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    What Schlumberger (SLB)'s Brazil Ultra-Deepwater Tech Contract Win Means For Shareholders

    Simply Wall St·10/03/2025 13:31:22
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    • On September 25, 2025, Petrobras awarded Schlumberger a major contract to provide advanced completion technologies and digital solutions for up to 35 ultra-deepwater wells in Brazil's Santos Basin, with completions work scheduled to begin in mid-2026.
    • This contract highlights Schlumberger's expanding role in high-tech offshore operations and underscores its ongoing momentum in deploying digital oilfield solutions in resource-rich environments.
    • We'll examine how this significant contract win expands Schlumberger's presence in Brazil and its implications for the company's investment narrative.

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    Schlumberger Investment Narrative Recap

    To be a Schlumberger shareholder today, you need to believe that sustained global investment in complex, high-tech energy infrastructure will outweigh cyclical pressures in shorter-cycle markets. The sizable Petrobras win reinforces Schlumberger’s international growth ambitions and digital expansion, but by itself, it does not fundamentally alter the near-term risk tied to declining upstream spending in North America or ongoing macro uncertainty.

    The launch of Electris, Schlumberger’s digitally enabled electric completions portfolio in May 2025, is particularly relevant to this Petrobras contract, as that same technology is being deployed to enhance production control in these challenging ultra-deepwater wells, supporting the company’s positioning in providing high-value digital oilfield solutions that may help buffer some cyclical volatility.

    But while this international contract pushes growth, investors should also be mindful that global operator spending cuts could still trigger earnings volatility in the quarters ahead if...

    Read the full narrative on Schlumberger (it's free!)

    Schlumberger's outlook anticipates $38.7 billion in revenue and $4.9 billion in earnings by 2028. Achieving this will require 2.9% annual revenue growth and an $0.8 billion increase in earnings from the current $4.1 billion.

    Uncover how Schlumberger's forecasts yield a $46.69 fair value, a 37% upside to its current price.

    Exploring Other Perspectives

    SLB Community Fair Values as at Oct 2025
    SLB Community Fair Values as at Oct 2025

    Thirteen private investors in the Simply Wall St Community estimate Schlumberger’s fair value ranges widely from US$36 to US$67 per share. As offshore demand grows, however, the risk from potential operator spending cuts continues to shape the company’s earnings path, explore how your view compares.

    Explore 13 other fair value estimates on Schlumberger - why the stock might be worth as much as 97% more than the current price!

    Build Your Own Schlumberger Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.