SLB shares closed down 1.8% at $50.64 on Thursday, with minimal movement in after-hours trading, as broader energy sector pressures weighed on the stock. The decline came despite the company securing multiple offshore drilling contracts for Mubadala Energy's Tangkulo deepwater gas development in Indonesia's Andaman Sea.
The contracts, which target first gas production before the end of 2028, were highlighted by Mubadala Energy Indonesia's president director as reflecting a strategic commitment to developing Indonesia's offshore resources. SLB's Asia president emphasized the project's focus on disciplined execution. Financial terms of the agreement were not disclosed.
Macroeconomic headwinds proved significant, with Brent crude falling 2.71% to $67.52 per barrel and U.S. West Texas Intermediate dropping 2.77% to $62.84. The International Energy Agency reduced its 2026 demand growth forecast, citing a substantial market surplus. Trading volume for SLB reached approximately 23.7 million shares, exceeding its 50-day average.
In related sector movement, peers Halliburton and NOV each declined more than 2%, while Baker Hughes posted a slight gain. The S&P 500 index fell 1.57% during the session.
Separately, SLB recently highlighted its technological advancements, noting it moved up 10 positions to rank 77th on the 2026 Patent 300 list after securing 590 new U.S. patents in the past year. Analyst firm Johnson Rice increased its price target on SLB to $59 from $45, maintaining an "Accumulate" rating.
Investors are now monitoring for further details on the Indonesian project and potential commentary from management at the upcoming DEP Thrive Conference in Houston on February 25. The timing of offshore developments remains a consideration, as prolonged project timelines and sustained oil price weakness could impact future capital spending plans.
