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HOUSTON - SLB (NYSE: SLB), a global energy technology company with a market capitalization of $47.24 billion and annual revenue of $36.07 billion, has announced the award of a significant engineering, procurement, construction, and installation (EPCI) contract for the Ginger project offshore Trinidad and Tobago. The contract was awarded by bp to SLB’s OneSubsea joint venture and Subsea7. This marks the first project award under a global framework agreement between bp and the Subsea Integration Alliance partners. According to InvestingPro data, SLB maintains a GOOD financial health score, suggesting strong operational capabilities for such major projects.
The Ginger project, situated off the southeast coast of Trinidad at depths of up to 90 meters, will benefit from SLB OneSubsea’s delivery of four standardized vertical monobore subsea trees and tubing hangers. These components are optimized for quick delivery and installation. Additionally, the project will feature the region’s first high-integrity pressure protection system (HIPPS) manifold, promising considerable safety, efficiency, and environmental advantages. The company’s strong execution capability is reflected in its impressive track record of maintaining dividend payments for 55 consecutive years, as noted in InvestingPro’s analysis.
Subsea7 is set to provide a diver-installed tie-in system, a flexible production flowline, and associated infrastructure. The collaboration under the framework agreement aims to enable system-level optimization through enhanced transparency and early engagement, along with a commercial model designed to align incentives for maximized value creation.
Mads Hjelmeland, CEO of SLB OneSubsea, expressed confidence in the new approach to subsea project performance, stating that the final investment decision (FID) for Ginger is a testament to the effectiveness of their joint efforts with bp. Olivier Blaringhem, CEO of Subsea Integration Alliance, echoed this sentiment, highlighting the project’s significance for their novel global framework with bp.
SLB, a global technology company trading at an attractive P/E ratio of 11.6, is focused on energy innovation for a balanced planet, with a presence in over 100 countries. OneSubsea, backed by SLB, Aker Solutions, and Subsea7, is driving a new subsea era with digital and technological innovation aimed at optimizing oil and gas production and accelerating the energy transition. InvestingPro analysis indicates that SLB is currently trading below its Fair Value, with analysts maintaining a strong buy consensus. For deeper insights into SLB’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The Subsea Integration Alliance combines the strengths of SLB OneSubsea and Subsea7 to offer integrated subsea solutions, including field development planning, EPCI contracting models, and total life cycle solutions.
This announcement is based on a press release statement.
In other recent news, Schlumberger NV (SLB) reported its financial results for the first quarter of 2025, revealing earnings per share (EPS) of $0.72, which fell short of the anticipated $0.74. The company’s revenue for the quarter was $8.49 billion, also missing the forecasted $8.64 billion. Despite these shortfalls, SLB’s digital revenue saw a significant year-on-year increase of 17%, highlighting strong demand in this segment. Stifel analysts adjusted their price target for SLB to $54, down from $58, while maintaining a Buy rating due to the company’s robust first-quarter performance and financial outlook for the year. The firm emphasized SLB’s strong free cash flow and commitment to returning at least $4 billion to shareholders in 2025. Analysts also noted SLB’s strategic focus on digital capabilities and production systems as key drivers of its solid financial performance. Additionally, SLB is anticipating the closure of the ChampionX acquisition in the second or early third quarter, which is expected to strengthen its market position. These developments reflect SLB’s strategies to navigate the current market environment and maintain shareholder value.
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