SLB, the foremost global provider of oilfield services, announced quarterly results on January 23 that exceeded Wall Street projections, buoyed primarily by the integration of its ChampionX acquisition completed in July last year. The all-stock deal, valued at $7.75 billion, expanded SLB’s offerings by incorporating production chemicals and artificial lift technologies, enhancing its product portfolio amid an industry backdrop marked by cautious spending from energy producers.
The acquisition significantly bolstered SLB's financial performance in the fourth quarter, contributing $879 million to overall revenue and adding $206 million to adjusted core profits. Despite persistent softness in the North American market, the region's quarterly revenue increased by approximately 26%, reflecting the acquisition's positive impact.
In response to its improving earnings and outlook, SLB announced a 3.5% increase in its quarterly dividend and projected shareholder returns exceeding $4 billion for 2026 through a combination of dividends and share repurchase programs.
For the quarter ending December 31, SLB reported an adjusted earnings per share of 78 cents, surpassing the consensus estimate of 74 cents compiled by LSEG.
Investor sentiment around SLB has been notably optimistic since early January, following the U.S. apprehension of Venezuelan President Nicolas Maduro on January 3. Market participants anticipate that SLB stands to gain substantially as efforts to revitalize Venezuela’s struggling oil infrastructure progress.
SLB’s stock experienced a 23% increase in value since that event, with shares posting slight gains in early premarket trading on the date of the financial announcement.
Analysts, such as Stifel’s Stephen Gengaro, assert that SLB, along with competitor Halliburton, is particularly well-positioned to benefit from anticipated investments in Venezuela. Supporting this view, Halliburton’s CEO Jeff Miller recently shared on a conference call that his company is preparing for rapid scale-up in Venezuela and is actively pursuing U.S. licenses to enable its operations there.