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Shelf Drilling (North Sea) (OSL:SDNS) Operating Income : kr61 Mil (TTM As of Dec. 2023)


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What is Shelf Drilling (North Sea) Operating Income?

Shelf Drilling (North Sea)'s Operating Income for the three months ended in Dec. 2023 was kr-38 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was kr61 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shelf Drilling (North Sea)'s Operating Income for the three months ended in Dec. 2023 was kr-38 Mil. Shelf Drilling (North Sea)'s Revenue for the three months ended in Dec. 2023 was kr321 Mil. Therefore, Shelf Drilling (North Sea)'s Operating Margin % for the quarter that ended in Dec. 2023 was -11.84%.

Shelf Drilling (North Sea)'s 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shelf Drilling (North Sea)'s annualized ROC % for the quarter that ended in Dec. 2023 was -3.25%. Shelf Drilling (North Sea)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -3.99%.


Shelf Drilling (North Sea) Operating Income Historical Data

The historical data trend for Shelf Drilling (North Sea)'s Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shelf Drilling (North Sea) Operating Income Chart

Shelf Drilling (North Sea) Annual Data
Trend Dec21 Dec22 Dec23
Operating Income
- 184.76 60.13

Shelf Drilling (North Sea) Quarterly Data
Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only 200.57 56.87 35.63 6.44 -37.98

Shelf Drilling (North Sea) Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was kr61 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Shelf Drilling (North Sea)  (OSL:SDNS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Shelf Drilling (North Sea)'s annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-151.912 * ( 1 - 1.77% )/( (4636.288 + 4546.791)/ 2 )
=-149.2231576/4591.5395
=-3.25 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5295.857 - 314.234 - ( 499.771 - max(0, 478.322 - 823.657+499.771))
=4636.288

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4979.317 - 283.779 - ( 292.218 - max(0, 449.404 - 598.151+292.218))
=4546.791

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Shelf Drilling (North Sea)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-173.012/( ( (4368.17 + max(-20.377, 0)) + (4288.331 + max(25.319, 0)) )/ 2 )
=-173.012/( ( 4368.17 + 4313.65 )/ 2 )
=-173.012/4340.91
=-3.99 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(309.944 + 0 + 13.942) - (314.234 + 0 + 30.029)
=-20.377

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(291.163 + 0 + 43.253) - (283.779 + 0 + 25.318)
=25.319

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Shelf Drilling (North Sea)'s Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=-37.978/320.702
=-11.84 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Shelf Drilling (North Sea) Operating Income Related Terms

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Shelf Drilling (North Sea) (OSL:SDNS) Business Description

Traded in Other Exchanges
N/A
Address
Lakes Towers, JLT, Floor 12, P.O. Box 212201, Jumeirah, Dubai, ARE
Shelf Drilling (North Sea) Ltd is a shallow-water offshore drilling contractor operating primarily in the North Sea. It is engaged in the provision of equipment and services for the drilling, completion and well maintenance of shallow water offshore oil and natural gas wells. The Group is primarily engaged in development and workover activity on producing assets, with a focus on shallow water operations in water depths of up to 500 feet.

Shelf Drilling (North Sea) (OSL:SDNS) Headlines

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