Schlumberger Limited (NYSE:SLB): A Profitable Bet on Energy Transition

Have you been searching for a stable yet lucrative investment opportunity in the energy sector? Look no further than Schlumberger Limited (NYSE:SLB), a company that has been quietly transforming itself into a technology powerhouse, driving energy innovation for a balanced planet. Let's dive into why SLB is among the most profitable oil stocks to buy now.

SLB's journey from a traditional oilfield services company to a global technology leader is nothing short of remarkable. In 2022, the company rebranded itself as SLB, signaling its commitment to energy innovation and decarbonization. This strategic pivot has paid off, with the company reporting a 10% year-on-year revenue increase to $9.16B in its 2024 Q3 results, driven by a 13% rise in adjusted EBITDA to $2.34B.

One of the key drivers behind SLB's success is its investment in new energy systems and carbon management. The company's New Energy business, now a strategic driver for the company, is focused on developing technologies across five areas: carbon solutions, hydrogen, geothermal and geoenergy, energy storage, and critical minerals. This strategic focus has enabled SLB to create and scale new energy systems of tomorrow, contributing to its financial growth and positioning it as a leader in the energy transition.

Another factor contributing to SLB's profitability is its industrial decarbonization efforts. The company is expanding technologies and opportunities for carbon capture, utilization, and sequestration (CCUS), which is a significant lever for reducing emissions in hard-to-abate industries. This focus on carbon management has not only enhanced SLB's financial performance but also made it an attractive investment opportunity among oil stocks.

Strategic acquisitions have also played a significant role in SLB's success. In 2023, the company formed the OneSubsea joint venture with Aker Solutions and Subsea7, which has contributed to its offshore breadth, resilience, and durability. More recently, in 2024, SLB announced an agreement to acquire ChampionX in an all-stock transaction, further enhancing its offerings and competitive position. These strategic acquisitions have expanded SLB's portfolio, enabling it to deliver strong financial performance and maintain its full-year adjusted EBITDA margin goal of 25% or higher.

In conclusion, Schlumberger Limited (NYSE:SLB) is a compelling investment opportunity for those looking to capitalize on the energy transition. The company's strategic focus on new energy systems and carbon management, combined with its successful acquisition strategy, has driven its profitability and positioned it well for future growth. As an experienced English essay writing consultant, I believe that SLB's stable yet lucrative investment profile aligns with my core investment values of stability, predictability, and consistent growth.