Schlumberger’s one-week returns compared to industry
Schlumberger’s (SLB) one-week returns were 1.7% as of February 16, 2018. In comparison, since February 9, 2018, the Energy Select Sector SPDR ETF (XLE) rose 2.2%. The VanEck Vectors Oil Services ETF (OIH) saw 2.3% one-week returns. So, SLB underperformed OIH and XLE in the past week. SLB has also underperformed the SPDR S&P 500 ETF (SPY) since February 9, 2018. SPY has produced 4.4% returns in the past week. SLB accounts for 0.40% of SPY. SPY tracks the S&P 500 Index (SPX-INDEX). The SPX-INDEX has risen 4.3% in the past week.
Crude oil price and rigs
On February 16, 2018, the West Texas Intermediate (or WTI) crude oil price was 4.2% higher than it was a week ago. Despite crude oil price’s strength, no additional rigs came online in the US in the past one week until February 16, 2018. Learn the latest on energy prices in Market Realist’s Has Your Energy Portfolio Recovered with Oil’s Rise?
Some recent factors that affected SLB’s returns
- The company redeployed additional pressure pumping units following strong hydraulic fracturing activity in North America.
- Seasonal wireline activity fell in Russia.
- The company saw higher project volume and increased service revenue in the Cameron Group led by OneSubsea.
- On December 29, 2017, Schlumberger acquired Weatherford International’s (WFT) pressure pumping and pump-down perforating assets for $430 million. SLB and WFT also called off the earlier planned joint venture called OneStim. This move could result in additional market share for SLB in the hydraulic fracturing-related services.
In this series, we’ll look at Schlumberger and its correlation with crude oil. We’ll discuss Schlumberger’s stock price forecast next.