Schlumberger Stock Poised For More Gains?

Schlumberger Stock Poised For More Gains?

Schlumberger's (NYSE: SLB) first quarter revenues declined by 6% sequentially, largely due to low North American rig count and a seasonal dip in international business. Apart from the traditional reservoir performance and well construction segment, the company's digital & new energy business also experienced headwinds mostly due to weak macroeconomic activity. Per recent filings, the company's short, medium, and long-term strategic focus is on the development of Core, Digital, and New Energy businesses, respectively. The Digital and New Energy segments are poised to unlock new revenue streams and drive long-term growth. With a low capital spending budget, the company is targeting a 4-percentage-point improvement in free cash flow margin. Thus, Trefis believes that SLB stock is poised for long-term gains. We highlight the historical trends in revenues, earnings, and stock price in an interactive dashboard analysis, Schlumberger Stock Has Lost 49% Since 2017. With the pandemic causing a paradigm shift in energy demand, Schlumberger (NYSE: SLB) has restructured its organization to focus on digital solutions for the existing oil & gas industry and the budding renewable energy sector. As crude oil prices are expected to remain subdued for a couple of years, there is a rising demand for technology solutions