SLB Says Venezuela Revenue Is On Track To More Than Double This Year, With Multifold Growth Possible In 2027
CEO Olivier Le Peuch floated SLB's historical $1 billion Venezuela level as "a target" as the company guided to about $10 billion in fourth-quarter revenue.
SLB's Venezuela revenue is on track to more than double this year, CEO Olivier Le Peuch said on the oilfield services company's third-quarter earnings call Friday, with potential for multifold growth in 2027. Pressed by a Citi analyst on how large the business could get, he pointed to the roughly $1 billion of annual revenue SLB once earned there as a possible ambition rather than a limit.
A ceiling that may not exist
Le Peuch said activity in Venezuela is accelerating after more than a decade of limited investment, led by international oil companies, with strong momentum among U.S. and European operators. He listed three catalysts: customers have announced more capital spending in the country, several international operators have reached agreements there, and SLB began executing another large contract this quarter.
The Citi analyst noted SLB had cited a billion dollars at peak and asked where the business could be in two to three years. Le Peuch said the company has mentioned the historical level before: "we don't see why not this as a ceiling or there is no ceiling. Why not as a target, as an ambition going forward?"
SLB is preparing for it. "We're adding resources, adding equipment," he said, citing "a unique capacity on the ground and ability to deliver." He also listed the reactivation of Venezuela among the drivers he expects to let SLB's core divisions outperform the market in 2027.
The $10 billion fourth-quarter guide
SLB, which sells technology, equipment and services to oil and gas producers and also runs digital and data center businesses, expects fourth-quarter revenue of about $10 billion, up 5% to 7% from the third quarter. Third-quarter revenue was $9.45 billion, up 5% sequentially, and earnings per share excluding charges and credits were $0.64.
The outlook assumes Middle East revenue stays flat at about $1.9 billion, given continued tensions in the region. Le Peuch said an eventual resolution there would unlock deferred activity and act as a catalyst for 2027. Adjusted EBITDA margins are expected to expand 100 to 150 basis points.
Shares were up about 7% at $52.94 in Friday trading, as of late morning, for a market value of $73.5 billion.
What comes in January
For 2027, Le Peuch said he expects global oilfield services activity to grow at a mid-single-digit rate, assuming Middle East activity holds at second-half 2026 levels and the conflict does not escalate, and that SLB will visibly outperform.
Chief Financial Officer Stephane Biguet said the company will give more color on 2027 margins in January.
SLB's next checkpoint on 2027 margins comes in January, when Biguet has said the company will add detail.
Sources
- SLB’s (NYSE:SLB) Q3 2026: beats on revenue — Yahoo Finance
- Earnings Snapshot: SLB reports Q3 growth across all regions, led by Middle East recovery (SLB:NYSE) | Seeking Alpha — seekingalpha.com
- SLB in charts: Q3 signals momentum as Middle East recovery and core divisions drive sequential revenue growth | Seeking Alpha — seekingalpha.com
- SLB Q3 Earnings & Revenues Beat Estimates on Production Systems Growth — Yahoo Finance
- SLB (SLB) Q3 Earnings and Revenues Surpass Estimates — Yahoo Finance
