Schlumberger Ltd (NYSE)
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Schlumberger
is one of the largest oil service companies in the world and a member of the “big
four” global oil service companies. Its shares are trading 50% off their peaks
and are revering slower than shares of oil majors that are posting new price
records.
The reason
is some uncertainty in the sector as oil service companies’ revenues mostly
depend on capital expenditures of oil production companies. Whether the latter
are ready to invest more at the current circumstances remain a big question.
The U.S. Administration is draining its strategic oil reserves, lockdowns in
China have been eased but are not completely over yet, and a global recession
that could dump the demand for fuel is just around the corner. So, one may
think oil prices may fall below the levels of the beginning of 2022.
However,
investors are guided mostly by long term expectations. The situation may change
dramatically in 2023 as China is on the recovery path, while U.S. crude is being
exported outside its territory. Fears about a devastating recession might be
exaggerated, besides the demand for oil is not directly linked to economic
activity. Rising demand from countries in Latin America, Africa and India would
stimulate the output.
We may find
ourselves in the beginning of the upside cycle in the energy market. So,
investing in SLB stocks is seen to be quite attractive considering plans of its
management to raise dividend and restart buyback programs.
Schlumberger Ltd (NYSE)
Ticker | SLB |
Contract value | 100 shares |
Maximum leverage | 1:5 |
Date | Short Swap (%) | Long Swap (%) | No data |
---|
Minimum transaction volume | 0.01 lot |
Maximum transaction volume | 100 lots |
Hedging margin | 50% |