Release Date: April 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Olivier, can you discuss the current oil and gas cycle and how recent contract and rig awards are shaping your outlook?
A: Olivier Le Peuch - CEO & Director, Schlumberger Limited: The cycle is characterized by strong fundamentals, with increasing energy demand and a focus on energy security, particularly in Asia. The market is supported by significant investments in capacity expansion and both short-cycle and long-cycle projects. This is leading to a stronger pipeline of projects, which is expected to prolong the cycle beyond previous expectations.
Q: How is the adoption of the DELFI platform progressing, and what are your expectations for digital growth?
A: Olivier Le Peuch - CEO & Director, Schlumberger Limited: Adoption continues to trend favorably, with quarter-over-quarter expansion. We aim for digital revenue growth in the high teens for the year, supported by increasing customer realization of the need for efficiency and lower-carbon solutions.
Q: Can you elaborate on the timing of the ChampionX deal and how it relates to the OpEx and CapEx cycles in the industry?
A: Olivier Le Peuch - CEO & Director, Schlumberger Limited: The acquisition is aligned with a strategic shift towards enhancing our capabilities in production chemicals and artificial lift solutions, areas we expect to see increased demand and innovation. This is not about anticipating a slowdown in CapEx but rather enhancing our OpEx offerings to meet growing and evolving market needs.
Q: What synergies do you anticipate from the ChampionX acquisition, and how confident are you in achieving these, especially the revenue synergies?
A: Stephane Biguet - Executive VP & CFO, Schlumberger Limited: We project $400 million in annual synergies within three years, with about 75% from cost savings and 25% from initial revenue synergies. The cost savings will largely come from internalizing spend and G&A efficiencies, while revenue synergies will be driven by leveraging our combined capabilities and market positions.
Q: How do you view the spending landscape in Saudi Arabia, especially with recent shifts towards gas development?
A: Olivier Le Peuch - CEO & Director, Schlumberger Limited: Saudi Arabia's focus is shifting towards gas, with plans to increase gas capacity significantly by 2030. This shift is expected to result in a net increase in rig counts, particularly onshore, which aligns well with our technology and market positioning in the region.
Q: What are your expectations for North America's market performance through the rest of the year?
A: Olivier Le Peuch - CEO & Director, Schlumberger Limited: We anticipate low single-digit sequential growth in North America, with the full-year performance expected to be muted due to ongoing market softness and capital discipline. However, this is expected to be offset by stronger international market performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
