NEW YORK, Jan 25, 2026, 07:05 (EST) — Market closed
- After a choppy session following its earnings report on Friday, SLB shares ended down 0.3%, closing at $49.15
- CEO Olivier Le Peuch says customers are already asking about Venezuela, but licenses and payment terms must first be secured
- A Bloomberg report revealed U.S. officials have explored deploying SLB and similar firms to restore Venezuela’s aging oilfields
SLB N.V. kicks off the week with Venezuela back in the spotlight. The oilfield services firm signaled it’s ready to act swiftly if conditions align. On Friday, the stock ended slightly lower, down 0.3% at $49.15.
Why it matters now: SLB has turned into a shorthand bet on Venezuela’s oil sector reopening after a government shift in Caracas, and the stock has been volatile. Traders jump on headlines fast—and just as fast, they pull back.
The company also flagged a weaker start to the year, underscoring that its core operations depend more on producer spending each quarter than on government pledges. Even if political shifts occur swiftly, a ramp-up in Venezuela could still face delays.
SLB posted fourth-quarter revenue of $9.75 billion on Friday, with EPS excluding charges and credits at $0.78. The company bumped its quarterly cash dividend 3.5% higher to $0.295 a share and confirmed plans to return over $4 billion to shareholders in 2026 via dividends and buybacks. SEC
The company warned analysts to prepare for its usual early-year slump. CEO Olivier Le Peuch noted that North America land activity will continue to slide year over year. SLB forecasted a sequential revenue drop in the first quarter — compared to the previous quarter — with adjusted core profit expected to fall between 15% and 20%. Reuters
Venezuela remains the unpredictable element investors can’t stop watching. “We are already getting a lot of questions from customers,” Le Peuch said on the call, noting that licensing, payment, and operating terms still need to be nailed down. SLB claims it’s the only international oilfield services firm actively running operations in Venezuela. The company has maintained its facilities, equipment, and local staff there, supporting Chevron under the U.S. major’s license. Reuters
A Bloomberg News report on Saturday stirred the pot, claiming U.S. officials have engaged with Chevron, other producers, and service companies about a rapid boost in Venezuela’s crude output through repairs and swapping out old equipment. Reuters hasn’t been able to confirm the story yet, and both the White House and the companies involved declined to comment, Reuters noted. Reuters
The competitive angle matters because any real work wouldn’t fall solely to SLB. The report named Halliburton and Baker Hughes as potential players, zeroing in on who can quickly mobilise crews and equipment—and who’s ready to shoulder the compliance and payment risks.
Outside Venezuela, the U.S. drilling scene is mixed. Baker Hughes reported that U.S. energy companies added one oil and gas rig in the week ending Jan. 23, bringing the total to 544. That’s still 32 rigs fewer than a year ago, a drag on North American activity SLB has already highlighted. Reuters
Weather is now influencing energy market sentiment. A winter storm hitting parts of the U.S. has forced cuts in crude and natural gas output, analysts noted. Diesel prices climbed as traders factored in supply disruptions and a spike in demand from the cold. “There is the potential for a surge in distillate demand,” said veteran oil analyst Tom Kloza. Reuters
Still, this trade has clear risks. Venezuela deals hinge on licenses, guaranteed payments, and security—any hiccup could push the stock further into an already shaky near-term outlook. Oil prices are crucial as well; SLB’s full-year revenue forecast assumes oil between $50 and the low $60s per barrel. Falling below that range would put their budgets and forecasts under serious strain.
Investors will zero in on any concrete U.S. decisions regarding licensing and operating conditions for Venezuela, and whether other companies follow SLB’s lead. Baker Hughes will review its results during a webcast on Monday, Jan. 26, potentially offering fresh insight into demand and pricing trends in the oilfield services sector. investors.bakerhughes.com
