NOV Inc. (NOV) inked a deal with COSCO SHIPPING Heavy Industry and Cadeler to provide two offshore wind installation vessels, which will be named Cadeler X-Class.
Shares of the U.S.- based multinational corporation that provides equipment and components to the upstream oil and gas industry have gained 3.6% over the past year.
With the industry-leading carrying capacity of more than 17,600 tons, the new hybrid Cadeler X-Class will be able to transport and install seven complete 15 MW turbine sets or five sets of 20-plus MW turbines.
Additionally, the capacity expansions will decrease the number of vessel trips and enhance installation speeds, leading to better project economics and a reduced carbon footprint from the installations.
On top of this, NOV’s jacking system will lift the vessel and cargo above the waterline, enabling the safe installation of wind turbines. Furthermore, its advanced technology will lead to fuel savings and reduced emissions.
Markedly, NOV is already supplying new heavy-lift cranes for Cadeler’s existing O-Class vessels. (See NOV stock charts on TipRanks)
With the addition of the new X-Class vessels, Cadeler’s fleet will become the industry leader in terms of loading capacity as well as capability to transport, service, and install the next generation of offshore wind turbines, the company said.
The first NG-20000X jack-up vessel, scheduled to be delivered in the third quarter of 2024, will be provided to RWE’s 1.4 GW Sofia wind park, one of the largest offshore wind farms in the world.
NOV CEO Clay Williams commented, “NOV is honored to partner with Cadeler and COSCO as we design and deliver the next generation of wind turbine installation jack-up vessels. These vessels, which will be a key part of the next stage in the evolution of offshore wind energy, are a perfect example of what comes from close collaboration with our customers and an unending desire to seek improvement.”
Citigroup analyst Scott Gruber recently decreased the price target on NOV from $18 to $17 (35.1% upside potential) but maintained a Buy rating on the stock.
Overall, the stock has a Moderate Buy consensus rating based on 3 Buys and 3 Holds. The average NOV price target of $16.80 implies 33.6% upside potential from current levels.
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