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Petrofac Ltd. POFCY has announced a six-month contract extension with DDW Offshore for Skandi Emerald, an anchor-handling tug supply (AHTS) vessel. DDW Offshore, a subsidiary of Akastor, signed the preliminary contract with Petrofac in September 2022. In January 2024, POFCY had already extended the original one-year contract for Skandi Emerald.
Following the latest extension, the contract term has been prolonged until July 14, 2025. DDW Offshore mentioned that after the completion of this contract, the AHTS vessel will support a disconnection assignment for the Northern Endeavour FPSO offshore Australia. The Northern Endeavour FPSO is currently not producing oil and will be disconnected and decommissioned from any subsea infrastructure at the site.
The Northern Endeavour FPSO is anchored between the Laminaria and Corallina oil fields. The site lies approximately 550 kilometers toward the northwest of Darwin within the Timor Sea. The decommissioning contract was awarded in 2022. Following the award, Petrofac took over the operations of the AHTS vessel on behalf of Australia's government. As the outsourced operator of the vessel, Petrofac shall be responsible for the decommissioning of the FPSO and related subsea infrastructure from the seabed and the temporary suspension of the wells.
POFCY’s Zacks Rank and Other Key Picks
Currently, POFCY carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, providing a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.