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Fly News Breaks for March 3, 2020
SLB
Mar 3, 2020 | 06:23 EDT
UBS analyst Amy Wong downgraded Schlumberger to Neutral from Buy with a price target of $30, down from $47. The analyst is turning "more cautious" on the company amid the challenging backdrop for oil services, noting that while consensus earnings have already been cut by about 2/3rds, they will continue to trend lower. Wong adds that Schlumberger should just be able to fund its dividend out of free cash flow, but warns that investors may not be pricing in a dividend cut, since the stock price retreat has taken the company's dividend yield to 7% vs. its historical average of 1.5%.
News For SLB From the Last 2 Days
SLB
Mar 27, 2024 | 19:34 EDT
SLB "announced an agreement to combine its carbon capture business with Aker Carbon Capture to support accelerated industrial decarbonization at scale. Bringing together complementary technology portfolios, leading process design expertise and an established project delivery platform, the combination will leverage ACC's commercial carbon capture product offering and SLB's new technology developments and industrialization capability. It will create a vehicle for accelerating the introduction of disruptive early-stage technology into the global market on a commercial, proven platform. Following the transaction, SLB will own 80% of the combined business and ACC will own 20%. The International Energy Agency (IEA) sees carbon capture, utilization, and sequestration playing a critical role in the net-zero transition-estimating that over one gigaton of CO2 per year will need to be captured by 2030, scaling up to over six gigatons by 2050. SLB will pay NOK 4.12 billion to purchase 80% of Aker Carbon Capture Holding AS, which holds the business of ACC, and will contribute the SLB carbon capture business to the combined entity. SLB may also make additional payments of up to NOK 1.36 billion over the next three years based on the performance of the business. The transaction is subject to regulatory approvals and is expected to close by the end of the second quarter, 2024."