Schlumberger (SLB) continues to report solid earnings growth, which is driving the share price up.
About 70% of the group’s sales take place in international markets, where it stands out for its technological leadership and the broad range of services it offers. Although spending by integrated oil companies has been flat to negative, SLB has been benefiting from the increased demand for high-quality services by both US and non-US based oil companies. Obviously, the drive to explore and develop shale oil and gas by a large number of these companies is helping SLB to drive business.
SLB continues to be one of the key companies in the sector, and further solid performance can undoubtedly be expected. The stock is trading with a P/E FY01 of about 15.4x, or about about 10% below the long-term average.