On October 18, 2024, Schlumberger Ltd (SLB, Financial) released its 8-K filing for the third quarter of 2024. As the largest oilfield service firm globally, SLB continues to leverage its expertise in reservoir performance, well construction, and digital solutions to maintain its industry leadership.
Financial Performance Overview
Schlumberger Ltd (SLB, Financial) reported third-quarter revenue of $9,159 million, slightly below the analyst estimate of $9,249.98 million. However, the company matched the estimated earnings per share (EPS) of $0.89, excluding charges and credits. This performance underscores SLB's ability to navigate a challenging macroeconomic environment, marked by cautious spending from international producers and subdued land activity in the U.S.
Key Financial Achievements
SLB's financial achievements in the third quarter highlight its strategic focus on cost optimization and digital transformation. The company achieved an adjusted EBITDA of $2,343 million, reflecting a 13% year-on-year increase, and an adjusted EBITDA margin of 25.6%, surpassing its full-year goal of 25%. These metrics are crucial for SLB as they indicate robust operational efficiency and profitability in the oil and gas industry.
Income Statement Highlights
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | Sequential Change | Year-on-Year Change |
|---|---|---|---|---|---|
| Revenue | $9,159 million | $9,139 million | $8,310 million | 0% | 10% |
| Net Income | $1,186 million | $1,112 million | $1,123 million | 7% | 6% |
| Diluted EPS | $0.83 | $0.77 | $0.78 | 8% | 6% |
Geographical and Divisional Insights
SLB's revenue growth was driven by its international operations, which saw a 12% year-on-year increase. The Middle East & Asia regions contributed significantly, with a 16% growth, offsetting declines in Latin America. The Digital & Integration division led the results with a 4% sequential revenue increase, driven by a 7% growth in digital business.
“SLB delivered strong third-quarter results, achieving earnings growth and margin expansion in line with our full-year adjusted EBITDA margin goal of 25% or higher,” said SLB Chief Executive Officer Olivier Le Peuch.
Strategic Initiatives and Future Outlook
SLB continues to focus on digital transformation and cost optimization to enhance its market position. The company is leveraging its digital leadership and expanding its presence in low-carbon markets, such as carbon capture and storage. Despite a cautious macro environment, SLB remains well-positioned to deliver sustained cash flows and shareholder returns.
SLB's strategic acquisitions, such as the Aker subsea business, have bolstered its Production Systems division, contributing to a 31% year-on-year revenue growth. The company's commitment to returning value to shareholders is evident in its accelerated share repurchase program and dividend payouts.
Overall, Schlumberger Ltd (SLB, Financial) demonstrates resilience and adaptability in a dynamic market, with a strong focus on innovation and operational excellence to drive future growth.
Explore the complete 8-K earnings release (here) from Schlumberger Ltd for further details.
