SLB: entering a multiyear growth cycle

As expected, Schlumberger (SLB) announced strong 4Q and Full-Year 2021 results. The company beat the consensus earnings per share estimates of $0.39 by $0.03, achieving a Non-GAAP EPS of $0.42. It also delivered strong revenues of $6.22B, above consensus estimate of $6.09B.

Schlumberger CEO Olivier Le Peuch commented, "Looking ahead into 2022, the industry macro fundamentals are very favorable, due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices. We believe this will result in a material step up in industry capital spending with simultaneous double-digit growth in international and North American markets. Absent any further COVID-related disruption, oil demand is expected to exceed prepandemic levels before the end of the year and to further strengthen in 2023. These favorable market conditions are strikingly similar to those experienced during the last industry supercycle, suggesting that resurgent global demand-led capital spending will result in an exceptional multiyear growth cycle."

As we stated in our previous post about SLB the company is likely to continue its strong growth in the long-term. However, in the short-term, the markets are going through the stress of correction using any strength to sell in. In this environment, the Buy on rumor, Sell on news behavior is likely.

For a more detailed analysis, see this article by Fluidsdoc published to Seeking Alpha on January 19: Schlumberger: Hey Buddy, Got Any Oil?

This blog does not provide investment advice. Please talk to professionals before investing.

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