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Schlumberger N.V. (NYSE:SLB) is looking strong after delivering impressive fourth-quarter 2024 results that exceeded expectations, driving share price up by up to 7.8% this morning. Revenue jumped 3% year-over-year to $9.28 billion, driven by solid growth in North Americaespecially offshore activity in the U.S. Gulf of Mexico. The international market also saw a 3% uptick, though Latin America took a hit with a 3% decline in revenue due to weaker drilling activity in Mexico. Adjusted EPS rose 7%, hitting 92 cents, outpacing the 90-cent consensus.
Full-year results were just as solid, with Schlumberger posting $36.29 billion in revenue, up 10% from the previous year. The company also delivered a 14% rise in adjusted EPS to $3.41, showing its ability to grow even in tough times. Free cash flow for the quarter hit $1.63 billion, and Schlumberger boosted its quarterly dividend by 3.6%, now at $0.285 per share. Add to that a $2.3 billion accelerated share repurchase program, with 80% of shares already delivered by mid-January 2025this is a company serious about rewarding shareholders.
Looking ahead, Schlumberger is positioning itself for even more growth with the acquisition of ChampionX. This strategic move will enhance its capabilities in production and recovery, providing stability against market cycles. With a strong track record of increasing margins, generating robust cash flow, and returning value to shareholders, Schlumberger is in great shape to continue delivering. Investors should keep SLB on their radar as the company stays ahead of the curve in the energy sector.
This article first appeared on GuruFocus.