Q3FY2009 Oilfield services earnings preview: January 06, 2009

Q3FY2009 Oilfield services earnings preview Thanks to signing of contracts at higher rates and effective deployment of the assets, the companies in the oilfield services sector are expected to report an impressive performance for the third quarter of FY2009.  A substantial fall in the crude oil prices have increased the concerns relating to the slowdown and cuts in the exploration and production expenditures around the globe. This might affect the order inflows for companies in the sector going forward. Though the companies already have committed revenues from their assets for the next couple of years, the day rates are expected to soften amidst a global economic slowdown and lower viability for oil majors to explore oil at the prevailing price of oil.  We expect our universe to report an excellent top line growth of 86.4% and a bottom line growth of 73% for Q3FY2009. Moreover, the earnings visibility for the companies under our coverage appears to be very strong on the back of a strong order book and committed revenues. Also, the current valuations suggest that the stocks are available at a bargain with concerns clearly overdone for the sector.     Click here to read report:  Sharekhan Special

---

News, views and chilling images. If it matters for India, we bring it to your fingertips. Check it out!