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Repsol (REPYY) Extends Charter Contract for PSV Energy Swan

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Repsol Norge, a subsidiary of Spanish energy major Repsol (REPYY - Free Report) , has extended its contract for the platform supply vessel (“PSV”), Energy Swan. PSV Energy Swan was chartered for a period of two months. After the initial firm period, it had an optional two plus two months that Repsol Norge could choose to exercise.

PSV Energy Swan is operated by Norwegian vessel owner, Golden Energy Offshore. Golden Energy has mentioned that the extended duration of two months would be in direct continuation of the existing charter contract from 2023. The financial details of the deal have not been disclosed.

PSV Energy Swan is a large PSV/pipe carrier of an ST 216 design, which was built in 2015. It can accommodate 28 people. The Norwegian vessel owner and operator has informed that since all options under the Repsol Norge charter have now been exercised, the vessel can be availed for a new charter from May 1, 2024.

Golden Energy Offshore has recently signed a binding Memorandum of Understanding for obtaining four PSVs and one safety and standby vessel from the subsidiaries of the Netherlands’ Vroon Holding, in an attempt to expand its fleet of offshore supply vessels. The total consideration of the deal was $94 million.

Repsol Norge’s contract extension follows closely after Golden Energy Offshore secured additional work for two of its PSVs in the North Sea.

Zacks Rank and Key Picks

REPYY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Archrock Inc. (AROC - Free Report) and Helmerich & Payne (HP - Free Report) . Sunoco and Archrock presently sport a Zacks Rank #1 (Strong Buy) each, while Helmerich & Payne carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Helmerich & Payne is primarily involved in contract drilling of oil and natural gas, with operations in all major U.S. onshore basins, as well as in South America, Australia and the Middle East. In the past months, the company has secured eight new rig contracts with Saudi Aramco, expanding its presence in the Middle East. With plans to capitalize on unconventional drilling growth opportunities, the company’s outlook seems positive.

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