Barclays on U.S. Oil Services & Drilling: With Large Tenders Mostly Awarded, International Pricing Poised to Move Higher
Tweet Send to a FriendGet Alerts STO Hot Sheet
Price: $22.27 --0%
Rating Summary:
8 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 13
Rating Summary:
8 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 13
Trade STO Now!
Barclays on U.S. Oil Services & Drilling: With Large Tenders Mostly Awarded, International Pricing Poised to Move Higher
Analyst, James C. West, said, "Statoil Awards Largely Wrap Up 2012 Big Tenders: Statoil (NYSE: STO) announced large oil service contracts for Baker Hughes (NYSE: BHI) and Schlumberger (NYSE: SLB) last week. Baker received a $500 million, two-year contract to provide integrated drilling services for 25 Statoil fields on the Norwegian continental shelf while SLB was awarded a four-year, $340 million wireline contract. We expect Statoil to award Halliburton new contracts in the coming weeks for some smaller service lines as well. The Statoil contracts follow large tenders and awards (or pending awards) from Petrobras in Brazil, Shell in Brunei and Petronas in Malaysia."
International Capacity Tightening: The "Big Four" turned in strong sequential growth in international volumes (+11% on average), and the companies appear incrementally more bullish as 2012 unfolds. Halliburton (NYSE: HAL) exhibited the strongest top-line growth in 2Q (+15% sequentially), with Weatherford (NYSE: WFT) (+14%) close behind. Schlumberger and Baker Hughes posted +9% and +6%, respectively. We expect volumes to finish the year up double digits over 2011 levels, consistent with our mid-year update to our E&P Spending Survey. We expect activity to be particularly strong in Brazil, Colombia, Argentina, Russia and the Middle East, including Saudi Arabia, Kuwait and Iraq.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, James C. West, said, "Statoil Awards Largely Wrap Up 2012 Big Tenders: Statoil (NYSE: STO) announced large oil service contracts for Baker Hughes (NYSE: BHI) and Schlumberger (NYSE: SLB) last week. Baker received a $500 million, two-year contract to provide integrated drilling services for 25 Statoil fields on the Norwegian continental shelf while SLB was awarded a four-year, $340 million wireline contract. We expect Statoil to award Halliburton new contracts in the coming weeks for some smaller service lines as well. The Statoil contracts follow large tenders and awards (or pending awards) from Petrobras in Brazil, Shell in Brunei and Petronas in Malaysia."
International Capacity Tightening: The "Big Four" turned in strong sequential growth in international volumes (+11% on average), and the companies appear incrementally more bullish as 2012 unfolds. Halliburton (NYSE: HAL) exhibited the strongest top-line growth in 2Q (+15% sequentially), with Weatherford (NYSE: WFT) (+14%) close behind. Schlumberger and Baker Hughes posted +9% and +6%, respectively. We expect volumes to finish the year up double digits over 2011 levels, consistent with our mid-year update to our E&P Spending Survey. We expect activity to be particularly strong in Brazil, Colombia, Argentina, Russia and the Middle East, including Saudi Arabia, Kuwait and Iraq.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
- Madison Square Garden (MSG) is a Stock to Own on Sport Team Value and Hidden Value of The Garden - Needham & Company
- Wells Fargo Starts Quintiles (Q) at Outperform
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
