National Oilwell Varco leads energy gainers
BY STEVE GELSI
NEW YORK -- National Oilwell Varco Inc. led gains among energy stocks Friday, rising as the oil service firm set plans to buy a pipe firm for $670 million on the heels of a better-than-expected profit report.
Oil service shares turned in the healthiest advance among the difference energy stocks, boosted by a stronger-than-forecast January jobs report.
National Oilwell Varco jumped 3%, setting the tone for the gains among oil service shares.
Among the major sector gauges, the Philadelphia Oil Service Index rose 1%, the NYSE Arca Oil Index moved up 0.6% and the NYSE Arca Natural Gas Index advanced by 0.6%.
National Oilwell said it'll pay $670 million in cash to buy NKT Flexibles. A joint venture between NKT Holding and Subsea 7 SA, Denmark-based NKT Flexibles makes flexible pipe for the offshore oil and gas industry.
NKT recently signed a supply-framework contract with Petrobras, Brazil's state-run oil company. The deal is expected to close in the first half of 2012.
On Thursday, National Oilwell's adjusted profit of $1.37 a share for the fourth quarter beat the consensus estimate of $1.30 a share.
Among stocks in the spotlight, Sunoco Inc. rose 0.2%.
The Philadelphia-based company said late Thursday that Chief Financial Officer Brian MacDonald will become its new chief executive and that Lynn Elsenhans will step down as CEO on March 1.
Sunoco also will buy back about a fifth of its common stock over the next 12 to 18 months, among other measures.
Sunoco will essentially exit the refining business to focus on midstream pipeline and energy infrastructure, analysts noted on Friday.
02/03/2012