Oilfield services cos to benefit from rising investments - Brokerage

Sport Lisboa e Benfica Futebol SAD

19/01/2023 13:18

** Large oilfield services companies are in strong positions
to benefit from increased exploration and production spending in
the intermediate term, says the brokerage Benchmark
    ** "We are assuming oil company investment will increase by
15% in 2023 to $447 bln and by 10% in 2024 to $492 bln," the
brokerage notes
    ** The brokerage rates SLB NV  SLB.N  "buy", sets PT of $65 
    ** Benchmark says that SLB can achieve double-digit growth
in core earnings and free cash flow margin between now and 2025
    ** Halliburton Co  HAL.N  is also rated "buy", sets PT of
$50
    ** The brokerage sees HAL continue to generate 'industry
leading returns' in the U.S. frac market
    ** Benchmark begins coverage of Baker hughes Co  BKR.N  with
a PT of $36, gives co a "buy" rating
    ** "BKR is in a unique position to capitalize on the energy
transition given its strong technology portfolio in geothermal,
carbon capture, hydrogen and emissions management," the
brokerage notes
    ** BKR, HAL and SLB gained between 22.7%-78.5% last year
 (Reporting by Sourasis Bose in Bengaluru)
 ((Sourasis.bose@thomsonreuters.com))