Yahoo Finance Equinor (EQNR) Taps Vallourec for 5-Year Tubular Solutions Deal
Equinor ASA EQNR, the Norwegian state-owned energy giant, has signed a significant five-year contract with Vallourec, a global leader in premium seamless tubular solutions, in Brazil. This agreement includes the turnkey supply of premium tubes, connections, accessories and comprehensive services, reinforcing Vallourec’s long-standing relationship with Equinor, one of Brazil’s largest oil producers.
Key Details of the Contract
Vallourec's high-performance, low-carbon oil country tubular goods (OCTG) solutions are set to play a pivotal role in the development of Equinor’s Bacalhau and Raia fields in the pre-salt region, as well as the Peregrino field in the post-salt area. These projects align with Equinor’s Energy Transition Plan, which is aimed at attaining net zero emissions by 2050.
The contract also includes innovative digital solutions and Vallourec’s full suite of tubular management services. These services are designed to enhance the efficiency of both onshore and offshore operations, ultimately reducing the total cost of ownership for Equinor.
Local Production and Strategic Importance
The production and service delivery will be managed by Vallourec's premium hub in Brazil, which includes the Barreiro and Jeceaba plants in Minas Gerais and the Vallourec Tubular Solutions integrated services center in Macae. This local production strategy ensures a high degree of local content and an optimized supply chain, catering precisely to Equinor’s operational needs.
Bertrand Frischmann, chief operating officer of the Americas and a member of Vallourec's executive committee, highlighted the decade-long partnership with Equinor, emphasizing the role of Vallourec's expertise and high-value products in supporting EQNR’s operations. He noted that the comprehensive OCTG offering should enable Equinor to manage demanding pre-salt fields, showcasing Vallourec's excellence in Brazil.
The first product deliveries under this contract are anticipated in the second half of 2025, marking the beginning of a new chapter in Vallourec and Equinor’s collaborative efforts to drive innovation and sustainability in the energy sector.
Zacks Rank & Key Picks
Equinor currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Sunoco LP SUN and SM Energy Company SM, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.07. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.63. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
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