In This Article:
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Fourth Quarter Revenue: $9.3 billion, increased 1% sequentially.
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Full Year Revenue: $36.3 billion, grew 10% year on year.
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Free Cash Flow (Q4): $1.63 billion.
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Full Year Free Cash Flow: $4 billion.
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Adjusted EBITDA Margin (Q4): 25.7%, cycle high.
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Full Year Adjusted EBITDA Margin: 25%, increased by 52 basis points year on year.
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Digital Revenue (Full Year): $2.44 billion, grew 20% year on year.
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Net Debt (End of Q4): Reduced by $1.1 billion to $7.4 billion.
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Capital Investments (Full Year): $2.6 billion.
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Shareholder Returns (Full Year): $3.3 billion in dividends and stock repurchases.
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Planned Shareholder Returns (2025): Minimum of $4 billion.
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Accelerated Share Repurchase: $2.3 billion of common stock.
Release Date: January 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Schlumberger Ltd (NYSE:SLB) achieved solid earnings and free cash flow, with a strong performance in the Middle East and North America.
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The company reported a new record high for international revenue in the fourth quarter, demonstrating the strength of its diversified portfolio.
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Digital revenue grew by 20% for the full year, exceeding targets, driven by strategic partnerships and increased demand for cloud computing and AI.
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SLB's Production Systems division led growth with a 24% increase, supported by double-digit revenue increases in surface systems, completions, and artificial lift.
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The company is expanding its exposure beyond oil and gas, with significant growth momentum in low-carbon markets and data center infrastructure solutions, generating over $850 million in revenue in 2024.
Negative Points
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The rate of upstream investment growth continued to moderate, with declines in Saudi Arabia and Mexico impacting overall performance.
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North American revenue declined by 1% year-on-year, with pricing pressure affecting margins despite higher digital revenues.
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The offshore market is expected to experience a muted environment in 2025 due to white space in deepwater activity.
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SLB's revenue in Russia continues to decline, accounting for only 4% of global revenue in 2024.
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The company anticipates flat revenue growth for 2025, with some regions experiencing reduced spending, such as Saudi Arabia, Egypt, and Australia.
Q & A Highlights
Q: In your outlook, can you simplify Schlumberger's exposure by identifying regions with the most potential upside and downside? A: The Middle East remains a bright spot despite a decline in Saudi Arabia, with growth in UAE, Iraq, and Kuwait. Gas production is expected to expand significantly. Deepwater activity has a gap this year but is expected to pick up in 2026. The international gas market will continue to drive long-term investments.