SLB Poised To Lead As Oil Begins To Recover

With product sales and services in more than 120 countries and employing approximately 105,000 people who represent over 170 nationalities, Schlumberger supplies the industry’s most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance sustainably. Low oil prices have hurt produces and Oil Field Service (OFS) companies across the board. Oil prices will slowly begin recovering globally and Schlumberger is positioned to begin ramping back up. Over the last few moths it has consolidated senior debt and conducted major restructuring to reduce costs. They are continuing to invest in R&D, which Schlumberger is know to lead the industry in, which will set them up as producers look to new technologies to manage costs and production. Schlumberger recently released a new service offering called Symphony, which provide live downhole testing. This is critical because all producers globally will need to monitor and control their reservoirs over the next little while due to reduced demand and therefore reduce oil production. The demand for this service will continue to be strong, in both strong and weak oil prices, due to the need to continually optimize production. With a depressed share price, Schlumberger is a long term hold, and provides a great opportunity to own a blue chip company.

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MoonDawg

Jun 6, 2020
· POSITION CLOSED

-19.10%

Position Return %

21.99

Price When Posted

-4.20

Position Return

SLB

Schlumberger Ltd.

30.95

0.77
2.53%
Current Price

SLB Poised To Lead As Oil Begins To Recover

bullish
With product sales and services in more than 120 countries and employing approximately 105,000 people who represent over 170 nationalities, Schlumberger supplies the industry’s most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance sustainably. Low oil prices have hurt produces and Oil Field Service (OFS) companies across the board. Oil prices will slowly begin recovering globally and Schlumberger is positioned to begin ramping back up. Over the last few moths it has consolidated senior debt and conducted major restructuring to reduce costs. They are continuing to invest in R&D, which Schlumberger is know to lead the industry in, which will set them up as producers look to new technologies to manage costs and production. Schlumberger recently released a new service offering called Symphony, which provide live downhole testing. This is critical because all producers globally will need to monitor and control their reservoirs over the next little while due to reduced demand and therefore reduce oil production. The demand for this service will continue to be strong, in both strong and weak oil prices, due to the need to continually optimize production. With a depressed share price, Schlumberger is a long term hold, and provides a great opportunity to own a blue chip company.
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read-time
1 min

24.00

Target Price

5/ 10

Confidence

2-4 Weeks

Timeframe
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Earnings Release
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News
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