In today’s briefing:
- [Earnings Preview] Halliburton Expected to Post Subdued Q4 Results on Tepid Upstream Activity
- Venture Global (VG): Rich Valuation Marks Questions About Being Already Priced for Perfection
- EM Spreads – Weekly News & Views
- [Pre Earnings Options Flash] Schlumberger’s OI PCR Indicates Neutral Sentiment Ahead of Q4 Results
- Stella Chemifa (4109 JP) – Strong Earnings, Attractive Share Price
[Earnings Preview] Halliburton Expected to Post Subdued Q4 Results on Tepid Upstream Activity
- Halliburton’s revenue is projected to decline 1.7% YoY, with EPS down 18.6%, driven by subdued upstream activity induced by oil price volatility and weak global demand.
- Halliburton expects a 1%-3% QoQ revenue decline, and a 75-125 bps margin drop in its Completion and Production segment for Q4.
- In contrast, revenue from its Drilling and Evaluation (D&E) segment is forecasted to grow between 0% to 2%, with margins flat or improving by up to 50 bps.
Venture Global (VG): Rich Valuation Marks Questions About Being Already Priced for Perfection
- Largest Cash Raise for a company since July 2024 marking important event for Equity Capital Markets to start the calendar year
- Rising and volatile natural gas prices combined with rich valuation nearly prices company to perfection
- Deal color for potential price sensitive IPOs is crucial in determining near-term performance
EM Spreads – Weekly News & Views
- The LatAm Corporate Index widened by 4 bps to 317 bps in the week ended Wednesday, January 15, 2025.
- YPF Priced $1.1bn Bond Due 2034 at 8.5% Yield. PEMEX Commits to Settling Supplier Debts by March
- Moody’s Upgrades Ratings of Argentine Non-Financial Companies Following Country Ceiling Adjustment
[Pre Earnings Options Flash] Schlumberger’s OI PCR Indicates Neutral Sentiment Ahead of Q4 Results
- Schlumberger will report its Q4 earnings on 17/Jan, with revenue and EPS projected to rise sequentially and annually. Analysts hold a bullish outlook despite macroeconomic challenges.
- Schlumberger’s OI PCR at 0.70, signalling neutral sentiment, with an 80% IV percentile indicating high volatility.
- For the 17/Jan expiry, SLB’s OI shows calls concentrated at strikes 45, 47.5, and 50, while puts dominate at 37.5, 40, and 42.5, with lower put OI at key levels.
Stella Chemifa (4109 JP) – Strong Earnings, Attractive Share Price
- H1 FY2025/3 results review: In H1 FY2025/3, Stella Chemifa (hereafter, the Company) reported strong results, with net sales up 25.3% YoY to JPY 18,160 mn and operating profit up 94.3% YoY to JPY 2,180 mn.
- The boost in sales was driven by an increase in shipments in the semiconductor category, mainly for memory devices thanks to a recovery in market conditions, and an increase in shipments of enriched boron (energy category) for new nuclear facilities overseas.
- Operating profit rose substantially, as growth in shipments in the high purity chemicals business and an increase in volume in the transportation business offset the JPY 210 mn drag on profits stemming from the Company’s inability to fully reflect cost increases from higher anhydrous hydrofluoric acid prices, a key raw material, and the yen’s depreciation, onto its prices.
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