Yahoo Finance SLB and Aker Carbon Capture Finalize NOK 4.12B Joint Venture
SLB SLB, an American oilfield services company, and Norwegian carbon capture specialist Aker Carbon Capture (“ACC”) have finalized their joint venture (JV). This partnership includes ACC’s sale of 80% of its shares in Aker Carbon Capture Holding (“ACCH”) to an SLB subsidiary.
The transaction, initially announced in March, involves SLB paying NOK 4.12 billion (approximately $385.7 million) in cash for the majority stake in ACCH. SLB will also integrate its own carbon capture business into the JV, while ACC will retain a 20% ownership stake in ACCH.
Headquartered in Oslo, Norway, the new company aims to accelerate the adoption of carbon capture technologies for industrial decarbonization. It combines ACC's expertise in amine-based Advanced Carbon Capture technologies, such as Just Catch and Big Catch modular plant technologies for medium- and large-scale facilities and Just Catch Offshore for offshore gas turbines, with SLB's portfolio of technology solutions, including non-aqueous solvent and emerging sorbent-based offerings.
The JV will see changes in ACC’s executive leadership. Egil A. Fagerland, the current CEO of ACC, will become the CEO of the new JV. Idun Heier has been appointed as the new CFO, and Valborg Lundegaard, who served as ACC’s CEO from 2020 to 2023, will return to the role, stepping in from her position as a senior advisor. Employee representatives on ACC’s board of directors will also step down.
Fagerland emphasized the urgency and significance of pioneering approaches in combating climate change. He stressed that achieving net zero requires accelerating decarbonization efforts and advancing innovative technologies.
Meanwhile, Lundegaard celebrated ACC’s accomplishments, emphasizing the vital role played by its carbon capture plants across diverse industries. She highlighted the company’s pride in successfully delivering these projects, noting that each customer represents a significant leader in their respective fields and sets an example for others to follow.
This strategic alliance between SLB and ACC is poised to play a pivotal role in the global effort to reduce carbon emissions. By leveraging the companies’ combined strengths, the new entity is set to advance carbon capture technologies, providing scalable solutions that are crucial for achieving global net-zero goals.
Zacks Rank & Key Picks
Currently, SLB carries a Zack 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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