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Equinor (EQNR) Awards FEED Contract for Bay du Nord Project

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Equinor ASA (EQNR - Free Report) awarded a contract to KBR, Inc. (KBR - Free Report) for its Bay du Nord floating production, storage and offloading (“FPSO”) facility offshore Newfoundland and Labrador.

The agreement involves the front-end engineering and design (“FEED”) work of the topside facilities of Equinor’s new Bay Du Nord FPSO to be located offshore Newfoundland.

In 2022, KBR performed pre-FEED work on the Bay Du Nord project and will further develop the engineering and execution planning. Equinor may make a final investment decision in 2023, with the first production expected in the late 2020s.

KBR will continue to help Equinor develop one of the lowest carbon-emitting FPSOs in the world. KBR will utilize an onboard combined cycle power system and the latest technology to minimize the number of crew onboard and maximize digital solutions. This will help provide safe operations, while minimizing carbon emissions.

KBR will carry out the assigned work with Canada sub-contractor Hatch Ltd., an employee-owned multi-disciplinary engineering, project management and professional services firm. The companies will provide Equinor with an integrated team across Canada and London.

Discovered in 2013, Bay du Nord is situated in the Flemish Pass region off the coast of Newfoundland and Labrador. Once completed, it will be the first deepwater drilling site in Canada. The project operated by Equinor is expected to be valued at more than $12 billion.

Bay du Nord will be a key driver to help meet the global oil demand, while supporting the country's pledge to carbon neutrality by 2050. The project is also crucial to the Newfoundland and Labrador economy as it will provide significant employment and economic opportunities.

Price Performance

Shares of EQNR have underperformed the industry in the past six months. The stock has declined 14% against the industry’s 13.5% growth.

 

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Zacks Rank & Stocks to Consider

Equinor currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cactus, Inc. (WHD - Free Report) reported fourth-quarter adjusted earnings of 57 cents per share, beating the Zacks Consensus Estimate of 51 cents. The strong quarterly earnings were primarily driven by increased drilling activity by customers, offset partially by higher total expenses.

At the fourth-quarter end, Cactus had cash and cash equivalents of $344.5 million, which can provide it with immense financial flexibility. Cactus had no bank debt outstanding as of Dec 31, 2022.

Liberty Energy Inc.’s (LBRT - Free Report) fourth-quarter 2022 earnings per share of 82 cents handily beat the Zacks Consensus Estimate of 71 cents. The outperformance reflects the impacts of strong execution and increased service pricing.

As part of its shareholder return policy, LBRT repurchased $125 million of its stock at an average price of $15.29 a piece since July and reinstated a quarterly cash dividend of 5 cents per share in the fourth quarter.


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