Schlumberger’s one-week returns
Schlumberger’s (SLB) one-week returns were 1.0% until March 29, 2018. Since March 23, 2018, the Energy Select Sector SPDR ETF (XLE) has increased 1.0%. XLE tracks an index of US energy companies. The VanEck Vectors Oil Services ETF (OIH) witnessed -1.1% one-week returns. OIH tracks an index of 25 OFS (oilfield equipment and services) companies. So, Schlumberger outperformed OIH but performed in line with XLE in the past week. Schlumberger has underperformed the SPDR S&P 500 ETF (SPY) since March 23, 2018. SPY has produced 2.0% returns in the past week. Schlumberger accounts for 0.41% of SPY.
Crude oil’s price and rigs
On March 29, 2018, the WTI (West Texas Intermediate) crude oil price was 1.4% lower compared to a week ago. Led by crude oil price’s weakness, three rigs went offline in the US in the past week until March 29, 2018. To learn more, read Oil Could Impact Your Energy Portfolio.
Recent factors impacted Schlumberger’s returns
- On March 27, 2018, Schlumberger introduced its new perforating gun system. The system combines a plug-in gun design with real-time advanced downhole measurements that will help boost reservoir productivity.
- On February 21, 2018, Schlumberger received a project award from upstream producer Noble Energy (NBL). Schlumberger will provide an engineering and supply contract for a process module to be installed on the Leviathan Platform in the Eastern Mediterranean.
- On February 23, 2018, Schlumberger entered into a negotiation to form a joint venture with Subsea 7. The joint venture will be owned 50% by Subsea 7 and 50% by Schlumberger. If the joint venture is formed, it’s expected to strengthen the front end engineering, design, and execution of integrated projects.
- An additional pressure pumping fleet was redeployed following strong hydraulic fracturing activity in North America.
In this series
In this series, we’ll discuss Schlumberger and its correlation with crude oil. Next, we’ll discuss Schlumberger’s stock price.