Why Did NESR Plunge 16.92% Amid Saudi Expansion?

On April 21, 2025, National Energy Services Reunited Corp. (NESR) experienced a significant drop of 16.92% in pre-market trading, marking a notable decline in its stock performance.

NESR has commenced the construction of an 180,000m² state-of-the-art facility at King Salman Energy Park (SPARK) in Saudi Arabia. This development is part of a strategic expansion aimed at enhancing the company's presence in the Middle East and North Africa (MENA) region. The facility will be developed in four phases, with the initial focus on transitioning hydraulic fracturing operations. The integration of AI and machine learning technologies is expected to optimize drilling, well intervention, and production enhancement, thereby boosting efficiency and reducing non-productive time.

The project aligns with Saudi Arabia's Vision 2030, emphasizing localization, technological advancement, and strengthening domestic manufacturing capabilities in the energy sector. The facility will serve as a regional hub for innovation in oilfield services, adhering to the highest LEED facility development standards. This strategic positioning within SPARK, a leading energy industrial ecosystem, is expected to create operational synergies and business development advantages, reinforcing NESR's foothold in the critical MENA energy hub.