SLB.N Acquires Aker Carbon Capture to Bolster Decarbonization Efforts

authorIntellectia.AI2024-03-29
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SLB.N
Illustration by Intellectia.AI

Key Points

  • SLB.N is set to acquire an 80% stake in Aker Carbon Capture for $381.5 million, with additional payments contingent on performance.
  • The merger will create a new entity focused on large-scale industrial decarbonization services, aiming to reduce costs and expand market share.
  • SLB.N's strong financial performance and favorable analyst ratings indicate a positive outlook for the company's future.

In this news

In a strategic move to enhance its carbon capture capabilities, Schlumberger Limited (SLB) has announced the acquisition of an 80% stake in Aker Carbon Capture, a leader in the carbon capture sector. The deal, valued at 4.12 billion Norwegian Krone ($381.5 million), is set to propel SLB.N's position in the market by merging its existing carbon capture operations with Aker's, creating a new powerhouse in industrial decarbonization services. This merger is expected to reduce costs and expand SLB.N's customer base, thereby increasing its market share. The transaction is anticipated to be finalized by the end of the second quarter of 2024.

SLB.N's financial performance in 2023 has been robust, with a significant reduction in net debt by $1.4 billion and a return of $2 billion to shareholders through dividends and stock repurchases. The company's success has been driven by increased production, capacity additions in international and offshore markets, and heightened customer investment in digital technologies. As a result of these positive developments, SLB.N's stock has surged by 17.6% over the past year, and Wall Street analysts maintain a Strong Buy consensus rating on the stock, with an average price target of $67, indicating a 22.04% upside potential.

The acquisition of Aker Carbon Capture marks a pivotal moment for SLB.N, as it aligns with the global push towards decarbonization and the growing demand for sustainable energy solutions. By integrating Aker's expertise and technology, SLB.N is poised to become a leading provider of carbon capture solutions, offering significant value to its customers and shareholders. The company's forward-looking approach and financial strength suggest a promising future in the evolving energy landscape.

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