Retirement Stock Portfolio: 12 Energy Stocks To Consider

7. Schlumberger Limited (NYSE:SLB)

Schlumberger NV, also known as Schlumberger Limited, is an American oilfield services company. As of 2022, SLB has been the world’s largest offshore drilling company and the world’s largest offshore drilling contractor by revenue.

Schlumberger Limited (NYSE:SLB) has been paying dividends since 1994, with consistent dividend increases in the past three years. The current dividend yield for the company is 2.76% as of September 7. SLB shareholders received a quarterly dividend of $0.28 per share on June 05, 2024. It remains focused on generating strong cash flows to meet its commitment to return to shareholders.

As of Q2 2024, the company has demonstrated a strong quarterly performance. It beat earnings expectations with an EPS of $0.85, while expectations were $0.826. Revenue increased by 5%, while adjusted EBITDA grew 11%. It also generated $776 million of free cash flow. International revenue grew by 6% due to record-high performance in the Middle East and Asia, as well as strong results in deep water basins. The Gulf of Mexico led revenue growth in North America, albeit partially offset by weaker drilling in US land. Core divisions saw 4% sequential revenue growth and margin expansion, while Digital & Integration also achieved record quarterly growth.

Schlumberger Limited (NYSE:SLB) benefits from a robust clientele base, including major global oil corporations, Petrobras and Saudi Aramco. It is also set to benefit from oil majors ramping up production on economic growth, receiving a boost from lower interest rates. Moreover, it is also set to experience a strong resurgence of activity in the oil and gas business due to long-cycle development and capital expansion projects, supported by stable oil prices above $75 a barrel.

At the end of the second quarter, 67 hedge funds tracked by Insider Monkey held stakes in Schlumberger Limited (NYSE:SLB) having a total value of over $15.08 billion.