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Equinor (EQNR) Extends Waste Management Contract With Soiltech

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Equinor ASA (EQNR - Free Report) , the Norwegian state-owned energy giant, has opted to extend its drilling waste management contract with a local cleantech service provider, Soiltech, marking a significant stride toward pursuing sustainable operations in the North Sea.

The extension includes Equinor exercising its first option to prolong the drilling waste management contract for a platform in the North Sea with Soiltech. The contract, now extended for two years, will be effective from Jun 1, 2024, to May 31, 2026. Equinor further retains the option to extend the agreement until 2034, demonstrating a long-term commitment to environmental stewardship and efficient operations.

Soiltech has been on a winning streak, securing contracts for various projects in the energy sector. Just three months ago, it clinched a contract for cuttings handling services on Equinor's Oseberg South platform, slated to commence in the first quarter of 2024.

Under the extended agreement, Soiltech will provide Equinor with comprehensive waste management solutions, including slop treatment, cuttings handling, swarf treatment and cleaning services. The company will deploy its innovative technologies on Equinor's fixed installations and mobile drilling units, contributing to enhanced operational efficiency and reduced environmental impact.

Jan Erik Tveteraas, CEO of Soiltech, expressed gratitude toward Equinor for the continued trust. He also emphasized the dedication of Soiltech's personnel to delivering safe and technologically advanced solutions. Tveteraas highlighted Soiltech's commitment to driving decarbonization efforts within the energy sector while concurrently optimizing costs for its clients.

Equinor's recent contract extensions with various service providers underscore its commitment to sustainable operations and technological advancement in the energy sector. In addition to extending its partnership with Soiltech, Equinor has renewed drilling-related contracts with Shelf Drilling, Archer, KCA Deutag Drilling Norway and Odfjell Operations, reinforcing its strategic focus on operational excellence and environmental responsibility.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the energy sector are Murphy USA Inc. (MUSA - Free Report) , Global Partners (GLP - Free Report) and Sunoco LP (SUN - Free Report) . While Murphy USA and Global Partners sport a Zacks Rank #1 (Strong Buy) each, Sunoco LP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.40. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2024 and 2025.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $4.99. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.

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