Arctic Securities has initiated coverage of Pelican Aqua Holding with a Buy recommendation and a USD 2.25 target price, compared with a current share price of USD 1.50.
The bank said Pelican Aqua’s order for four 5,000m³ wellboats from CIMC Raffles at USD 64.5 million per vessel could give the company a structural cost advantage in a tight wellboat market. Comparable vessels at European yards currently cost about USD 100 million, Arctic said.
Arctic estimates the market will be short around 19 wellboats by 2029 under an 8% annual demand growth scenario. Even including Pelican Aqua’s four vessels, the deficit would remain about 15 boats.
Pelican Aqua: orders four wellboats ahead of planned Oslo listing
Under a 12% growth scenario, the shortfall would widen to 34 vessels, according to the bank.
Arctic forecasts Pelican Aqua generating EBITDA of about USD 40 million once all four vessels are delivered in 2029, against invested capital of roughly USD 270 million.
Pelican Aqua could become a takeover target for established wellboat operators if the first Chinese-built vessel proves commercially successful, according to Arctic.