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Petrobras recently awarded SLB (Schlumberger) a major contract to supply advanced services and technology for up to 35 ultra-deepwater wells in Brazil’s Santos Basin, focusing on real-time production intelligence and precision reservoir management in the Atapu and Sepia fields.
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This contract highlights the growing role of advanced digital and electric completions solutions in unlocking value from complex, hard-to-access energy resources in deepwater environments.
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We’ll examine how this significant Petrobras contract could reshape Schlumberger’s investment narrative, particularly its digital technology leadership.
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To be a Schlumberger shareholder today, you need to believe that global demand for advanced energy services and digital technologies will support the company’s growth even amidst cyclicality in upstream spending. The new Petrobras contract reinforces SLB’s leadership in deepwater and digital, but given persistent macro uncertainty and near-term pressure from declining North American activity, its impact on the most important short-term catalyst, international revenue stability, is not expected to be immediately material; key risks around integration costs and energy transition trends remain in play.
Among recent announcements, the completed acquisition of ChampionX stands out. This move expands SLB’s production optimization and digital capabilities, directly connecting to the company’s digital technology leadership and its ability to drive recurring, higher-margin revenue in challenging markets.
But investors should be aware that, despite this progress, ongoing macroeconomic uncertainty and operator spending reductions could still pose a challenge to SLB’s near-term earnings…
Read the full narrative on Schlumberger (it’s free!)
Schlumberger’s outlook anticipates $38.7 billion in revenue and $4.9 billion in earnings by 2028. This is based on a 2.9% annual revenue growth rate and an $0.8 billion increase in earnings from the current $4.1 billion.
Uncover how Schlumberger’s forecasts yield a $46.69 fair value, a 31% upside to its current price.
Simply Wall St Community members submitted 13 Schlumberger fair value estimates, ranging from US$36 to US$64.78 per share. Keep in mind, while views vary widely, exposure to operator spending cuts and macro risks may influence your own outlook for future performance.
