What's Going On With Oilfield Services Giant Schlumberger Stock Today?

Schlumberger Ltd SLB shares are trading higher today after reiterating the FY24 guidance despite Saudi Aramco’s decision on oil capacity. The company’s stock fell over 7% yesterday.

During its fourth-quarter earnings call, the company disclosed FY24 guidance of strong Y/Y revenue growth and continued margin expansion, leading to mid-teens growth in adjusted EBITDA. 

The outlook includes the expectation of margin expansion in core business aided by favorable geographic mix and pricing in FY24.

Moreover, the company projected capital investment of ~$2.6 billion in FY24, similar to the full year 2023. Additionally, it plans to increase share repurchases in 2024, visibly enhancing returns to shareholders for the full year.

Olivier Le Peuch, Chief Executive Officer said, “Our forecast for significant growth for 2024 in the Kingdom remains intact. Looking ahead, the combination of our revenue mix in the Kingdom, which is weighted toward onshore and the expanding gas market, and our unique market position in other countries in the Middle East will continue to support the multi-year growth cycle in the region.”

“As we shared during our most recent earnings release, global energy demand continues to increase, and international production is expected to play a key role in meeting supply through the end of this decade. Given this, we are confident in the strength and longevity of this cycle through 2024 and beyond.”

Yesterday, Saudi Arabia’s state-owned Aramco suspended its plan to boost its maximum crude production capacity. 

On Tuesday, Aramco announced its decision to halt plans to increase crude production capacity from 12 million barrels daily to 13 million barrels daily.

Price Action: SLB shares are trading higher by 1.34% to $50.01 premarket on the last check Wednesday.