OIS - Oil States International: Shareholder Returns Finally Reinstated More Is Likely Coming

Summary

• Oil States International endured tough times during the past three years due to the severe downturn following the Covid-19 pandemic.
• After seeing a cash flow drought during 2021, their results during 2022 saw them turning a corner.
• As a result, their shareholder returns have been finally reinstated now in early 2023, thereby starting with a $25m share buyback program.
• Even though I suspect more is likely coming given their positive outlook and solid financial position, I am nevertheless disappointed by the lack of dividends.
• I feel these provide a preferred path for shareholder returns in their cyclical industry and, therefore, I only believe that a hold rating is appropriate.

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