Q: Your analysis please, thanks.
5i Research Answer:
SDRL is an offshore contract drilling service for oil and gas companies. Margins look solid and growth had been strong up until the most recent two quarters. Outlook calls for significant EPS expansion over 2025 and 2026. It is not cheap at 22.6x forward earnings and drilling production/prices will be a key determinant to future growth. Due to its business model, of operating drillships, it could do better than traditional energy/drilling companies. We do think it is expensive right now but under the right environment it could do well.