Schlumberger’s 1-week returns compared to the industry
Schlumberger’s (SLB) one-week returns were 5.1% as of March 9, 2018. In comparison, since March 2, 2018, the Energy Select Sector SPDR ETF (XLE) rose 2.2%. XLE tracks an index of US energy companies. The VanEck Vectors Oil Services ETF (OIH) had a 4.1% one-week return. OIH tracks an index of 25 oilfield equipment and services companies. SLB thus outperformed OIH and XLE in the past week. SLB has also outperformed the SPDR S&P 500 ETF (SPY) since March 2, 2018. SPY has returned 3.6% in the past week. SLB accounts for 0.40% of SPY.
Crude oil price and rigs
On March 9, 2018, the price of WTI (West Texas Intermediate) crude oil was 1.3% higher than the previous week. Led by crude oil’s weakness, three additional rigs came online in the United States in the past week as of March 9, 2018. You can find out the latest on energy prices in Market Realist’s Why Broader Markets Are Important for Your Energy Portfolio.
What affected SLB’s returns?
Below are some recent factors that affected SLB’s returns:
- recent redeployment of additional pressure-pumping fleet following strong hydraulic fracturing activity in North America
- higher project volume and increased service revenue in the Cameron group, led by OneSubsea
- seasonal wireline activity decline in Russia
- negotiations on February 23, 2018, to form a joint venture with Subsea 7 (50% owned by Subsea 7 and 50% by Schlumberger), which, if formed, could strengthen the front-end engineering, design, and execution of integrated projects
- project award on February 21, 2018, from upstream producer Noble Energy (NBL) in which SLB will provide an engineering and supply contract for a process module to be installed on the Leviathan Platform in the Eastern Mediterranean
In this series, we’ll look at Schlumberger and its correlation with crude oil. Let’s start by looking at Schlumberger’s stock price forecast.