debt | 149.6 m | 95.0 m | 92.8 m | esef· 21 Oct 2026verified |
| Long-term debt | 561.8 m | 527.3 m | 919.0 m | esef· 21 Oct 2026verified |
| Current liabilities | 312.5 m | 256.1 m | 244.6 m | esef· 21 Oct 2026verified |
| Total liabilities | 914.8 m | 811.8 m | 1.2 bn | esef· 21 Oct 2026verified |
| Equity | 1.4 bn | 1.4 bn | 1.4 bn | esef· 21 Oct 2026verified |
| Shares outstanding at year end | 236.3 m | 239.6 m | 238.6 m | esef· 21 Oct 2026derived |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 264.7 m | 287.7 m | 401.5 m | esef· 21 Oct 2026verified |
| Capex | 66.2 m | 132.0 m | 617.4 m | esef· 21 Oct 2026verified |
| Free cash flow | 198.5 m ≈ | 155.7 m ≈ | -215.9 m ≈ | esef· 21 Oct 2026derived |
| Investing cash flow | -85.9 m | -130.3 m | -617.2 m | esef· 21 Oct 2026verified |
| Financing cash flow | -196.4 m | -163.7 m | 197.3 m | esef· 21 Oct 2026verified |
| Dividends paid | 28.4 m | 57.2 m | 159.5 m | esef· 21 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 27.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
06 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
27% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 6.32 – 21.80 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E6.32 – 21.80 (Mid 13.63)19 companies used · median multiple 19.8x · quartiles 9.2x – 31.6xABG.OL, ABTEC.OL, AFG.OL, AKER.OL, AKSO.OL, AKVA.OL, APR.OL, ARR.OL, ATEA.OL, AUSS.OL, B2I.OL, BONHR.OL, BOR.OL, BOUV.OL, BRG.OL, CLOUD.OL, DELIA.OL, ELK.OL, ELMRA.OL
- Dividend discount (DDM)8.79 – 11.82 (Mid 10.08)
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 11.1% | 59 (vs peers) | 38% |
| Net margin · Quality | 18.5% | 89 (vs peers) | 23% |
| FCF conversion · Quality | -129.3% | 0 (on a fixed band) | 23% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 17 (on a fixed band) | 15% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial17/100 · 1/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality51/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ODFJELL DRILLING LTD (ODL.OL). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 901.2 m USD in 2025; YoY growth 16.3%; net margin 18.5%; ROE 11.8%.
The estimated value range is 7.55–16.81 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 18.5%
What contradicts it
- FCF conversion: -129.3%
- Current ratio: 1.0x
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from Norway · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AKER.OLAker Asa | 79.8 bn | 20.3 | 7.9% | 21.4% | +42.5% | +36% / +59% |
| AFG.OLAf Gruppen Asa | 21.5 bn | 19.8 | 39.7% | 3.4% | +4.4% | +8% / +69% |
| ELK.OLElkem Asa | 19.2 bn | 39.3 | 1.9% | 2.7% | −15.7% | +10% / +73% |
| ATEA.OLAtea Asa | 18.5 bn | 21.4 | 19.7% | 2.3% | +8.1% | +11% / +36% |
| AKSO.OLAker Solutions Asa | 17.4 bn | 6.8 | 22.5% | 4.1% | +19.2% | +18% / −12% |
| AUSS.OLAustevoll Seafood Asa | 16.6 bn | 37.1 | 1.6% | 1.1% | +11.1% | −7% / +10% |
| BRG.OLBorregaard Asa | 15.6 bn | 25.1 | 11.4% | 8.0% | +1.3% | −18% / −9% |
| BONHR.OLBonheur ASA | 11.2 bn | 7.8 | 17.1% | 11.4% | −10.8% | +17% / +44% |
| AFK.OLArendals Fossekompani Asa | 10.3 bn | — | -2.3% | -3.1% | −14.9% | +39% / +31% |
| B2I.OLB2 Impact Asa | 8.8 bn | 14.3 | 11.0% | 16.4% | +2.6% | +40% / +238% |
| AKVA.OLAkva Group Asa | 5.7 bn | 31.2 | 13.7% | 4.2% | +24.4% | +74% / +152% |
| ELMRA.OLElmera Group Asa | 5.1 bn | 32.0 | 10.5% | 1.3% | −0.9% | +32% / +98% |
| BOUV.OLBouvet Asa | 5.0 bn | 14.2 | 80.7% | 9.2% | −0.2% | −19% / −16% |
| CLOUD.OLCloudberry Clean Energy Asa | 4.0 bn | 61.9 | 1.3% | 13.1% | +34.0% | −5% / +29% |
| ABG.OLAbg Sundal Collier Holding Asa | 3.6 bn | 10.7 | 34.9% | 16.8% | +12.4% | −13% / +20% |
| ANDF.OLAndfjord Salmon Group As | 2.2 bn | — | -5.7% | -12,770.4% | +328.9% | −18% / −11% |
| BMA.OLByggma Asa | 1.6 bn | — | -25.3% | -11.9% | −2.5% | +61% / +15% |
| APR.OLAppear Asa | 1.4 bn | 10.5 | 30.1% | 16.1% | +32.3% | −53% / unavailable |
| AZT.OLArcticzymes Technologies Asa | 1.1 bn | 108.9 | 2.9% | 8.6% | +7.9% | −8% / −48% |
| CAPSL.OLCapsol Technologies Asa | 884.6 m | — | -89.4% | -114.8% | −25.0% | −33% / −66% |
| BOR.OLBorgestad Asa | 553.2 m | 36.1 | 2.1% | 1.4% | −3.0% | −7% / +41% |
| ARR.OLArribatec Group Asa | 234.6 m | 4.8 | 22.1% | 9.3% | +15.7% | −33% / −55% |
| DELIA.OLDellia Group Asa | 73.5 m | 1.5 | 22.6% | 7.7% | +140.0% | −62% / unavailable |
| ABTEC.OLAqua Bio Technology Asa | 11.1 m | 0.1 | — | 7,297.7% | −87.2% | −82% / −97% |
| AGLX.OLAgilyx Asa | — | — | -182.4% | -12,189.3% | +20.3% | −40% / −41% |
1- and 3-year price returns: for ODL.OL from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Odfjell Drilling owns and operates a fleet of high-specification harsh-environment offshore drilling units and also provides management services for third-party owned units. In fiscal 2025 the company reported operating revenue of USD 901 million 1 and EBITDA of USD 451 million 1, supported by strong demand on the Norwegian Continental Shelf and the acquisition of the Deepsea Bergen rig.
SWOT
Strengths
- High-specification harsh-environment fleet with extensive contract coverage and high utilisation on the NCS.
- Solid firm backlog and good visibility on future revenues, supported by medium- and long-term contracts.
- Balanced capital structure with a high equity ratio and a refinancing extending final maturities to 2031.
Weaknesses
- Dependence on a single geographic area for the Own Fleet, particularly the Norwegian Continental Shelf.
- Higher interest-bearing net debt after acquisitions, which exposes the company to financing costs.
- External Fleet units have variable utilisation, and some, such as Hercules, are currently warm stacked.
Opportunities
- Growing international tendering, particularly in Namibia and Canada, could broaden the client base.
- Sector consolidation could offer further acquisition and supply rationalisation opportunities.
- Expanding the priced options in the backlog could strengthen long-term revenue visibility.
Threats
- Volatility in oil and gas prices could reduce rig demand and pressure day rates.
- A decline in re-contracting conditions could affect revenues, especially after existing contracts expire.
- Macroeconomic developments and regulatory changes could affect operators' capital expenditure decisions.
Risks
- Industry cyclicalityhigh
The offshore drilling industry is cyclical and depends on oil and gas prices, global economic conditions and operators' investment decisions 1.
- Re-contracting riskmedium
In the near to medium term, re-contracting risk for the Own Fleet is limited by existing contracts, but prolonged downtime or weaker conditions would affect earnings 1.
- Debt and interest exposuremedium
Net debt rose after acquisitions, and interest rate exposure is managed through a mix of fixed and floating-rate debt 1.
- Currency risklow
The group is exposed to USD, GBP and NOK fluctuations, managed through natural hedges in contracts and selective financial instruments 1.
- Client credit risklow
Clients are mainly large oil companies with strong credit profiles, so credit risk is considered low and is actively monitored 1.
Investment thesis
What would need to be true (bull case)
- Strong demand on the Norwegian Continental Shelf, combined with a limited supply of high-specification rigs, could support day rates and fleet utilisation in the coming years 1.
- The solid firm backlog and the Deepsea Bergen acquisition, contracted through 2028, could provide revenue visibility over the medium term 1.
- EBITDA margin improvement could continue if cost discipline and high utilisation are maintained 1.
What would break the thesis
- Sector cyclicality and sensitivity to oil and gas prices could reduce rig demand and pressure day rates 1.
- Higher net debt after acquisitions could limit financial flexibility if financing conditions worsen 1.
- Dependence on a single geographic area for a large part of the fleet could expose the company to regulatory or local demand changes 1.
What to watch
- Development of day rates and new contracts on the NCS2026
- Outcome of the international tenders in Namibia and Canada2027
- Level of net debt and financing costs after the Deepsea Bergen acquisitionQ1 2027
- Result of the advisory vote on the remuneration report at the annual general meeting2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Odfjell Drilling Ltd is the parent company of the Odfjell Drilling Group, incorporated in Bermuda with tax residence in the United Kingdom, and with operational management in Norway, the UK and Malta 1. The Group owns and operates high-specification mobile offshore drilling units for harsh environments and provides management services for third-party owned units 1. The shares have been listed on the Oslo Stock Exchange since 2013 1.
The Group's strategy rests on operational excellence, disciplined capital allocation and securing high-quality backlog, with 2025 priorities including securing backlog at satisfactory day rates and increasing shareholder distributions 1. The company follows a progressive dividend policy, and total dividends paid in 2025 amounted to USD 159 million 1.
Activities are organised in two segments, Own Fleet and External Fleet 1. During 2025 the Own Fleet operated exclusively on the Norwegian Continental Shelf with high financial utilisation 1.
Segments
Own Fleet
The Own Fleet operated exclusively on the Norwegian Continental Shelf in 2025 with high utilisation and extended contracts, including Deepsea Aberdeen, whose firm coverage now extends to 2029 1. The Deepsea Bergen acquisition, contracted with Equinor through 2028, added approximately USD 355 million of firm backlog 1.
Market context
Demand on the Norwegian Continental Shelf remains strong, characterised by a tight supply of Tier 1 harsh-environment rigs, high entry barriers and increasing day rates, with the fleet fully contracted into 2026 1. Tendering activity in international markets, particularly Namibia and Canada, increased, with project maturity expected in 2027–2028 1. Performance nevertheless remains subject to commodity price volatility and macroeconomic developments 1.
Industry consolidation during 2025 supports disciplined capital allocation and supply rationalisation, which contributes to a relatively constructive environment for specialised rig operators 1. Energy security and the need to sustain offshore production continue to support demand for drilling services 1.
Trends
- Rising day rates on the NCStailwind
Improved day rates and high utilisation supported the group's operating revenue in 2025 1. If this trend holds, it could continue to support margins in the Own Fleet segment 1.
- Scarcity of Tier 1 rigstailwind
The limited supply of high-specification harsh-environment units and high entry barriers support the company's contract terms 1. This factor is positive while demand remains high 1.
- Oil and gas price volatilityheadwind
The offshore drilling industry is cyclical and influenced by oil and gas prices, global economic conditions and operators' capital expenditure decisions 1. If hydrocarbon demand weakens, re-contracting the units could become more difficult 1.
- Delayed international demandmixed
Tendering in Namibia and Canada has increased, but project maturity is expected only in 2027–2028, so the benefits are deferred 1. The effect may be mixed depending on how quickly projects materialise 1.
Competitive position
Odfjell Drilling operates in a sector where offshore drilling contracts are contested, and its customers are mainly large international and national oil companies 1. The competitive advantage cited by the company rests on its high-specification harsh-environment fleet and high contractual coverage 1.
High entry barriers on the Norwegian Continental Shelf limit the number of participants able to offer Tier 1 rigs, which protects the company's position in that market 1. Sector consolidation during 2025 also reduced oversupply 1.
- Harsh-environment offshore rig operators
Competitors offering comparable units for Norwegian Continental Shelf contracts; the source does not name them, so no ticker is given.
- Rig operators active in Namibia and Canada
Participants in the international tenders where the company observed rising activity in 2025; the source does not name them.
- Oil companies using in-house drilling capacity
Operators that might prefer other contracting models or own capacity; the source gives no details.
- Other offshore drilling service providers
Providers competing for the same large clients in tender situations; the source does not identify them.
News & filings
In the press
- Odfjell secures $518m contract for Deepsea Bergen from Vår EnergiYahoo Finance — News · 10 Sept 2026 · EN
Annual reports (ESEF)
- Annual report 202521 Oct 2026
- Annual report 202521 Oct 2026
- Annual report 202421 Oct 2026
- Annual report 202421 Oct 2026
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Odfjell Drilling Ltd · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.