SLB: 2024 forecasts maintained, but share falls

(CercleFinance.com) - SLB confirmed its 2024 targets on Wednesday, despite the Saudi oil company's decision to maintain its production capacity.


Saudi Aramco yesterday said that, following directives relayed by the Kingdom of Saudi Arabia's Ministry of Energy, it would maintain its oil production capacity at 12 million barrels per day.

Note that in 2020 the group had set itself the target of reaching a maximum production capacity of 13 million barrels per day by 2027.

In a press release, management takes note of Saudi Aramco's decision, while expressing confidence in the strength of the current investment cycle.

We continue to work closely with Saudi Aramco, and from what we understand, all oil and gas projects remain intact, with the exception of two offshore extension projects which had not yet started and which will be suspended.

SLB shares closed down 1.3% in New York yesterday, having already troughed, falling over 7% at one point.

Oddo BHF considers the correction to be excessive, given that the pipeline of new projects remains strong (allowing greater selectivity of contracts entering the backlogs) and that the financial situation continues to strengthen.


Copyright (c) 2024 CercleFinance.com. All rights reserved.