Tommy, would like your thoughts on Northern Ocean’s Mira contract to Shell in Trinidad and then share offering & debt restructuring. If Shell exercises the 1Y option, seems like NOL is in a much more comfortable position into 2028 and beyond, despite the immediate share price hit.
NOL gets good term if the option is exercised. NOL has a good asset and leadership, but as a single-rig company it carries an inherently high cost of capital while having periodic needs for capital, which can lead to dilutive issuances as we saw. It's a tough structure to make work. If Mira can get a long-term contract in Norway, it has valuation upside.
Tommy, would like your thoughts on Northern Ocean’s Mira contract to Shell in Trinidad and then share offering & debt restructuring. If Shell exercises the 1Y option, seems like NOL is in a much more comfortable position into 2028 and beyond, despite the immediate share price hit.
NOL gets good term if the option is exercised. NOL has a good asset and leadership, but as a single-rig company it carries an inherently high cost of capital while having periodic needs for capital, which can lead to dilutive issuances as we saw. It's a tough structure to make work. If Mira can get a long-term contract in Norway, it has valuation upside.