- Oil States International will benefit from higher perforating equipment sales in the international markets and frac plugs in the US.
- The company's backlog improved in Q4, and the book-to-bill ratio was 1.2x in FY2021.
- In the short term, it faces sales roadblocks owing to a seasonal decline in customer activity and energy infrastructure repairs in the Gulf of Mexico following Hurricane Ida.
- Free cash flow turned negative in FY2021; but with robust liquidity, the financial risks should stay out of sight.
For further details see:
Oil States International: Recovery Agents Can Outweigh Short Term Disruptions