Schlumberger Limited (SLB - Free Report) recently decided to break the OneLNG joint venture (JV) with Golar LNG Limited (GLNG - Free Report) , primarily due to financial delays. The JV was created to develop the offshore Fortuna LNG project in Equatorial Guinea, in association with Ophir Energy Plc . The project is located in the Block R, operated by Ophir.
Although the development plan of the project was ready way back, finding attractive debt financing for the project and finalizing on the investment decision got delayed. The JV was created in July 2016, in which Schlumberger holds 49% stake. The JV holds 66.2% interest in the Joint Operating Company — which was created to develop the offshore Fortuna FLNG project — and Ophir owns the rest of the stake. The total cost of the Fortuna project is anticipated to be around $2.1 billion.
The investment decision was supposed to be finalized in mid-2016 and got postponed several times since then. The project even received an ultimatum from the Equatorial Guinea authorities to speed up the process.
With oil price on the rise, the profitability of the project has increased. Yet, the final investment decision failed to meet the previously announced timelines. Focusing on the project would only block Schlumberger’s resources, which the company can use in other projects.
Price Performance
Houston, TX-based Schlumberger is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry. The company has lost 1.6% in the past year compared with 6.7% decline of its industry.
Zacks Rank and a Stock to Consider
Currently, Schlumberger has a Zacks Rank #3 (Hold).
Investors interested in the Energy sector can opt for a better-ranked stock in the same space like BP p.l.c. (BP - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 67.6%. In the last four reported quarters, the company delivered an average positive earnings surprise of 29.6%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Schlumberger Limited (SLB - Free Report) recently decided to break the OneLNG joint venture (JV) with Golar LNG Limited (GLNG - Free Report) , primarily due to financial delays. The JV was created to develop the offshore Fortuna LNG project in Equatorial Guinea, in association with Ophir Energy Plc . The project is located in the Block R, operated by Ophir.
Although the development plan of the project was ready way back, finding attractive debt financing for the project and finalizing on the investment decision got delayed. The JV was created in July 2016, in which Schlumberger holds 49% stake. The JV holds 66.2% interest in the Joint Operating Company — which was created to develop the offshore Fortuna FLNG project — and Ophir owns the rest of the stake. The total cost of the Fortuna project is anticipated to be around $2.1 billion.
The investment decision was supposed to be finalized in mid-2016 and got postponed several times since then. The project even received an ultimatum from the Equatorial Guinea authorities to speed up the process.
With oil price on the rise, the profitability of the project has increased. Yet, the final investment decision failed to meet the previously announced timelines. Focusing on the project would only block Schlumberger’s resources, which the company can use in other projects.
Price Performance
Houston, TX-based Schlumberger is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry. The company has lost 1.6% in the past year compared with 6.7% decline of its industry.
Zacks Rank and a Stock to Consider
Currently, Schlumberger has a Zacks Rank #3 (Hold).
Investors interested in the Energy sector can opt for a better-ranked stock in the same space like BP p.l.c. (BP - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 67.6%. In the last four reported quarters, the company delivered an average positive earnings surprise of 29.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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