West Texas Intermediate rose 4.72% to $46.63 at 2:11 p.m. in New York. Brent was up 4.34% to $51.26.
Analysts attributed the bounce to technically directed trading as the market recovered from trading below $44 a barrel Thursday and set a new nearly six-year low at settlement, the Wall Street Journal said.
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"We see ongoing headwinds for oil prices," Citigroup analyst Tim Evans told the Journal. "Optimists may view the price performance in the face of bearish news as an encouraging sign, but we continue to see near-term downside risks," Evans added.
Separately, the oil services giant recently said it plans to buy a 45.65% stake in Eurasia Drilling Co. for about $1.7 billion, potentially paving the way for it to become the sole owner of Russia's most active oilfield services company, Reuters reported.
TheStreet Ratings team rates SCHLUMBERGER LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHLUMBERGER LTD (SLB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $3,889.00 million or 1.01% when compared to the same quarter last year. In addition, SCHLUMBERGER LTD has also modestly surpassed the industry average cash flow growth rate of -4.20%.
- Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.32 is sturdy.
- SCHLUMBERGER LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SCHLUMBERGER LTD reported lower earnings of $4.30 versus $5.11 in the prior year. For the next year, the market is expecting a contraction of 10.2% in earnings ($3.86 versus $4.30).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Energy Equipment & Services industry. The net income has significantly decreased by 81.8% when compared to the same quarter one year ago, falling from $1,664.00 million to $302.00 million.
- You can view the full analysis from the report here: SLB Ratings Report