• Earlier this month, Mubadala Energy awarded SLB multiple offshore drilling and integrated well services contracts for the Tangkulo deepwater natural gas development and related exploration in the Andaman Sea, offshore Indonesia, deploying advanced real-time downhole monitoring and full life-cycle support.
• This suite of contracts underscores SLB’s role as a full-cycle offshore partner, bundling high-tech services to tighten execution, safety and project economics for complex gas developments.
• Next, we’ll explore how securing these integrated deepwater contracts in Indonesia could influence SLB’s existing investment narrative around international growth.

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SLB Investment Narrative Recap

To own SLB, you need to believe that international and offshore activity, plus higher margin digital and integrated services, can offset a softer North American cycle and recent margin pressure. The Mubadala Energy win in Indonesia supports that international, full cycle thesis, but it does not materially change the near term reliance on global upstream spending or the key risk around integrating ChampionX efficiently.

The most relevant recent announcement alongside Indonesia is the US$1.5 billion, five year Mutriba field contract in Kuwait, which also leans on SLB’s integrated, technically demanding work. Together, Kuwait and Tangkulo highlight how SLB is tying its short and medium term catalysts to longer cycle, complex international projects that could be more resilient than shorter cycle North American work if spending slows.

Yet against these large offshore wins, investors should also be aware of how a faster energy transition could still pressure SLB’s long term oilfield exposure and...

SLB's narrative projects $38.7 billion revenue and $4.9 billion earnings by 2028. This requires 2.9% yearly revenue growth and about an $0.8 billion earnings increase from $4.1 billion today.

Uncover how SLB's forecasts yield a $54.08 fair value, a 7% upside to its current price.

Exploring Other Perspectives

While recent wins in Kuwait and Indonesia point to resilient activity, the most pessimistic analysts still assumed only about 1.5% annual revenue growth to roughly US$37.1 billion and earnings of about US$4.7 billion by 2028, reminding you that views on SLB’s risk and reward can diverge sharply and may need to be revisited as these new contracts play through.

Explore 13 other fair value estimates on SLB - why the stock might be worth as much as 62% more than the current price!

Build Your Own SLB Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SLB research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free SLB research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SLB's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.