National Energy Services Reunited Corp. (NASDAQ:NESR) shares dipped, as the international, industry-leading provider of integrated energy services in the Middle East and North Africa region, today announced multiple, five-year Slickline contract awards in Kuwait and Oman.
Totaling US$200 million, the multiyear contracts represent new awards in a key growth service line within NESR's Drilling & Evaluation segment. Consistent with the expansion of evaluation services like Cased Hole Wireline and Surface Well Testing, these contracts underscore the "portfolio pull through" strategy in D&E, whereby leadership in a certain product or service, in one or two countries, is replicated across NESR's entire MENA footprint, particularly in its burgeoning share of rigless activity.
NESR CEO Sherif Foda commented, "These two new entries for NESR Slickline further our MENA leadership position in this demanding evaluation services space. Following our philosophy of expanding Slickline beyond its current stronghold in Saudi and Egypt, we are very pleased to see the segment extend into Oman and Kuwait for the first time, augmenting our already well-established business in these anchor countries.
“Besides volume, this brings geographic diversification to Slickline and a competitive advantage in being a top three provider of such services in the region."
NESR shares began trading Tuesday down 10 cents, or 1.6%, to $6.25.
