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SLB wins enhanced Equinor contract for Troll field

EditorIsmeta Mujdragic
Published 05/24/2024, 11:22 AM
© Reuters.

HOUSTON - SLB (NYSE: SLB) has secured an expanded contract with Equinor for the second stage of Phase 3 at the Troll field in the North Sea, offshore Norway. The award, announced today, builds on a pre-existing long-term agreement and aims to expedite the subsea tieback to existing infrastructure.

SLB's OneSubsea joint venture will utilize North Sea's compliant, configurable solutions to accelerate the production of approximately 55 billion standard cubic meters of gas from the reservoir. The enhanced scope of the contract includes nine standard NCS2017+ vertical trees, wellheads, tubing hangers, subsea control modules, compact bridge modules with wet gas flow meters, two 4-slot templates, topside controls integration, and two umbilicals.

Mads Hjelmeland, CEO of SLB OneSubsea, expressed gratitude for the longstanding collaboration with Equinor and the opportunity to continue working together on the Troll field. He highlighted the importance of the frame agreement, initiated in 2017, as a means to create joint value and facilitate collaborative solutions.

The Troll field, situated in the northern part of the North Sea, is a significant project for Equinor and the expanded contract further establishes SLB OneSubsea’s position as a key supplier. The 8-well project, including a tieback to the Troll A Condeep platform, exemplifies the ongoing partnership under the collaborative frame agreement.

SLB is a global technology company focused on driving energy innovation, with a presence in over 100 countries. The company is involved in innovating oil and gas, delivering digital solutions at scale, decarbonizing industries, and developing new energy systems that support the energy transition.

This announcement is based on a press release statement.

InvestingPro Insights

SLB (NYSE: SLB) has recently demonstrated its resilience and commitment to innovation in the energy sector with the expansion of its contract with Equinor. This move not only solidifies SLB's strategic position but also aligns with its financial metrics and market performance. As of the last twelve months leading up to Q1 2024, SLB has reported a revenue growth of 13.02%, underscoring its capacity to scale operations and respond to market demands. The company's operating income margin during the same period stands at a robust 16.71%, reflecting efficient management and a strong competitive edge.

Investors may take note of the company's P/E ratio, which at 15.49, trades at a premium relative to its near-term earnings growth. This suggests that the market has high expectations for SLB's future profitability. An InvestingPro Tip that stands out is SLB's track record of maintaining dividend payments for an impressive 54 consecutive years, offering a dividend yield of 2.37% as of the current date. This level of consistency is a testament to the company's financial stability and commitment to shareholder returns.

For those looking to delve deeper into SLB's financial health and future prospects, there are additional InvestingPro Tips available, including insights into the company's debt levels, gross profit margins, and earnings predictions. For instance, while SLB suffers from weak gross profit margins, analysts predict the company will remain profitable this year, having been profitable over the last twelve months. In total, there are 9 additional InvestingPro Tips that can be accessed, providing a comprehensive analysis of SLB's financial and operational outlook. Interested readers can explore these tips further by visiting https://www.investing.com/pro/SLB and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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