General Electric Company (NYSE:GE) Oil & Gas has signed a Master Service Agreement with Statoil for new subsea projects that will enable GE to continue to support the international energy company’s value creation in a low oil price environment.
The global agreement forms the basis for potential new contracts for subsea equipment and services on new projects and field developments. The contract is valid globally until 2025.
“We are pleased to have secured an agreement with Statoil that paves the way for further and deeper collaboration between the companies within the subsea segment in the next decade,” says Tom Huuse, Managing Director of GE Oil & Gas in Norway.
GE Oil & Gas recently delivered subsea production system equipment for Statoil’s Snøhvit gas field in the Barents Sea on the Norwegian Continental Shelf.
In today’s oil price environment, sustained focus on costs and efficiency will ultimately be the key to develop several currently marginal prospects and discoveries. GE and Statoil are already working closely together in the Power Collaboration initiative, which aims to accelerate the development of sustainable cost efficient energy solutions.(Original Source)
Shares of General Electric closed yesterday at $29.08. GE has a 1-year high of $31.49 and a 1-year low of $19.37. The stock’s 50-day moving average is $28.77 and its 200-day moving average is $27.85.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on January 26, Oppenheimer analyst Christopher Glynn reiterated a Hold rating on GE. Separately, on January 25, RBC’s Deane Dray reiterated a Buy rating on the stock and has a price target of $33.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Glynn and Deane Dray have a total average return of 13.4% and 1.3% respectively. Glynn has a success rate of 71.0% and is ranked #1 out of 3640 analysts, while Dray has a success rate of 56.3% and is ranked #1406.
The street is mostly Bullish on GE stock. Out of 11 analysts who cover the stock, 8 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $32.40, which implies an upside of 11.4% from current levels.