On July 19, 2024, Schlumberger Ltd (SLB, Financial) released its 8-K filing for the second quarter of 2024. SLB, the largest oilfield service firm globally, reported robust financial results, surpassing analyst estimates for both earnings per share (EPS) and revenue.
Company Overview
Schlumberger Ltd (SLB, Financial) is renowned for its expertise in various disciplines, including reservoir performance, well construction, production enhancement, and digital solutions. The company is a leading innovator in the oilfield services industry, holding a dominant market share across numerous end markets.
Performance Highlights
SLB reported a revenue of $9.14 billion for Q2 2024, a 5% sequential increase from Q1 2024 and a 13% year-on-year increase from Q2 2023. The company's net income attributable to SLB was $1.11 billion, reflecting a 4% sequential increase and an 8% year-on-year increase. The diluted EPS on a GAAP basis was $0.77, up 4% sequentially and 7% year-on-year.
Financial Achievements
SLB's adjusted EBITDA for Q2 2024 was $2.29 billion, an 11% sequential increase and a 17% year-on-year increase. The adjusted EBITDA margin expanded to 25.0%, up 142 basis points (bps) sequentially and 81 bps year-on-year. The pretax segment operating income was $1.85 billion, a 12% sequential increase and a 17% year-on-year increase, with a pretax segment operating margin of 20.3%.
Geographical and Divisional Performance
| Geographical Area | Revenue (in millions) | Sequential Change | Year-on-Year Change |
|---|---|---|---|
| North America | $1,644 | 3% | -6% |
| Latin America | $1,742 | 5% | 7% |
| Europe & Africa | $2,442 | 5% | 20% |
| Middle East & Asia | $3,268 | 6% | 24% |
SLB's revenue growth was driven by strong performance in international markets, particularly in the Middle East & Asia, which saw a 6% sequential increase and a 24% year-on-year increase. The company's core divisions—Reservoir Performance, Well Construction, and Production Systems—also showed significant growth.
Commentary from SLB CEO
"We achieved solid second-quarter results, with broad-based international revenue growth and margin expansion across all Divisions. Our Core business continued to build on its positive momentum and our digital business accelerated, resulting in our highest quarterly international revenue since 2014," said SLB CEO Olivier Le Peuch.
Income Statement and Key Metrics
SLB's income before taxes on a GAAP basis was $1.42 billion, a 5% sequential increase and a 10% year-on-year increase. The company's diluted EPS, excluding charges and credits, was $0.85, a 13% sequential increase and an 18% year-on-year increase.
Analysis and Outlook
SLB's strong financial performance in Q2 2024 underscores its robust position in key markets and its ability to capitalize on elevated activity in the Middle East & Asia. The company's focus on digital solutions and technological innovation continues to drive growth and margin expansion. With ongoing momentum in international markets and strong digital sales, SLB is well-positioned to achieve its full-year growth ambitions.
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Explore the complete 8-K earnings release (here) from Schlumberger Ltd for further details.
