Odfjell Technology (OTL)

Odfjell Technology (OTL)

In this financial analysis report analysts Gustav Hilmersson and Anton Saleem Almgren take a closer look at Odfjell Technology, a well-established player in the oil and gas energy industry that provides a wide range of services of oil platforms, including well services, drilling operations and projects & engineering. The analysts estimate a 2023-2027E CAGR of 15.7% and an EBIT margin expansion from 8.0% to 11.4% in 2024E, stemming from expected increases in crude oil prices. Additionally, key regions are currently affected by the Russian invasion of Ukraine, increasing energy demand in Europe leading to a growing market with increasing investments into offshore platforms. With a net cash position of NOKm 190, Odfjell Technology has low exposure to high interest rates. Relative peer and DCF valuation suggests a target price of NOK 75.6, implying an upside of 50.0%.

Investment highlights:

  • Well-positioned to leverage from increased oil demand
  • Historically resilient business with low exposure to interest rates and cyclicality
  • Strong market position with best-in-class capabilities, including a highly experienced management team

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