SLB (SLB, Financial) announced its third-quarter 2023 results on October 20, 2023, revealing a strong performance with an 11% year-on-year increase in revenue to $8.31 billion. The company's net income attributable to SLB on a GAAP basis rose by 24% year-on-year to $1.123 billion, while diluted EPS on a GAAP basis increased by 24% to $0.78. Adjusted EBITDA grew by 18% year-on-year to $2.081 billion, with a margin of 25%, marking a new cycle high.
Financial Performance
SLB's revenue growth was driven by strong performance in international markets, which saw a 12% increase in revenue year-on-year, outpacing North America's growth of 6%. The company's pretax segment operating margin expanded by 153 basis points to 20%, marking the 11th consecutive quarter of year-on-year growth in this metric.
SLB's CEO, Olivier Le Peuch, commented on the results, stating,
Our third-quarter results continue to reflect strong year-to-date performance with revenue and adjusted EBITDA growth of 19% and 28%, respectively. These results, which reinforce our full-year financial ambitions, were driven by sustained growth in the international markets, where we posted our ninth consecutive quarter of double-digit year-on-year growth."
Divisional Performance
The company's Digital & Integration division saw a 4% sequential increase in revenue to $982 million, while the Reservoir Performance division reported a 2% sequential increase in revenue to $1.68 billion. The Well Construction division's revenue increased by 2% sequentially to $3.43 billion, and the Production Systems division reported a 2% sequential increase in revenue to $2.37 billion.
Outlook and Other Events
Looking ahead, SLB expects continued sequential revenue growth in the fourth quarter, driven by year-end sales in Digital & Integration and seasonal product and equipment sales in Production Systems. The company also announced that it repurchased 2.6 million shares of its common stock at an average price of $57.46 per share for a total purchase price of $151 million during the quarter.
On October 2, 2023, SLB, Aker Solutions, and Subsea7 closed their previously-announced joint venture, OneSubsea, which aims to drive innovation and efficiency in subsea production. On October 19, 2023, SLB’s Board of Directors approved a quarterly cash dividend of $0.25 per share of outstanding common stock, payable on January 11, 2024, to stockholders of record on December 6, 2023.
