NESR Bags $100M Contract Awards in North Africa

National Energy Services Reunited Corp. (NASDAQ: NESR) has bagged several contract awards worth over $100 million spanning over the next three years. Following the news, NSER shares jumped almost 6% during the pre-market trading session on January 3.

Details

Starting in 2022 and spanning over a 3-year period, the contracts are evenly split between production, drilling and evaluation segments in North African countries.

With the new awards, NESR will further expand into the evaluation service lines in Algeria and Egypt, as well as production services in Algeria.

Notably, NESR has undertaken several initiatives over the last couple of years enhancing the performance, scale, and depth of delivery on its existing and new contracts.

The company stated that it has gained market share in well testing and slickline services in Algeria, by adding fracturing and stimulation services.

Furthermore, the company won a huge cased-hole wireline and tubing-conveyed perforation services award for one of the major operators in Egypt.

Management Weighs In

NESR CEO, Sherif Foda, commented, “Consistent with our accretive expansion strategy, we are committed to growing our business and establishing strong, long-term anchor contracts that enable us to demonstrate superior service delivery and fit-for-purpose technology over multiple years.

He further added, “While the entire MENA region is poised for one of the strongest, multi-year upcycles that the industry has experienced in several decades, we believe that certain countries in North Africa will be no different, especially relative to the recent activity levels that were clearly impacted by the global pandemic over the past couple of years.”

Wall Street’s Take

Overall, the stock has a Strong Buy consensus rating based on 3 unanimous Buys. The National Energy Services Reunited stock prediction of $18 implies 90.5% upside potential from current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on NESR stock, compared to a sector average of 68%.

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