SLB.N

SLB Reports ThirdQuarter 2024 Financial Results

authorIntellectia.AI

2024-10-183mins

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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