Equinor (EQNR) Awards 1.4GW Offshore Wind Contract to Hitachi
Equinor ASA EQNR awarded a contract to Hitachi Energy to provide electrical systems infrastructure for the MFW Baltyk II and MFW Baltyk III projects, two of the largest and most innovative offshore wind farms in Poland.
The projects, which are being developed in the Baltic Sea, are expected to generate an overall installed capacity of 1.44 gigawatts. Equinor will operate the projects throughout the development, construction and operating phases.
Per the contract, Hitachi will deliver the offshore wind projects’ electrical system design from the wind turbines to the joining point into the grid at the Slupsk-Wierzbiecino substation.
Beside this, Hitachi will provide the entire telecom network, overall power control system, all high-voltage equipment at the offshore substation and the onshore substation, and the turnkey delivery of the whole onshore substation. The contract will also cover the interface work at the grid connection in Slupsk.
Equinor will make a final investment decision for the Baltyk wind projects in 2024, with the first power expected to be transferred to the grid in 2027. Once online, the wind farms are expected to generate electricity to power more than two million Poland households.
The contract also involves system study analysis and incorporating all the required equipment of interfacing contractors. This will ensure that the wind farms are developed with a cost-effective and stable transmission system to meet all the Poland Grid Code demands.
With the projects, Equinor and partners expect to develop a local supply chain for electrical infrastructure to offshore wind farms in Poland.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has gained 5.9% compared with the industry’s 20.5% growth.
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Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding Corp. PUMP is an oilfield service provider operating primarily in the Permian Basin over west Texas and New Mexico. PUMP’s third-quarter 2022 earnings per share of 38 cents beat the Zacks Consensus Estimate of 36 cents.
PUMP is expected to see an earnings rise of 145.3% in 2022. As of Sept 30, ProPetro had $43.2 million in cash and cash equivalents, and total liquidity of $155 million. ProPetro’s balance sheet is debt-free, which provides a potential lifeline amid the difficult operating environment. The steep cutbacks to its capital budget further strengthen its financial position.
Oceaneering International, Inc. OII is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII’s third-quarter 2022 adjusted profit of 23 cents per share beat the Zacks Consensus Estimate of 13 cents.
OII is expected to see an earnings rise of 82.4% in 2022. For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.
Helmerich & Payne Inc. HP is a major land and offshore drilling contractor in the western hemisphere, having the youngest and most efficient drilling fleet. HP’s fiscal third-quarter 2022 adjusted profit of 27 cents per share beat the Zacks Consensus Estimate of 5 cents.
Helmerich & Payne is expected to see an earnings surge of 277.8% in 2022. HP boasts a strong balance sheet, carrying $542.3 million in long-term debt. The company’s debt-to-capitalization stands at just 16.6% compared with many of its peers that are hugely burdened with debts.
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