Shopkeepers may have offloaded shares worth more than half a billion kroner in drilling company Borr Drilling. Analysts still think the stock is cheap.
Just under 7.6 million Borr Drilling shares changed hands at NOK 66.6 on Tuesday.
The American oil services giant SLB (formerly Schlumberger) was included in the list of shareholders updated at the end of 2022 with the corresponding number of shares.
E24 has been in contact with Pareto Securities, which brokered the ownership of the shares, but the brokerage house had no comment on the matter. SLB has not yet responded to our inquiries.
FinanceAffairs.com I mentioned it first.
The arrow falls
The big sell-off sends Borr Drilling to the top of Oslo Børs' most-traded stocks list on Tuesday morning.
The price fell by 3.6 percent to NOK 67.9. On Monday, the stock closed at NOK 70.45.
– We see this as people's fear. When they see what appears to be Schlumberger being sold, one might think it gives an indication of what they think of the market, Carnegie analyst Simen Lippestad tells E24.
The strength continues to increase
Investor Tor Olav Trøim bought 200,000 shares at a similar price, meaning he cashed out NOK 13.3 million for the shares. He also bought Bur shares last week. After the purchases, Trom owns about 16.2 million shares in Bor, which are now valued at more than NOK 1.1 billion.
– I think the share is cheap, Trom said in an interview with E24 at the DNB Energy and Shipping Conference last week.
Carnegie's Lippestad shares Tromm's view. He has a target price of NOK 105 per share.
“We said it was a buying opportunity when the news about Saudi Aramco was announced, and we still stand by that,” says Lippestad.
Borr Drilling's share price has fallen this year, especially in the wake of a message about curbing growth from Saudi oil giant Saudi Aramco.
Borr Drilling operates drilling rigs with exposure to the Middle East. According to a fleet overview as of February, Borr Drilling had three rigs working for Saudi Aramco.
Borr Drilling's market capitalization is approximately NOK 18 billion.
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