SLB surges on $1.5bn Kuwait oilfield contract
Five-year Mutriba field deal adds 2% to revenue run-rate for oilfield services leader
Schlumberger shares climbed nearly 3% on Tuesday after the oilfield services provider secured a $1.5 billion, five-year contract to develop Kuwait's Mutriba field, reinforcing its dominant position in the Middle East energy market.
The stock rose 2.84% to $49.42 in morning trading, building on a year-to-date rally that has lifted the company's market capitalization to $72.3 billion. The contract, awarded by Kuwait Oil Company, is expected to add approximately 2% to SLB's revenue run-rate and provides visibility through 2030.
The integrated development agreement encompasses end-to-end field services including design, development planning, and production management for the Mutriba field's high-pressure, high-temperature reservoirs, which contain sour gas. The technically challenging scope expands SLB's existing subsurface and reservoir work at Mutriba, according to company reports.
"This award demonstrates the strength of SLB's long-standing partnership with Kuwait Oil Company," said Steve Gassen, executive vice president of Geographies at SLB. "The new scope of work positions SLB to support safe, reliable execution in complex reservoir conditions as the development of the field progresses."
The contract win comes as analysts maintain a broadly positive outlook on SLB. Of 28 analysts covering the stock, 28 rate it a buy, with an average price target of $53.80—roughly 9% above current levels. The company trades at 20.6 times trailing earnings but just 16.2 times forward earnings, suggesting analysts expect earnings growth to accelerate in the coming quarters.
SLB's trailing twelve-month revenue stands at $35.7 billion, with a profit margin of 9.5%. The company has returned capital to shareholders through dividends and share repurchases, maintaining a commitment to return at least $4 billion annually. The stock's 52-week range of $30.37 to $51.67 reflects significant volatility in 2025, though shares have rebounded strongly from the April low of $31.11.
The Kuwait contract underscores SLB's strategic focus on international growth, particularly in the Middle East where national oil companies continue investing in production capacity despite global energy transition pressures. The integrated delivery model for Mutriba is designed to reduce execution risk and improve capital efficiency in what industry analysts describe as some of the world's most challenging reservoir conditions.
SLB's ability to secure complex, long-term contracts has become increasingly important as the oilfield services sector consolidates around companies with the technological capabilities to handle difficult reservoirs. The Mutriba award follows SLB's broader strategy of positioning itself as a full-service partner rather than a pure-play equipment provider.
The company reported $2.35 in earnings per share over the past twelve months, with analysts projecting growth to $3.50 per share in fiscal 2026. However, the most recent quarter showed some pressure, with revenue declining 3% year-over-year to $8.49 billion and earnings per share of $0.72 falling short of the $0.74 analyst consensus.
Despite recent quarterly softness, the Kuwait contract provides tangible evidence of SLB's competitive advantages in technically demanding markets. The five-year duration offers revenue stability that analysts value in the cyclical oilfield services sector, where shorter-term contracts have historically created earnings volatility.
Looking ahead, investors will watch for additional international contract awards as major national oil companies in the Middle East, including Saudi Aramco and Abu Dhabi National Oil Company, continue multi-year capital expenditure programs. SLB's existing relationships across the region position it to benefit from sustained investment in conventional oil and gas production, even as energy companies allocate increasing capital to lower-carbon alternatives.