With an increased RBL facility in place and amended bond covenants (aligning the structure with the RBL), NOR’s covenant headroom seems satisfactory, hence we stick to a NAV-based TP and recommendation. However, taking into account i) the guidance given at the company’s market update earlier summer (in particular updating our opex and capex profiles) and ii) the possibility of somewhat higher CB dilution, we lower our TP to NOK 175 (270).
