Citigroup sees near-term challenge for oilfield services firms

NOV

10/12/2024 12:26

** Citigroup sees near-term challenge for oilfield services
(OFS) firms as the crude markets still appear well-supplied and
efficiency gains are impairing utilization rates
    ** Says this backdrop will slightly favor domestic OFS cos
over international cos, as production abroad likely lags
upstream capex and declines modestly next year
    ** Brokerage adds that Halliburton  HAL.N  and SLB  SLB.N 
present greater negative risk near-term  on the international
activity decline
    ** "Challenge for OFS is that the oil markets look well
supplied in 2025 with downside risk to oil prices" - Citigroup
says
    ** Brokerage slightly favors land drillers over offshore
drillers, given less negative revision risk and greater free
cash flow yields in 2025
    ** Citi cuts PT on NOV Inc  NOV.N  by $1 to $17 and SLB
 SLB.N  to $53 from $54

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))