U.S. Markets closed
  • Gold

    +2.70 (+0.15%)

    +0.0001 (+0.0116%)
  • 10-Yr Bond

    -0.0900 (-5.56%)
  • Vix

    +1.00 (+6.26%)

    -0.0002 (-0.0165%)

    -0.2020 (-0.1775%)

    -1,968.65 (-3.24%)
  • CMC Crypto 200

    -64.20 (-4.35%)
  • FTSE 100

    -24.35 (-0.33%)
  • Nikkei 225

    -272.58 (-0.94%)

Schlumberger (SLB) Wins $381.18-Million Award From ADNOC

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Schlumberger Limited SLB recently clinched a deal from Abu Dhabi National Oil Company (ADNOC). The oil and gas giant of UAE has awarded contracts worth $763.7 million for integrated rigless services, which will be carried out across six artificial islands located in the Upper Zakum and Satah Al Razboot fields near Abu Dhabi.

The move from ADNOC is expected to boost production capacity from the fields to 5 million barrels per day by 2030. It expects more than 80% of the award value to flow back to the country’s economy, which is recovering from the pandemic woes. The awards require a range of services like coiled tubing, equipment, well testing, wireline, simulation services, well integrity and others.

The portion of award received by Schlumberger is valued at $381.18 million. Another oil and gas equipment and service provider, Halliburton Company HAL received a $153.87 million worth of deal. ADNOC Drilling, wherein Baker Hughes Company BKR acquired a 5% stake in 2018, also received part of the award worth $228.71 million.

The award for Schlumberger and other companies reflects an improving international market condition. While tepid upstream investment in the domestic market prevails, the international market can drive growth for oilfield service providers through 2021-end and beyond. Regions like the Middle East, North Sea and others are expected to provide opportunities to companies with major global presence.

Earlier, Schlumberger stated that it foresees an increase in optimism for fuel demand recovery in 2021, thanks to the rolling out of coronavirus vaccines and economic stimulus measures. Schlumberger expects demand to increase by 2021-end. As such, the company expects international revenues to witness double-digit growth in second-half 2021.

Price Performance

The company has gained 35.4% in the year-to-date period compared with 13.5% rise of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Key Pick

Schlumberger currently has a Zacks Rank #3 (Hold). A better-ranked stock from the energy space is Murphy Oil Corporation MUR, having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Murphy Oil’s bottom line for 2021 is expected to surge 131.2% year over year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Schlumberger Limited (SLB) : Free Stock Analysis Report

Halliburton Company (HAL) : Free Stock Analysis Report

Murphy Oil Corporation (MUR) : Free Stock Analysis Report

Baker Hughes Company (BKR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research