New York, Jan 23, 2026, 18:38 EST — After-hours
- SLB shares fell roughly 0.3% despite the oilfield services company surpassing quarterly profit estimates and raising its dividend.
- Management warned of a weaker first quarter but noted it could ramp up operations in Venezuela rapidly if licenses and payments come through.
- Next week, traders will focus on oil prices, policy signals from Venezuela, and U.S. drilling data.
SLB shares slipped 0.3% to $49.15 on Friday following a volatile session that saw the stock fluctuate between $48.65 and $51.66. Investors digested a quarterly profit beat but remained wary about the near-term outlook.
The oilfield services company emphasized shareholder returns and the potential reopening in Venezuela, though it cautioned that the first quarter may begin on a weaker note. Traders are left wondering if a cash-rich narrative can endure amid uneven drilling and completion activity.
Oil prices pushed higher again, with Brent up 0.7% at $64.49 a barrel and U.S. WTI also climbing 0.7% to $59.78. The moves came amid renewed supply concerns linked to escalating U.S.-Iran tensions. (Reuters)
SLB reported fourth-quarter revenue of $9.745 billion and adjusted earnings of 78 cents a share in its earnings release. The company said free cash flow — the cash remaining after capital expenditures — hit $2.29 billion. It announced a 3.5% boost to its quarterly dividend, raising it to 29.5 cents per share, payable April 2 to shareholders of record on Feb. 11. SLB also forecast returning over $4 billion to shareholders in 2026. CEO Olivier Le Peuch described the results as “very strong fourth-quarter results.” (SEC)
The quarter was driven by Production Systems and Digital, with ChampionX playing a larger role following last year’s acquisition. SLB has been pushing harder into production and recovery services — covering chemicals, artificial lift, and subsea gear — as operators look to boost output from existing fields.
SLB said on its post-earnings call that North America land activity is set to keep falling year over year. It expects first-quarter revenue to drop by high-single digits compared to the fourth quarter, with adjusted core profit down 15% to 20%. The company also projected 2026 revenue between $36.9 billion and $37.7 billion, assuming oil prices hold between $50 and the low $60s per barrel. This follows ChampionX contributing $879 million in revenue during the quarter. (Reuters)
Venezuela remains the wild card. Le Peuch noted, “We are already receiving a lot of inquiries from our customers,” but emphasized SLB will require proper licensing and payment terms before ramping up operations there. (Reuters)
SLB stands as the sole international oilfield services company currently active in Venezuela, offering services to Chevron under its license, Reuters reports. Halliburton has indicated plans to return once commercial and legal conditions are finalized.
Service demand still hinges largely on drilling activity. The U.S. oil and gas rig count ticked up by one to 544 this week, according to Baker Hughes, but it’s still 32 rigs shy of where it stood a year ago. (Reuters)
But risks lurk. A steep fall in oil prices would quickly freeze budgets. Venezuela projects might hit a wall over licenses or payment doubts. Plus, SLB’s own forecast points to a first-quarter decline even without fresh disruptions.
When U.S. markets reopen Monday, eyes will be on whether SLB can stay close to $50. The spotlight is shifting from the initial earnings beat to cash returns and the expected first-quarter low. Traders will also be scanning for clear updates from Washington on Venezuela licenses.
Baker Hughes will release its rig count update on Jan. 30 at 13:00 ET — a weekly snapshot the oilfield services sector still leans on to gauge demand. (Investing)
