Should You Book Profits In Helmerich & Payne Stock?

Should You Book Profits In Helmerich & Payne Stock?

After OPEC announced the lifting of mandatory production curtailments, benchmark prices have observed a correction with limited upside in the long term. Per the U. S. Energy Information Administration's STEO (short-term energy outlook), the WTI benchmark is likely to trend downward from $65/bbl in 2021 to $62/bbl in 2022. Despite rising production in the U. S. and other nations, upstream companies remain committed to cash preservation and capex curtailment measures. Thus, oil field service firms including Helmerich & Payne (NYSE: HP) are likely to observe slow top-line recovery. In Q3 2021, the company reported $332 million of total revenues, a decline of 51% over Q3 2019, as active rigs remained 44% lower. Our interactive dashboard analysis highlights Helmerich & Payne's stock during the 2008 recession vs now. Timeline of 2020 Crisis So Far: Helmerich & Payne's revenues declined by 28% from $2. 5 billion in 2018 to $1. 8 billion in 2020 as the pandemic led to a slump in demand and drove down benchmark prices. While the earnings margin fell further due to a $500 million impairment charge, the company's balance sheet shrunk by 17% (y-o-y) in 2020. Improvement in the company's finances largely depends on global crude oil