General Electric Company (NYSE:GE) Oil & Gas has been awarded a four-year framework agreement to provide wellhead equipment and associated services to Statoil with the option of two, two-year extensions.
GE Oil & Gas will provide its DWHC MS-700 SFX and MS-800 SFX wellhead systems to Statoil. The wellhead systems are designed to be a holistic solution to address fatigue and improve operating life based on, field-proven solutions. The GE SFX (Standardized Fatigue Resistant Solution) wellhead systems will allow all year operations in regions with in harsh environments.
GE Oil & Gas’s SFX wellhead technology is designed to directly address concerns about fatigue in the subsea sector, as exploration has expanded into harsh and remote environments. The need for standardized and robust subsea equipment is growing, as highlighted in the recent Recommended Practice 0034 published by DNV GL. The RP, adopted for use in this agreement, contains requirements for qualification, manufacturing and testing of steel forgings, and is a significant step in increasing standardization of subsea equipment. As a result of alignment to the DNV practice along with design and material upgrades, SFX provides repeatable quality in a reduced lead time.
Rod Christie, CEO of Subsea Systems, GE Oil & Gas, said: “We are delighted to be teaming up with Statoil on this agreement, which further strengthens our relationship. With offshore operations moving into more extreme environments, the need for more cost-efficient and optimized solutions is paramount. Our equipment can lead the industry in extending the life of offshore assets.”
Equipment from GE Oil & Gas will be built in the company’s facilities in Montrose, UK, Houston, Texas, Batam, Indonesia and Jandira in Brazil. (Original Source)
Shares of General Electric closed yesterday at $24.55. GE has a 1-year high of $28.68 and a 1-year low of $19.37. The stock’s 50-day moving average is $25.40 and its 200-day moving average is $26.15.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on August 24, Deutsche Bank analyst John G. Inch maintained a Hold rating on GE, with a price target of $29, which implies an upside of 18.1% from current levels. Separately, on July 20, UBS’s Shannon O’Callaghan reiterated a Buy rating on the stock and has a price target of $32.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John G. Inch and Shannon O’Callaghan have a total average return of 11.5% and 16.4% respectively. Inch has a success rate of 78.6% and is ranked #664 out of 3752 analysts, while O’Callaghan has a success rate of 79.7% and is ranked #100.