Schlumberger Q4: Earnings Beat, Dividend Boost, Offshore Boom And More

Schlumberger N.V. SLB shares are trading higher after the company reported better-than-expected fourth-quarter 2024 results.

Revenue grew 3% year over year to $9.28 billion, beating the consensus of $9.18 billion.

North America rose 7%, driven by growth in offshore activity in the U.S. Gulf of Mexico and higher Asset Performance Solutions revenue in Canada, despite lower drilling activity in U.S. land.

International revenue improved 3% year-over-year, while revenue in Latin America declined 3% sequentially, driven primarily by reduced drilling activity in Mexico.

Adjusted EPS increased 7% to 92 cents, above the consensus of 90 cents.

Revenue by Division: Digital & Integration $1.156 billion (+10% Y/Y); Reservoir Performance $1.81 billion (+4% Y/Y); Well Construction $3.267 billion (-5% Y/Y), and Production Systems $3.197 billion (+9% Y/Y).

Adjusted EBITDA was $2.382 billion for the quarter, an increase of 5% Y/Y, and margin expanded 33 bps to 25.7%. The pretax segment operating margin contracted by 12 bps for the quarter to 20.7%.

Operating cash flow for the fiscal totaled $6.602 billion compared to $6.637 billion a year ago, and free cash flow was $3.99 billion.

For the quarter, cash flow from operations was $2.39 billion, and free cash flow was $1.631 billion.

Dividend: SLB declared a quarterly cash dividend increase of 3% to $0.285 from $0.275 per share, payable on April 3, 2025, to stockholders of record on February 5, 2025.

In the quarter, SLB repurchased 11.8 million shares for $501 million, totaling 38.4 million shares for the year. On December 20, 2024, SLB initiated $2.3 billion in accelerated share repurchase transactions, with 80% of shares delivered by January 13, 2025. This positions the company to increase total return to shareholders from $3.3 billion in 2024 to a minimum of $4 billion in 2025.

“With the anticipated completion of our announced acquisition of ChampionX, we are set to further strengthen our production and recovery capabilities, enabling us to deliver even greater value to our customers. This strategic acquisition will also enhance the resilience of the SLB portfolio, providing some stability against the cycles in the years to come,” commented SLB Chief Executive Officer Olivier Le Peuch.

“SLB remains committed to expanding EBITDA margins, generating strong cash flows, and increasing returns to shareholders,” Le Peuch concluded.

Price Action: SLB shares are trading higher by 1.90% at $41.87 premarket at the last check Friday.

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