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Entering The Digital Era Of The Industry With Schlumberger

Mar. 02, 2022 4:39 PM ETSchlumberger Limited (SLB)9 Comments
George Atuan, CFA profile picture
George Atuan, CFA


  • DELFI, Schlumberger's SaaS solution will allow the company to enter the new era of the industry and capture a larger share of the client's capital spending.
  • Global E&P capital spending to increase due to the high oil prices and the need to lessen the global reliance on Russian oil.
  • The fair value per share is $45, I recommend building a position at a share price below $33.50 as the risk-reward profile would be more attractive.

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Schlumberger (NYSE:SLB) is the leading global supplier for the oil and gas industry. Its know-how and relationships in the industry are two competitive advantages. However, SLB similar to its main competitors is heavily dependent on the capex spending

Schlumberger revenue and margin estimates by segment

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Schlumberger financial estimates

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This article was written by

George Atuan, CFA profile picture
"Price is what you pay, value is what you get"If you like my investment approach, consider purchasing my stock investing book: https://www.amazon.com/dp/B0C15JXW5QHere is my advice:1. Save 10% of whatever you make, no matter how insignificant it can be. As a young engineer, I saved 10% of my income no matter if it was $10 or $1,000. PAYING YOURSELF is the best piece of advice you can give anyone. I recommend the book 'The Richest Man in Babylon', it is a bit repetitive but entertaining and gets the point across.2. Invest in your competitive advantage. If you are an oil veteran, you should be investing in E&P companies and not in biotech start-ups. If you want to diversify, pay someone to give you advice on other sectors or buy ETFs with the right exposure. As for me, I graduated very young and worked in transportation and consumers as an engineer. Post-MBA I worked for one of the largest hedge funds covering sectors such as natural resources (including oil & gas), TMT, consumers, industrials and transportation. After that, I was a finance executive for Fortune 500 companies leaders in the consumers and TMT sectors. So you will never see me investing in financials, education or healthcare. I get exposure to those sectors via ETFs and professionals I trust.3. Don't trade but rather invest. Once I left the hedge fund world, I started an asset management firm for family, friends and HNWI. I was able to manage this fund while having extremely demanding roles by investing in the long term. When I buy a company, I just sell if my investment thesis is not valid anymore. Thus, I would just dedicate my Saturdays to reviewing my portfolio and exploring new opportunities. 4. Do what you love, not what makes the most money. You may leave money on the table in short term, but you will be happier in the long term even if you make less money overall.In my spare time, I like reading, rowing and enjoying life.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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