SLB Shares Surge

SLB reported impressive fourth-quarter earnings that exceeded analyst expectations, leading to a 4.1% rise in premarket trading. The oilfield services giant delivered robust financial performance, driven by growth across key segments.

Key Financial Highlights

• Earnings Per Share (EPS): SLB posted an EPS of $0.92, excluding charges and credits, marking a 7% year-over-year increase and surpassing the $0.90 consensus estimate.

• Revenue Growth: Quarterly revenue rose 3% to $9.28 billion, also beating forecasts.

Segment Performance

• Digital & Integration: Revenue surged 10% year-over-year to $1.16 billion, showcasing the segment’s strong momentum.

• Production Systems: Revenue grew 9% to $3.20 billion, contributing significantly to overall growth.

CEO Insights

“2024 was a strong year for SLB as we successfully navigated evolving market conditions to deliver revenue and EBITDA growth, margin expansion, and solid free cash flow,” said SLB CEO Olivier Le Peuch.

International Market Success

SLB’s international markets were a key driver of growth:

• International Revenue: Up 12% for the full year compared to 2023.

• Regional Performance: The Middle East & Asia region led with an 18% increase.

Optimistic Outlook

CEO Le Peuch expressed confidence in the long-term oil and gas investment outlook, citing factors such as:

• Global economic growth.

• Energy security concerns.

• Rising demand from AI and data centers.

Shareholder Benefits

• Dividend Increase: SLB announced a 3.6% rise in its quarterly dividend to $0.285 per share.

• Share Repurchase Program: The company entered into $2.3 billion in accelerated share repurchase agreements, signaling confidence in its stock valuation.

Full-Year 2024 Highlights

• Revenue: $36.29 billion, up 10% from 2023.

• Adjusted EPS: $3.41, a 14% increase year-over-year.

• Free Cash Flow: $3.99 billion.

• Shareholder Returns: $3.27 billion returned through dividends and share repurchases.

SLB’s strong performance in 2024 highlights its resilience and strategic growth in a dynamic market environment, reinforcing its position as a leader in the oilfield services industry.

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