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Schlumberger Ltd (NYSE:SLB), a leading oilfield services company with a market capitalization of $48.6 billion, has seen its stock price touch a 52-week low, dipping to $36.51. According to InvestingPro analysis, the stock is currently trading below its Fair Value. This price level reflects a significant downturn from the company’s performance over the past year, with Schlumberger’s stock experiencing a 1-year change of -25.84%. Despite the decline, the company maintains strong fundamentals with a P/E ratio of 11.42 and has maintained dividend payments for 55 consecutive years. The decline in stock value is indicative of the broader challenges faced by the energy sector, including fluctuating oil prices and evolving global energy demands. Investors and analysts are closely monitoring Schlumberger’s strategic moves to navigate the current market conditions and to assess the potential for recovery and growth in the coming quarters. With an overall financial health score rated as "GREAT" by InvestingPro, which offers 8 additional key insights about SLB’s potential, the company appears well-positioned to weather current market challenges.
In other recent news, SLB announced a significant drilling contract awarded by Woodside (OTC:WOPEY) Energy for the Trion development project offshore Mexico. This contract involves the delivery of 18 ultra-deepwater wells over three years, beginning in early 2026. The project aims to leverage AI-enabled drilling capabilities to enhance operational efficiency. Additionally, SLB Capturi, a joint venture with Aker Solutions, secured a contract for a carbon capture and storage solution at a waste-to-energy plant in Oslo, Norway. The project is set to begin in the first quarter of 2025 and finish by 2029.
In terms of financial outlook, Jefferies adjusted SLB’s stock price target to $59 from $60, while maintaining a Buy rating, citing increased investor interest. RBC Capital also revised SLB’s price target to $55 from $57, retaining an Outperform rating, and noted the significance of the CHX acquisition. Meanwhile, SLB is undergoing a business restructuring and workforce reduction to focus on cost-saving initiatives amid slow growth concerns. The company has recorded $237 million in severance charges in 2024 as part of its ongoing restructuring efforts.
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