Independent energy firm
Talisman Energy Inc.
) - through its U.K. arm - awarded a multi-year contract, worth
£300 million, to French multinational company Sodexo.
CHINA PETRO&CHM (SNP): Free Stock Analysis
TALISMAN ENERGY (TLM): Free Stock Analysis
To read this article on Zacks.com click here.
The five-year agreement - involving food and facilities management
services - covers 11 offshore installations in North Sea along with
the Flotta terminal, Orkney and the Gyda installation off the coast
of Norway. The company's offices in Aberdeen are also part of the
A service solutions company - Sodexo has business ties with
Talisman over the past eight years. Sodexo stated that this
new contract - won through a competitive bidding process - will
generate about 300 jobs.
Calgary, Alberta-based Talisman exhibits a solid base business in
Western Canada and in the U.K. North Sea, as well as, has exposure
to some of the most prolific natural gas plays in North America and
high-impact exploration prospects worldwide.
In the U.K., Talisman operates in two core regions: the Northern
Business Area and the Central Business Area. The company's 2012
capital spending for U.K.-based projects is expected to be
approximately $800 million, with the primary targets being the
Monarb and Auk Area redevelopments.
In late July, Talisman entered into a deal with
China Petroleum and Chemical Corporation
), aka Sinopec for the sale of its 49% stake in the North Sea
assets for about $1.5 billion. The sale proceeds will raise
Talisman's divestment proceeds to around $2.5 billion, to be partly
utilized for repurchasing shares.
Over the last few years, Talisman has been disposing its non-core
oil and gas properties around the world, thereby freeing up capital
to concentrate on longer-term oil and gas prospects in prolific
regions across the globe such as Canada, the U.S. and Southeast
Talisman holds a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. Moreover, considering
the fundamentals on the long run, we maintain our Neutral
recommendation on the stock.