SLB shares have fallen 23% from their recent high amid a crash in oil prices, but the oilfield services company is being touted as a top buy on the dip. Brent crude, which surged to $138 per barrel earlier this year after U.S. and Israeli strikes on Iran, has since plummeted to around $71 per barrel on hopes of a peace deal. SLB’s first-quarter revenue fell 11% sequentially and net income dropped 6% year over year to $752 million due to Middle East disruptions, though management views the impact as temporary and is preserving capacity for a rebound. The company points to a Final Investment Decision pipeline exceeding $100 billion in long-cycle deepwater projects, which supports pricing power and future revenue. With oil still above pre-conflict levels and supply rebalancing expected, SLB is positioned to benefit from sustained upstream investment.
SLB N.V.SLB's long-cycle deepwater project pipeline exceeding $100 billion supports future revenue and pricing power.
Schlumberger NVSLB's long-cycle deepwater project pipeline exceeding $100 billion supports future revenue and pricing power.