Equinor ASA ( EQNR Quick Quote EQNR - Free Report) gave two contracts to Odfjell Drilling to perform drilling activities in the North Sea.
In March 2023, oilfield service provider Odfjell Drilling signed two letters of intent for its semi-submersible drilling rig — Deepsea Atlantic. The latest contracts are related to the letters of intent Odfjell Drilling issued earlier this year.
Deepsea Atlantic is a sixth-generation deepwater and harsh environment semi-submersible unit. It is capable of operating in water depths of up to 3,000 meters. The unit is designed to operate in harsh environments, with a 7,500 MT loading capacity.
The rig contracts have a combined duration of 23 months. They are valued at $290 million, which excludes integrated services, upgrades, changes and mobilization expenses. Beside this, the contracts involve provisions for performance bonuses and fuel incentives.
Equinor and Odfjell Drilling also signed an agreement to focus on shared strategic relevance. The agreement will form the basis of a long-term partnership on crucial problems, with an emphasis on security, drilling efficiency and lower emissions.
Odfjell Drilling plans to begin work soon after completing the special periodic survey for the Deepsea Atlantic, which is planned for the first half of 2024. The Deepsea Atlantic is currently signed up to firm contracts until mid-2026, with possibilities that extend to 2029.
Odfjell Drilling mainly focuses on the continuous development of its strategies and technologies. Deepsea Atlantic is expected to continue working with Equinor under the new contract, which can see the rig in continuous operation until 2029. The contracts are expected to deliver strong cash flows.
Shares of Equinor have outperformed the
industry in the past three months. The stock has gained 4.6% against the industry’s 8.2% decline.
Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are
Evolution Petroleum Corporation ( EPM Quick Quote EPM - Free Report) , Oceaneering International, Inc. ( OII Quick Quote OII - Free Report) and Seadrill Limited ( SDRL Quick Quote SDRL - Free Report) , currently sporting a Zacks Rank of 1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the Zacks Consensus Estimate of 17 cents.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services. OII has a Zacks Style Score of A for Momentum and B for Growth.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1.12 and $1.29, respectively.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $2.93 and $4.01, respectively.