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HOUSTON - SLB (NYSE:SLB) has secured two engineering, procurement, and construction (EPC) contracts from PTT Exploration and Production Public Company Limited (PTTEP) for its OneSubsea joint venture, the company announced Thursday. With a market capitalization of $55 billion and currently trading at $36.83, SLB is considered slightly undervalued according to InvestingPro analysis, which rates the company’s overall financial health as "GREAT."
The contracts cover subsea production systems for offshore Malaysian fields, including the Alum, Bemban, and Permai deepwater gas fields in Block H and the Kikeh field, Malaysia’s first deepwater oil project. The scope encompasses horizontal subsea trees, umbilicals, control systems, and associated services.
These agreements extend a 20-year collaboration between the companies that has previously resulted in the delivery of more than 50 systems, according to SLB.
"By leveraging our experience in complex deepwater environments and adopting a highly collaborative, early engagement process with our clients, we will help PTTEP unlock maximum value from these projects," said Mads Hjelmeland, chief executive officer of SLB OneSubsea, in the press release.
The Block H gas development began producing from the Rotan and Buluh fields in February 2021, while the Kikeh oil and gas field has been in production since 2007. The fields are located in water depths ranging between 1,100 and 1,300 meters.
SLB OneSubsea is a joint venture backed by SLB, Aker Solutions, and Subsea7. The company states that the technology deployed will further extend the life of these fields, contributing to energy security and meeting energy demand in the region.
The financial terms of the contracts were not disclosed in the announcement. SLB, which has maintained dividend payments for an impressive 55 consecutive years, operates with a moderate debt level and posted diluted earnings of $2.57 per share over the last twelve months. Analysts have set price targets ranging from $36 to $62, suggesting potential upside from current levels. For comprehensive analysis of SLB and 1,400+ other stocks, InvestingPro offers detailed research reports with intuitive visuals and expert insights for smarter investment decisions.
In other recent news, Schlumberger NV (SLB) reported its financial results for the third quarter of 2025, showing a mixed performance. The company achieved an earnings per share (EPS) of $0.69, slightly beating the forecast of $0.68. However, its revenue of $8.9 billion fell short of the anticipated $8.97 billion. Despite these results, UBS reiterated its Buy rating on SLB, maintaining a price target of $44. UBS expressed a positive stance after reviewing SLB’s re-segmentation and updated disclosures. The firm noted that SLB largely reiterated its fourth-quarter 2025 outlook, even amidst macroeconomic concerns and weakening oil prices. These developments provide investors with insights into the company’s recent performance and future prospects.
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