National-Oilwell Varco, Inc. (NYSE:NOV) announced that it is expanding the operations of its Fiber Glass Systems business unit with a new composite pipe manufacturing facility located near the city of Dammam, Saudi Arabia.
“Our decision to localize manufacturing operations in the Kingdom of Saudi Arabia demonstrates our commitment to provide industry-leading products and services for our customer base in the Middle East,” commented Clay Williams, NOV’s Chairman, President and CEO. “We have collaborated with key regional clients who recognize the benefits of composite line pipe in critical, high-pressure oil and gas applications and who value NOV’s strong regional presence.”
The facility will establish NOV as Saudi Arabia’s first local manufacturer of high-pressure spoolable composite pipe and will further enhance the Company’s ability to provide lightweight, corrosion-resistant, engineered solutions from its global team of experts supported by 12 manufacturing facilities around the world.
The new, state-of-the-art, manufacturing complex will produce spoolable and jointed pipe, including the flagship line of Fiberspar spoolable products, STAR Glass Reinforced Epoxy high pressure line pipe, and downhole tubing and casing. Operations are expected to begin in the first quarter of 2018. (Original Source)
Shares of National-Oilwell Varco closed yesterday at $38.85, up $0.05 or +0.13%. NOV has a 1-year high of $43.63 and a 1-year low of $25.74. The stock’s 50-day moving average is $36.46 and its 200-day moving average is $34.81.
On the ratings front, National-Oilwell Varco has been the subject of a number of recent research reports. In a report issued on November 15, Jefferies Co. analyst Brad Handler reiterated a Hold rating on NOV. Separately, on November 8, FBR’s Tom Curran reiterated a Buy rating on the stock and has a price target of $38.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brad Handler and Tom Curran have a yearly average loss of -2.5% and a return of 6.5% respectively. Handler has a success rate of 46% and is ranked #3758 out of 4289 analysts, while Curran has a success rate of 56% and is ranked #663.
Sentiment on the street is mostly neutral on NOV stock. Out of 8 analysts who cover the stock, 5 suggest a Hold rating , 2 suggest a Sell and one recommends to Buy the stock. The 12-month average price target assigned to the stock is $30.75, which implies a downside of 21% from current levels.
National Oilwell Varco, Inc. provides equipment and components that are used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company operates through the following segments: Rig Systems, Rig Aftermarket, Wellbore Technologies, and Completion and Production Solutions. The Rig Systems segment designs, manufactures, and sells land rigs, offshore drilling equipment packages, including installation and commissioning services, and drilling rig components that mechanize and automate the drilling process and rig functionality. The Rig Aftermarket segment provides spare parts, repair, and rentals as well as technical support, field service, and first well support, field engineering, and customer training. The Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling operations, and offers services that optimize their performance. The Completion and Production Solutions segment integrates technologies for well completions and oil and gas production.