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Chevron Affiliate Terminates FPSO Order for Rosebank Field
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U.S.energy behemoth Chevron Corporation (CVX - Free Report) recently terminated a $1.8 billion floating production and storage offloading (FPSO) newbuild order to Hyundai Heavy Industries. This unit was destined to be used on Chevron’s Rosebank deepwater project in the U.K. North Sea.
In Apr 2013, Chevron’s subsidiary – Chevron North Sea Ltd. – had placed an order for the 99,750 ton FPSO unit under a $1.9 billion contract. The unit was scheduled to be delivered by the end of Nov 2016. However, the company cited unfavorable oil prices as the reason for the order termination.
The FPSO unit had the capability to drill 100,000 barrels per day of oil and 80 million cubic feet per day of natural gas. The FPSO would have been among the deepest-moored vessels on the U.K. continental shelf. The vessel was designed to survive severe storms, including waves up to 100 feet.
San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas firms in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.
Year to date, the Zacks categorized International Oil and Gas Integrated industry has registered an impressive growth of 14.41%. However, the Chevron stock has outperformed the industry by gaining 27.21%.
This is because Chevron – one of the most oil-weighted majors – is poised to benefit from the recent OPEC deal and the subsequent advancement of crude. As it is, the company has been able to boost returns and remain competitive by embarking on aggressive cost-reduction initiatives. However, Chevron is experiencing signs of weakness in the refining business on fuel oversupply and weak demand.
As a result, Chevron currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Ocean Rig UDW LLC and McDermott International Inc. . Braskem and McDermott sport a Zacks Rank #1(Strong Buy), whereas Ocean Rig carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ocean Rig, on the other hand, delivered an average positive earnings surprise of 66.39% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
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Chevron Affiliate Terminates FPSO Order for Rosebank Field
U.S.energy behemoth Chevron Corporation (CVX - Free Report) recently terminated a $1.8 billion floating production and storage offloading (FPSO) newbuild order to Hyundai Heavy Industries. This unit was destined to be used on Chevron’s Rosebank deepwater project in the U.K. North Sea.
In Apr 2013, Chevron’s subsidiary – Chevron North Sea Ltd. – had placed an order for the 99,750 ton FPSO unit under a $1.9 billion contract. The unit was scheduled to be delivered by the end of Nov 2016. However, the company cited unfavorable oil prices as the reason for the order termination.
The FPSO unit had the capability to drill 100,000 barrels per day of oil and 80 million cubic feet per day of natural gas. The FPSO would have been among the deepest-moored vessels on the U.K. continental shelf. The vessel was designed to survive severe storms, including waves up to 100 feet.
San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas firms in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.
Year to date, the Zacks categorized International Oil and Gas Integrated industry has registered an impressive growth of 14.41%. However, the Chevron stock has outperformed the industry by gaining 27.21%.
This is because Chevron – one of the most oil-weighted majors – is poised to benefit from the recent OPEC deal and the subsequent advancement of crude. As it is, the company has been able to boost returns and remain competitive by embarking on aggressive cost-reduction initiatives. However, Chevron is experiencing signs of weakness in the refining business on fuel oversupply and weak demand.
As a result, Chevron currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Ocean Rig UDW LLC and McDermott International Inc. . Braskem and McDermott sport a Zacks Rank #1(Strong Buy), whereas Ocean Rig carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ocean Rig, on the other hand, delivered an average positive earnings surprise of 66.39% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>