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HOUSTON - National Energy Services Reunited Corp. (NASDAQ:NESR), which generated revenue of $114.5 billion in the last twelve months and maintains a FAIR financial health rating according to InvestingPro, has been awarded multiple production services contracts in Algeria and Libya with a total estimated value exceeding $100 million, according to a company press release issued Wednesday.
The contracts, ranging from three to five years in duration, cover several production services including coiled tubing, nitrogen and pumping services, cementing, and hydraulic fracturing. While the company faces challenges with weak gross profit margins, it has maintained profitability over the last twelve months.
NESR, which describes itself as an integrated energy services provider in the Middle East and North Africa region, will use these contracts to strengthen its position in North Africa’s energy services market.
"These awards not only enhance our existing leadership within our largest product lines, but also provide the platform upon which innovation and technology development can thrive in both Algeria and Libya," said Sherif Foda, CEO and Chairman of NESR. According to InvestingPro analysis, which offers comprehensive research reports for over 1,400 stocks, analysts remain optimistic about the company’s profitability outlook for this year.
The company noted that the contracts reflect steady activity growth across key countries in North Africa, with several strategic projects in both oil and gas sectors.
NESR emphasized its commitment to maintaining a strong local presence in these markets and operating with national crews. Founded in 2017, the company employs over 6,000 people representing more than 60 nationalities across 16 countries.
The company provides various production services including hydraulic fracturing, cementing, and stimulation, as well as drilling and evaluation services such as directional drilling and testing services. With an EBITDA of $22.1 billion in the last twelve months, InvestingPro analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors seeking exposure to the energy services sector.
In other recent news, National Energy Services Reunited Corp reported its first-quarter 2025 earnings, showing a 2.1% increase in revenue year-over-year, reaching $303.1 million. However, this figure represents an 11.7% decline compared to the previous quarter. The company’s adjusted earnings per share stood at $0.14, aligning with analysts’ projections. In addition to the earnings report, National Energy Services Reunited announced the acquisition of multiple five-year downhole drilling contracts in Kuwait valued at $100 million. These contracts cover various segments, including Fishing & Remedial Services and Downhole Tools. Analysts from different firms have noted these developments, emphasizing the company’s strengthened position in Kuwait. The recent contract wins are seen as a significant boost to the company’s operations in the Middle East and North Africa region.
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