SLB

Latest Results (17.12.2024):

Revenue Growth

In the third quarter of 2024, SLB reported a revenue of $9,159 million, marking a slight increase from the previous quarter's $9,139 million and a significant rise from $8,310 million in the same quarter of the previous year. This growth was primarily driven by the company's international operations, which contributed $7,425 million to the total revenue, despite a slight sequential decline.

Income and Earnings

SLB's income before taxes on a GAAP basis reached $1,507 million in the third quarter of 2024, reflecting a 6% increase from the previous quarter and an 8% rise year-on-year. The net income attributable to SLB was $1,186 million, showing a 7% sequential increase and a 6% increase compared to the same period last year. The diluted earnings per share (EPS) on a GAAP basis was $0.83, up by 8% sequentially and 6% year-on-year.

Segment Performance

Among SLB's divisions, the Digital & Integration segment showed notable growth with a 4% sequential increase in revenue, driven by a 7% rise in the digital business. The Production Systems division also performed well, with a 3% sequential revenue increase and a 31% year-on-year rise, achieving record quarterly revenue. However, the Well Construction segment experienced a 3% decline in revenue due to reduced drilling activities.

Cash Flow and Shareholder Returns

SLB generated a strong cash flow from operations amounting to $2.45 billion in the third quarter of 2024, with a free cash flow of $1.81 billion. The company returned approximately $900 million to shareholders through stock repurchases and dividends during the quarter, bringing the total return to shareholders for the first nine months of the year to $2.38 billion. SLB plans to exceed its $3.0 billion return to shareholders commitment for the year.

Outlook and Strategic Focus

Looking ahead, SLB remains focused on international, digital, and cost optimization strategies to navigate the evolving market conditions. Despite a cautious macro environment, the company anticipates sustained upstream investment and aims to deliver strong cash flows with a full-year adjusted EBITDA margin at or above 25%. SLB's digital leadership and presence in emerging low-carbon markets are expected to support a balanced portfolio and further margin expansion.