SLB Reports ThirdQuarter 2024 Financial Results
Intellectia.AI2024-10-18
SLB Reports Third-Quarter 2024 Financial Results
Houston—SLB (NYSE: SLB) announced its financial results for the third quarter of 2024, showing steady revenue and solid earnings amidst a challenging macroeconomic climate.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 | YoY Change (%) | QoQ Change (%) | Consensus Estimate |
|---|---|---|---|---|---|---|
| Revenue | $9.16 billion | $9.16 billion | $8.32 billion | +10% | 0% | $9.25 billion |
| GAAP EPS | $0.83 | $0.77 | $0.78 | +6% | +8% | $0.88 |
| Adjusted EPS | $0.89 | $0.85 | $0.78 | +14% | +5% | - |
| Net Income | $1.19 billion | $1.11 billion | $1.12 billion | +6% | +7% | - |
| Adjusted EBITDA | $2.34 billion | $2.29 billion | $2.07 billion | +13% | +2% | - |
Interpretation: SLB managed to expand its earnings per share year-on-year and maintain sequential revenue stability, though it narrowly missed the revenue consensus estimate of $9.25 billion. The increased EBITDA and EPS highlight operational efficiencies and strategic cost management.
Revenue Breakdown by Segment
| Segment | Q3 2024 Revenue | QoQ Change | YoY Change |
|---|---|---|---|
| Digital & Integration | $1.09 billion | +4% | +11% |
| Reservoir Performance | $1.82 billion | 0% | +9% |
| Well Construction | $3.31 billion | -3% | -3% |
| Production Systems | $3.10 billion | +3% | +31% |
Interpretation: Digital & Integration led growth largely driven by a surge in digital adoption. However, Well Construction faced declines due to decreased drilling activities in key geographic locations.
Key Developments and Operational Highlights
- Contract Awards :
- New joint ventures and contracts in the UAE, Kuwait, Oman, the North Sea, Brazil, and Namibia.
- Technology and Innovation :
- Introduction of the Lumi™ data and AI platform and advances in long-well sections with ExxonMobil.
- Decarbonization Efforts :
- Successful deployment of carbon capture technologies and renewable energy project collaborations globally.
Management Commentary
Olivier Le Peuch, CEO of SLB, emphasized the strong performance in the digital sector and resilience in core segments like Production Systems. He highlighted ongoing initiatives in increasing energy efficiency and expanding into new energy domains through strategic partnerships.
Dividends and Share Repurchase Program
The Board approved a quarterly cash dividend of $0.275 per share, payable on January 9, 2025. SLB accelerated its share repurchase program, buying back 11.3 million shares worth $501 million in the third quarter.
Forward Guidance
SLB reassured investors of robust cash flow generation and aims to exceed its $3.0 billion return to shareholders target, with anticipated full-year adjusted EBITDA margins at or above 25%.
Market Reaction
Post-earnings release, SLB's stock experienced a slight decline of 0.32%, reflecting cautious sentiment amid broader market conditions.
The company's committed focus on digital transformation, international projects, and cost optimization appears strategically poised to sustain future growth despite the current macroeconomic headwinds.
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