Oilfield services provider Oceaneering International, Inc. (NYSE:OII) recently announced that it has secured a three-year extension from Norwegian oil and gas company Statoil (OL:STL) ASA (NYSE:STO) for one of its oilfield business segments, Asset Integrity.
The agreement will grant Oceaneering the opportunity to develop and implement programs for inspection and maintenance for 14 Statoil facilities. The onshore and offshore facilities are located in Norway.
Programs' Specifications
Per Oceaneering, the programs that will be offered to Statoil will comprise the evaluation and reporting of integrity status and corrective measures. The programs will also cover non-destructive testing, video inspection, and measurement of vibration, thermography, and inspection of the heat exchanger.
According to Oceaneering, the extension of the Frame Agreement by Statoil reflects the solid long-term relationship between the companies. The deal also indicates Statoil’s confidence on Oceaneering's ability to offer secure, reliable, and efficient services. We expect the extension to boost Oceaneering’s earnings and help it turnaround from a net loss of $7.5 million, as reported in the first quarter of 2017.
The agreement also provides Statoil the option to include other fields to the work scope.
About the Company
Oceaneering is an advanced applied technology company that provides engineered services and hardware to customers who operate in marine, aerospace, and other harsh environments. The company supplies a broad range of integrated technical services to a wide array of industries and is one of the world's largest underwater services contractors. The company is headquartered in Houston, TX.
Price Performance
Oceaneering operates in the Zacks categorized Oil and Gas - Field Servicesindustry. The company’s shares have gained 4.92% over the last one month compared with the industry’s decrease of 1%.
Zacks Rank and Stocks to Consider
Oceaneering presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector include Delek US Holdings, Inc. (NYSE:DK) and Canadian Natural Resources Ltd. (TO:CNQ) . Both of these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings’ sales for the current year are expected to increase 73.24% year over year. The company recorded a positive average earnings surprise of 60.68% in the last four quarters.
Canadian Natural Resources’ sales for the current quarter are expected to increase 24.11% year over year. The company recorded a positive earnings surprise of 30.77% in the first quarter of 2017.
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Delek US Holdings, Inc. (DK): Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report
Oceaneering International, Inc. (OII): Free Stock Analysis Report
Statoil ASA (STO): Free Stock Analysis Report
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