Q3 2024 Schlumberger NV Earnings Call Transcript
Key Points
- Schlumberger Ltd (SLB) delivered strong third-quarter results with continued margin expansion, achieving an adjusted EBITDA margin of 25.6%.
- The company generated very strong free cash flow of $1.81 billion during the quarter.
- SLB's digital business reached a new quarterly revenue high, with pre-tax segment operating margins expanding to 36%.
- The company announced several new digital products and partnerships, including collaborations with NVIDIA and Amazon Web Services.
- SLB is well-positioned to benefit from long-cycle deepwater projects and capacity expansion projects in the Middle East, which remain economically favorable.
- Revenue was flat sequentially, indicating a more cautious approach to discretionary short-cycle spending due to commodity price pressures.
- North American revenue growth was constrained by lower drilling activity in US land, impacted by gas prices and capital discipline by operators.
- Well construction revenue decreased 3% sequentially due to lower rig count in US land and Saudi Arabia.
- The macro environment remains challenging, with commodity prices under pressure and uncertainty around OPEC+ supply releases.
- The company anticipates muted revenue growth in the fourth quarter, with potential budget exhaustion in US land and cautious spending from international customers.
Thank you, everyone, for standing by. Welcome to the third-quarter SLB earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to James R. McDonald, Senior Vice President of Investor Relations and Industry Affairs. Please go ahead.
Thank you, Leah. Good morning, and welcome to the SLB third-quarter 2024 earnings conference call. Today's call is being hosted from New York following our Board meeting held earlier this week. Joining us on the call are Olivier Le Peuch, Chief Executive Officer; and Stephane Biguet, Chief Financial Officer.
Before we begin, I would like to remind all participants that some of the statements we'll be making today are forward looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. For more information, please refer to our latest 10-K filing and other SEC filings, which can be
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