We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Schlumberger (SLB) to Exit From OneLNG JV, Fortuna Project
Read MoreHide Full Article
Schlumberger Limited (SLB - Free Report) recently decided to break the OneLNG joint venture (JV) with Golar LNG Limited (GLNG - Free Report) , primarily due to financial delays. The JV was created to develop the offshore Fortuna LNG project in Equatorial Guinea, in association with Ophir Energy Plc . The project is located in the Block R, operated by Ophir.
Although the development plan of the project was ready way back, finding attractive debt financing for the project and finalizing on the investment decision got delayed. The JV was created in July 2016, in which Schlumberger holds 49% stake. The JV holds 66.2% interest in the Joint Operating Company — which was created to develop the offshore Fortuna FLNG project — and Ophir owns the rest of the stake. The total cost of the Fortuna project is anticipated to be around $2.1 billion.
The investment decision was supposed to be finalized in mid-2016 and got postponed several times since then. The project even received an ultimatum from the Equatorial Guinea authorities to speed up the process.
With oil price on the rise, the profitability of the project has increased. Yet, the final investment decision failed to meet the previously announced timelines. Focusing on the project would only block Schlumberger’s resources, which the company can use in other projects.
Price Performance
Houston, TX-based Schlumberger is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry. The company has lost 1.6% in the past year compared with 6.7% decline of its industry.
Zacks Rank and a Stock to Consider
Currently, Schlumberger has a Zacks Rank #3 (Hold).
London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 67.6%. In the last four reported quarters, the company delivered an average positive earnings surprise of 29.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Schlumberger (SLB) to Exit From OneLNG JV, Fortuna Project
Schlumberger Limited (SLB - Free Report) recently decided to break the OneLNG joint venture (JV) with Golar LNG Limited (GLNG - Free Report) , primarily due to financial delays. The JV was created to develop the offshore Fortuna LNG project in Equatorial Guinea, in association with Ophir Energy Plc . The project is located in the Block R, operated by Ophir.
Although the development plan of the project was ready way back, finding attractive debt financing for the project and finalizing on the investment decision got delayed. The JV was created in July 2016, in which Schlumberger holds 49% stake. The JV holds 66.2% interest in the Joint Operating Company — which was created to develop the offshore Fortuna FLNG project — and Ophir owns the rest of the stake. The total cost of the Fortuna project is anticipated to be around $2.1 billion.
The investment decision was supposed to be finalized in mid-2016 and got postponed several times since then. The project even received an ultimatum from the Equatorial Guinea authorities to speed up the process.
With oil price on the rise, the profitability of the project has increased. Yet, the final investment decision failed to meet the previously announced timelines. Focusing on the project would only block Schlumberger’s resources, which the company can use in other projects.
Price Performance
Houston, TX-based Schlumberger is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry. The company has lost 1.6% in the past year compared with 6.7% decline of its industry.
Zacks Rank and a Stock to Consider
Currently, Schlumberger has a Zacks Rank #3 (Hold).
Investors interested in the Energy sector can opt for a better-ranked stock in the same space like BP p.l.c. (BP - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 67.6%. In the last four reported quarters, the company delivered an average positive earnings surprise of 29.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>