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.
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.
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.
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