Acergy S. A. (ACGY)

[OilStockReport]

Within the oilfield services group, we are positive on London-based Acergy S.A. (Nasdaq: ACGY). With a healthy backlog, significant cash balances and no near-term refinancing requirements, Acergy should weather the challenging business environment better than many of its peers.

Our continued Outperform recommendation on Acergy ADRs also reflects the company’s high-quality client base, which mostly includes well-capitalized oil majors or national oil companies. We believe Acergy’s impending merger with Subsea 7 will create a stronger, more diverse seabed-to-surface engineering and construction player, enabling it to provide a broader array of services.