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    Drilling Contract Win At SLB (SLB) Has Changed Its Investment Story

    Simply Wall St·11/14/2026 21:24:19
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    • Vår Energi has awarded SLB the role of main integrated drilling services supplier for two harsh environment rigs on the Norwegian Continental Shelf, under a four year contract with four optional one year extensions that could run through 2034.
    • The deal deepens SLB’s role in Vår Energi’s offshore operations by linking integrated drilling with existing digital planning and subsea production work under the OneSubsea partnership.
    • We will look at how SLB’s investment narrative around higher margin integrated and digital services aligns with this long term Vår Energi award.

    Scan other contractors riding similar offshore momentum by checking the hand picked 44 power grid technology and infrastructure stocks, which could sit alongside SLB in an energy infrastructure watchlist.

    SLB Investment Narrative Recap

    To own SLB, you need to be comfortable with a business that leans on long cycle oil and gas work while trying to grow higher margin digital and data center operations. The analyst consensus Narrative on Simply Wall St leans on earnings that are forecast to grow 16.41% per year and improving margins, which still depends heavily on smooth project execution.

    The fresh Vår Energi win supports the idea that large integrated contracts remain available, although it does not change the biggest near term swing factors. Key catalysts still sit in data center solutions, ChampionX and Kelvion integration, while major risks include weaker global upstream spending and any prolonged revenue drag from the Middle East.

    The Aker BP Lyra award for subsea production systems and umbilicals fits directly beside the Vår Energi contract. Together they underline that SLB keeps winning work tied to standardized subsea kit and integrated delivery, which matters for the narrative that more activity shifts toward production systems and recurring service style work.

    For catalysts, Lyra reinforces how subsea projects can feed into SLB’s Production Systems division, where EBITDA margins were above 20% according to the analyst consensus Narrative on Simply Wall St. Execution missteps or delays on contracts like Lyra would be a practical risk for that margin story, while consistent delivery would support the push toward steadier, OPEX linked revenue streams.

    SLB's narrative projects US$43.0b revenue and US$5.5b earnings by 2029. This aligns with analyst expectations of 5.7% yearly revenue growth and an earnings increase of about US$2.4b from current earnings of US$3.1b.

    Uncover how SLB's fair value indicates a 21% potential upside to its current price before that discount closes.

    NYSE:SLB 1-Year Stock Price Chart
    NYSE:SLB 1-Year Stock Price Chart

    Exploring Other Perspectives

    One bullish twist on SLB focuses on offshore awards like this Vår Energi deal as the real earnings swing factor, rather than data center growth. The most optimistic analysts were already sketching out about US$51.2b of revenue and US$7.3b of earnings by 2029. You can treat this contract as a fresh test of that more aggressive storyline and explore how expectations might shift from here.

    Explore 5 other SLB fair value estimates, including one that suggests as much as 65% potential upside from the current price.

    Form Your Own Verdict

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    Looking for more SLB style investment ideas?

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