Shelf Drilling confirmed plans to float on the London Stock Exchange.
The international shallow water offshore drilling contractor will apply for admission of its ordinary shares to the standard listing segment of the Official List of the Financial Conduct Authority.
The firm, which amassed the largest fleet of 37ILC jackup rigs, recorded an adjusted revenue of $1.2billion last year. It’s current contract backlog for this year stands at $3.4billion.
Following IPO, Shelf Drilling plans to adopt a dividend policy with a pay-out ratio of 40% to 60% of net income.
Chief executive David Mullen said: “Shelf Drilling was conceived to provide customers with a unique service offering in shallow water drilling. We combine substantial scale of operations with a sole focus on the shallow water segment of the offshore drilling market and differentiate ourselves from the competitive landscape through the delivery of fit-for-purpose rigs, customised to be ideally suited for the environments in which we operate and the customer’s field development plans. For customers this provides both dependability and efficiency in operation – qualities that translate directly into their cash flows.
“Since its creation in 2012, Shelf Drilling has proven the appeal of this offering to customers with strong growth in revenues and the exceptional development of our contract backlog. Becoming a public company will further enable us to invest in the drilling services our customers seek and build sustainable, profitable growth in the world’s most prolific hydrocarbon-bearing shallow water basins.”
Chairman Sir Richard Olver added: “Shelf Drilling will bring to public equity investors the opportunity to invest in a strong, cash generative business with good forward visibility and growth potential. Since inception, the highly able Shelf Drilling executive team has delivered a tremendous result in building a strong presence among blue chip customers in several of the world’s most prolific production basins. Shelf Drilling is now a significant force in its markets and presents an investment proposition combining capital growth with an attractive dividend stream.”
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