Forecast Of The Day: Schlumberger’s Drilling Revenue

April 7th, 2022 by Trefis Team
+34.54%
Upside
48.46
Market
65.20
Trefis
SLB: SLB logo
SLB
SLB

What?

Schlumberger’s (NYSE:SLB) Drilling Revenue declined from $11.5 billion in 2019 to $8.5 billion in 2020 and rose marginally to $8.6 billion in 2021. Trefis expects the metric to recover to over $9.6 billion in 2023.

Why?

Relevant Articles
  1. SLB’s Q2 Earnings: What Are We Watching?
  2. SLB Stock To Likely Trade Higher Post Q1
  3. SLB Stock Looks Attractive At $46
  4. What To Expect From SLB’s Stock Post Q4 Results?
  5. What To Expect From Schlumberger’s Stock Post Q2?
  6. Are Investors Too Optimistic On Schlumberger Stock?

While Covid-19 and the oil price war hurt activity in 2020, the robust economic recovery post the initial Covid lockdowns and elevated oil prices are likely to drive drilling activity higher in Schlumberger’s key markets.

So What?

However, we think the growth is more than priced into SLB stock. We value Schlumberger at $31 per share, about 24% below the current market price.

See Our Complete Analysis For Schlumberger

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Returns Apr 2022
MTD [1]		 2022
YTD [1]		 2017-22
Total [2]
 SLB Return -1% 37% -51%
 S&P 500 Return 0% -5% 102%
 Trefis MS Portfolio Return 0% -8% 262%

[1] Month-to-date and year-to-date as of 4/7/2022
[2] Cumulative total returns since the end of 2016

Invest with Trefis Market Beating Portfolios

See all Trefis Price Estimates