The oil & gas equipment & services industry dealing with several challenges – (HAL, SLB, WFT, BHI, SPN)

  on Oct 23,2012 Posted in Finance ,Investment Ideas
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The oil & gas equipment & services industry, which feature companies such as Baker Hughes Inc. and Halliburton Company, several challenges are currently threatening to put a curb on sales. A retard in the economy worldwide does not promise well, as it cause a decrease in energy demand. The industry is also facing a fall in the total number of the U.S. rig, which is also a concern.

Another issue being faced by the industry is oversupply. A number of industry players ordered significant amounts of equipment leading up to and during the natural gas boom in the U.S., but with many companies are reducing output due to low natural gas prices, supply is exceeding demand. With earnings season in full swing, investors paying attention have been able to get a better understanding of individual company performances.

Halliburton Company (NYSE:HAL) shares appeared 13.59% below their 52-week highs and have shown a low EPS growth of 9.55% in the last 5 years. The stock so far this year has gained 0.96% and is up 2.13% for the last five trades. HAL provides various products and services to the energy industry for exploring, developing, and producing oil and natural gas worldwide.

Schlumberger Limited. (NYSE:SLB) together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Schlumberger Limited has grown 8.32% this year and in the last five trades has moved up 0.55%. The stock’s price was 8.73% below their 52-week highs and showed a low EPS growth of 3.12% over the past five years.

Weatherford International Ltd (NYSE:WFT) was trading 34.32% below its 52-week best and its last 5-Year EPS growth stands at -23.04%. The stock has a year-to-date performance down -17.76% and a negative weekly performance at -1.31%. WFT provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide.

Baker Hughes Incorporated (NYSE:BHI) supplies oilfield services, products, and technology services and systems to the oil and natural gas industry worldwide. Baker Hughes Incorporated shares are trading 28.00% below the 52-week high and has displayed a negative EPS growth of -11.25% in last 5 years. Its share price has declined -8.62% this year and is down -2.07% for the last five trades.

Superior Energy Services, Inc. (NYSE:SPN) floats 35.98% below the 52-week top level and its EPS growth rate was -5.36% over prior 5 years. The stock has a year-to-date performance down -28.23% and positive at 1.64% in last five trading sessions. SPN provides specialized oilfield services and equipments to serve the production and drilling-related needs of oil and gas companies.

Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.



One Response to “The oil & gas equipment & services industry dealing with several challenges – (HAL, SLB, WFT, BHI, SPN)”

  1. ken says:

    The retard is not in the economy, he is in the White House.

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