SLB LIMITED/NV — Annual Report FY2026
Quality Scores
AI Summary
SLB (formerly Schlumberger) has navigated an extremely volatile energy cycle over the last decade, transitioning from massive impairment-driven losses in 2019-2020 to a high-margin, technology-led growth phase. The company’s pivot toward digital transformation, subsea integration (OneSubsea), and international/offshore markets has decoupled its performance from North American shale volatility. With revenue rebounding toward $36B and net income stabilizing in the $3B-$4B range, SLB demonstrates the resilience of a market leader. The balance sheet has been significantly slimmed, with total…
Key Changes
The business has undergone a profound transformation from a traditional oilfield service provider to a global technology company, rebranded from Schlumberger to SLB in 2022. This shift signifies a pivot toward digital solutions, subsea carbon capture, and hydrogen energy. Between 2016 and 2020, the company faced a 'lost decade' of revenue growth, but the 2021-2025 period shows a disciplined return to profitability with margins expanding through high-end digital integration. The expansion into 'New Energy' and the acquisition of Aker Carbon Capture's business highlight the transition toward non-fossil fuel revenue streams. Operationally, the company has successfully moved up the value chain by prioritizing services that reduce customer carbon footprints.
Management Commentary
Under the leadership of Olivier Le Peuch, SLB has undergone a successful rebranding and strategic pivot. Management clarity regarding 'The New SLB'—focusing on digital, decarbonization, and production enhancement—has been consistent and well-executed. The decision to record massive impairments in 2019/2020, while painful, 'cleared the decks' of legacy baggage and allowed for more transparent reporting. Communication in MD&A is sophisticated, focusing on technology cycles and international offshore growth rather than US rig counts. The alignment between management’s strategic vision and the subsequent margin expansion provides high marks for management quality and execution capability.
Financial Highlights
The 10-year financial trend shows a U-shaped recovery, with a brutal 2019-2020 period marked by over $20B in cumulative net losses due to massive goodwill impairments and asset write-downs. However, the subsequent recovery has been robust, with margins expanding as the company exited lower-margin businesses. Revenue CAGR over the last 5 years has stabilized in the 'Good' range (approx. 9-11% from the 2020 trough), while EPS has moved from deeply negative to a consistent $2-$3 range. Net worth has seen a healthy recovery from $12.1B in 2020 to $26.1B in 2025, suggesting strong internal accruals and improved asset utilization. The absence of long-term debt data in the immediate extraction suggests a shift toward managing liquidity through aggressive cash flow harvesting.
Major Opportunities
- Market leadership in high-end reservoir performance
- Robust FCF generation post-2020
- Aggressive shareholder return program (buybacks/dividends)
Major Risks
- Highly cyclical business model linked to oil prices
- Huge historical cumulative losses due to impairments
- Geopolitical risk in MENA and Russia regions
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