Rising oil prices set to lift these two

Article Excerpt

In 2017, OPEC plans to cut oil production by about 4.5%. That should help reduce the supply of oil and stabilize prices. It should also spur earnings for companies, such as ShawCor and Precision Drilling, that supply goods and services to oil producers. SHAWCOR LTD. $34 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 64.6 million; Market cap: $2.2 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.8%; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and gas pipelines from rusting. It also makes electrical wire, protective sheaths and other industrial products. In the three months ended September 30, 2016, ShawCor’s revenue fell 46.6%, to $259.1 million from $485.4 million a year earlier. Weaker oil and gas prices have prompted exploration firms to drill fewer new wells. In turn, that has reduced demand for new pipelines and maintenance services. Due to lower revenue and a $154.3 million writedown, ShawCor lost $174.0 million, or $2.69 a share, in the…