After an impressive jackup sale at +70% above its implied value SDRL is set to become net cash and offer the cheapest rigs among peers at USD 202m per 7G (age adj). It is also becoming attractive on earnings with EV/EBITDA’23e of ~4x and EV/EBITDA’25e of ~3x, despite several of its rigs being contracted well below the current market rates. Hence, we find SDRL highly attractive and reiterate our Buy rec. and increase our NAV-based target price to NOK 500/sh (421).
