What's Driving SLB's Stock Price Upward?

Core Viewpoint - Schlumberger (SLB) is experiencing a challenging 2024, with its stock underperforming compared to the broader energy sector, despite a 14% increase since the beginning of the year, outperforming the S&P 500's 2% return [1] Financial Performance - SLB reported a fiscal fourth-quarter adjusted EPS of $0.92, a 7$9.3 billion, which is a 3% increase year-over-year [1] - The company's full-year 2024 revenue increased by 10% year-over-year to $36.3 billion, with North American revenue down by 1$6.7 billion, while international revenue rose by 12% to $29.4 billion [1][2] - Well Construction revenues dipped 1$13.4 billion, but this was offset by significant growth in other segments, including Production Systems (up 24% to $12.1 billion), Reservoir Performance (up 9$7.2 billion), and Digital and Integration (up 10% to $4.2 billion) [2] Stock Performance and Valuation - SLB's stock has shown volatility over the past four years, with returns of 40$38.1 billion, a 5% year-over-year increase, with an expected EPS of $3.56, leading to a revised valuation of$48 per share, which is nearly 11% higher than the current market price [4] Industry Outlook - The oil and gas industry is expected to see a gradual correction in the oil supply imbalance, with promising investment outlooks in key regions such as the Middle East and offshore markets in Brazil, Guyana, Angola, and Norway [5] - Long-term investment in the industry will be supported by steady global economic growth, a focus on energy security, and increasing energy demand driven by emerging technologies like AI and data centers [5]