0943 GMT - China Oilfield Services is unlikely to be significantly affected by another round of suspensions from Saudi Aramco, Citi analysts Desmond Law and Oscar Yee write in a research note. The company has four ongoing contracts with the Saudi oil giant, but drilling services accounted for just 14% of its earnings before interest and taxes, they note. The analysts maintain a buy rating and a target price of HK$10.70 on the stock, adding that while suspensions may cause some negative sentiment, they expect COS to trade above its typical price-to-book range due to improving supply-demand dynamics in offshore drilling and rising drilling day rates. Shares last closed 2.1% lower at HK$6.67, bringing year-to-date losses to 16%. (ben.otto@wsj.com; @benottoWSJ)
(END) Dow Jones Newswires
December 10, 2024 04:43 ET (09:43 GMT)
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