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Statoil Alters Ownership in Offshore Wind Project in UK

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Statoil ASA (STO - Free Report) has inked an agreement with Innogy and SSE for swapping of equity interests in the Dogger Bank offshore wind development project.

The Dogger Bank development comprises of four offshore wind farm projects - Creyke Beck A and B and Teesside A and B. On completion of the transaction, Statoil and SSE will hold 50% each in Creyke Beck A and B and Teesside A, while Innogy will own 100% of Teesside B.

Being the world's largest offshore wind development, Dogger Bank has received consent for an agreed target installed capacity of 4.8 global wind (GW), with 1.2 approved for each of the four projects. Cumulatively, the Dogger Bank projects can supply renewable energy to about 5 million UK homes.

The UK is presented with an exceptional prospect in the form of Dogger Bank to build secure, sustainable and cost-competitive energy from its outstanding wind resource.

The asset forms a vital element in Statoil’s strategy to steadily complement its oil and gas portfolio with profitable renewable energy solutions.

All the three Dogger Bank projects that Statoil and SSE will own, are located between 125 and 195 kilometer off the east coast of Yorkshire. Each of them extends between 500–600 square kilometers.

The Sheringham Shoal and Dudgeon offshore wind farms, are located in the same area. Statoil, being the operator of both farms, can further improve competence and boost efficiency across projects.

Over the last three months, shares of Statoil have gained 5.1% compared with the industry’s increase of 0.2%.

Statoil currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Range Resources Corp (RRC - Free Report) , Braskem S.A. (BAK - Free Report) and TransCanada Corp. (TRP - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Range Resources delivered a positive earnings surprise of 250.00% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average negative earnings surprise of 94.22%.

Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.

TransCanada delivered a positive earnings surprise of 12.00% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 4.06%.

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