SLB Halts Shipments to Russia From all of Its Operations
SLB (SLB) announced that it is halting all shipments of products and technology to Russia from all its operations due to the continuous expansion of Western sanctions. It was one of the few providers to continue working in the country's oil sector following Russia's invasion of Ukraine. With the most recent embargo, more countries are now subject to restrictions that have been in place since 2022.
Management stated that the company takes its responsibility to comply with export control and economic sanction laws quite seriously. It also added that SLB remains aligned with the international community in condemning and calling for an end to the war in Ukraine. The company said that the Russia ban now applies to all its worldwide operations, and is not just restricted to the United Kingdom, the United States, the European Union and Canada.
In order to comply with Western prohibitions on the transfer of oil equipment and technology, SLB reportedly changed its business operations earlier this year, per media reports. As part of the transformation, employees in Russia were denied access to specific communications and software platforms, and the unit was walled off from other activities.
Since the Russian invasion of Ukraine in February 2022, the firm has faced criticism for continuing to operate in the country's oil industry.
Zacks Rank & Key Picks
SLB is the world's largest oil service and equipment provider. Currently, it carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and Murphy USA MUSA. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and Murphy USA carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward earnings estimate revision for 2023 and 2024.
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