NEW YORK (AP) — Shares of oilfield services companies traded mostly higher on Thursday, as oil prices rose and Oceaneering International Inc. received a contract from Petroleo Brasileiro S.A.
The price of benchmark crude rose $1.25 to $103.95 a barrel in New York on rising stock prices and encouraging economic news.
Late Wednesday Oceaneering said that the contract, related to a development project off Brazil, added $70 million to its subsea products backlog.
Tom Curran of Wells Fargo Securities said in a client note that the deal means Oceaneering will supply 85 miles of thermoplastic subsea production umbilicals to Petrobas. The umbilicals are a bundling of hydraulic hoses and electrical or fiber optic cables used in petroleum production.
Curran said that Brazil is the biggest market for thermoplastic umbilicals and that Oceaneering has historically been a major player there, receiving a considerable amount of its business over the past decade.
Shares of Oceaneering rose $1.68, or 3.3 percent, to $52.68 in midday trading. Over the past year, the shares have traded in a range of $31.77 to $57.16.
In addition, Rowan Cos. said Thursday that it looking to change its corporate headquarters tom the U.K. from the U.S. The plan has already received approval from the company's board, but must receive shareholder approval at a special meeting scheduled for Monday.
Rowan said its board believes the move will enhance shareholder value by helping to improve its long-term competitive position as a contract driller. The company said it is also looking to move to Class A shares from American depositary shares. If it moves to a Class A structure, Rowan believes it could remain a member of the S&P 500 index.
The company's stock jumped $2.65, or 8.6 percent, to $33.65. They have traded in a 52-week range of $28.13 to $42.42.
Elsewhere in the sector, shares of Baker Hughes Inc. gained $1.16, or 2.9 percent, to $41.64. Halliburton rose 87 cents, or 2.7 percent, to $33, while shares of Schlumberger Ltd. added $1.61, or 2.4 percent, to $69.74.