Schlumberger’s 2024 results highlight strong growth and AI innovation

ByInvestment Club

Overview

Schlumberger (SLB), the leading provider of technology, integrated project management services and information solutions for clients active in the global oil and gas industry, reported on January 17th strong financial results for the fourth quarter and full-year 2024, with full-year revenue of $36.29bn and adjusted EBITDA of $9.07bn.

In Q4, the company delivered revenue of $9.28bn, adjusted EPS of $0.92, and net income attributable to SLB of $1.10bn. Full-year cash flow from operations totaled $6.60bn, with free cash flow of $3.99bn.

Additionally, the board approved a quarterly dividend of $0.285 per share, highlighting SLB’s focus on delivering value to shareholders.

Fourth Quarter 2024:

  • Revenue increased to $9.28bn (+3% YoY).
  • GAAP Earnings Per Share (EPS) of $0.77, consistent with the prior year.
  • Adjusted EPS (excluding charges and credits) rose to $0.92 (+7% vs. Q4 2023).
  • Net Income of $1.10bn, a slight 2% decrease year-over-year.
  • Adjusted EBITDA increased to $2.38bn (+5% vs. 2023).

Full-Year 2024 performance:

  • Revenue rising to $36.29bn (+10% vs. 2023), with a 12% increase in international revenues.
  • GAAP EPS of $3.11 (+7% YoY), exceeding analysts’ estimates by approximately 2%.
  • Adjusted EPS recorded a value of $3.41 (+14% vs. 2023).
  • Net Income for the full year was $4.46bn (+6% increase over the previous year).
  • Adjusted EBITDA reached the value of $9.07bn (+12% YoY).
  • SLB’s Board approved a 3.6% increase in the quarterly cash dividend, raising it to $0.285 per share.
  • The company initiated an accelerated share repurchase program, committing $2.3bn to repurchase common stock, with a target to return at least $4bn to shareholders in 2025, up from $3.3bn in 2024.
  • The Digital & Integration segment experienced a 20% revenue growth in 2024, driven by increased demand for digital products and solutions, including artificial intelligence (AI) and cloud-based platforms.

CEO Olivier Le Peuch emphasized AI as a critical factor for industry leadership, stating: “2024 was a strong year for SLB as we successfully navigated evolving market conditions to deliver revenue and EBITDA growth, margin expansion and solid free cash flow. Digital & Integration revenue increased 10% year on year, driven by 20% growth in digital, which reached $2.44 billion for the year. Accelerated adoption of our digital technologies marked a milestone year, highlighted by strategic collaborations with cross-industry leaders, the launch of the Lumi™ data and AI platform, new Performance Live™ centers to enable remote operations, and the achievement of fully autonomous drilling operations. AI is the X factor for our industry, and I am confident that SLB will continue to be a leader in this area, enabling us to deliver sustained outperformance for our customers, partners and shareholder.”

Author: Ionuț-Adrian Lazar

Similar Posts