A promise to continue returning billions of dollars to shareholders couldn't make up for a lackluster first quarter from Schlumberger (SLB -1.23%) on Friday. After the company unveiled those results, investors generally traded out of the stock and left it with a nearly 2% loss on the day. Meanwhile, the S&P 500 index landed in positive territory with a 0.6% increase.Drops in headline fundamentalsBoth revenue and profitability declined for Schlumberger on a year-over-year basis during the quarter. The former ...

Schlumberger (SLB) Q1 2025 Earnings Call April 25, 2025 04:39 PM ET Company Participants James McDonald - Senior Vice President of Investor Relations and Industry AffairsOlivier Le Peuch - CEOStephane Biguet - Executive VP & CFOJ. David Anderson - Managing DirectorScott Gruber - Director - Oilfield Services & Equipment ResearchNeil Mehta - Head of Americas Natural Resources Equity ResearchStephen Gengaro - Managing DirectorKeith Mackey - Director - Global Equity Research, Oil & Gas Services Conference Call ...

SLB (SLB) reported first-quarter 2025 earnings of 72 cents per share (excluding charges and credits), which missed the Zacks Consensus Estimate of 74 cents. The bottom line also decreased from the year-ago quarter’s level of 75 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The oilfield service giant recorded total quarterly revenues of $8.49 billion, which missed the Zacks Consensus Estimate of $8.59 billion. The top line declined from the year-ago quarter’s figure of $8.71 ...

Revenue Performance - First-quarter 2025 revenue of $8.5 billion decreased 3% year on year, with North America revenue growing by 8% to $1.7 billion, while international revenue declined 5% to $6.7 billion[64]. - Digital & Integration revenue increased 6% year on year to $1.0 billion, driven by a 17% growth in digital revenue, despite lower APS revenue due to a temporary disruption[68]. - Reservoir Performance revenue of $1.7 billion declined 1% year on year, with a pretax operating margin of 17% decreasing by 311 basis points due to lower evaluation activity[70]. - Well Construction revenue of $3.0 billion declined 12% year on year, with a pretax operating margin of 20% decreasing by 71 basis points due to reduced drilling activity[72]. - Production Systems revenue of $2.9 billion increased 4% year on year, with a pretax operating margin of 16% increasing by 197 basis points due to improved profitability[73]. - Internationally, Latin America revenue of $1.5 billion declined 10% year on year, primarily due to reduced drilling activity in Mexico[66]. Financial Metrics - The effective tax rate for Q1 2025 was 22%, up from 19% in Q1 2024, primarily due to charges and credits that did not result in a tax benefit[85]. - Net income for the first three months of 2025 was $829 million, down from $1,098 million in the same period of 2024, representing a decrease of approximately 24.5%[92]. - Cash flow from operations increased to $660 million in Q1 2025, compared to $327 million in Q1 2024, marking a growth of approximately 102%[92]. - Free cash flow for Q1 2025 was $103 million, a significant improvement from a negative $222 million in Q1 2024[92]. - SLB's net debt increased to $10.105 billion by the end of Q1 2025, up from $8.679 billion at the end of Q1 2024[92]. Capital Investments and Shareholder Returns - Capital investments totaled $600 million in Q1 2025, up from $500 million in Q1 2024, with full-year 2025 capital investments expected to be around $2.3 billion[94]. - SLB announced a 3.6% increase in its quarterly cash dividend from $0.275 to $0.285 per share, with dividends paid in Q1 2025 amounting to $386 million compared to $357 million in Q1 2024[94]. - SLB entered into accelerated share repurchase agreements to buy back $2.3 billion of its common stock, completing the repurchase of 56.8 million shares at an average price of $40.51[94]. Cash and Liquidity - Cash as of March 31, 2025, was $2.936 billion, an increase from $2.788 billion year on year, while net debt increased to $(10.105) billion[91]. - As of March 31, 2025, SLB had $3.9 billion in cash and short-term investments, along with $5.0 billion in committed debt facilities, sufficient to meet business requirements for at least the next 12 months[93]. Other Notable Items - Charges and credits for Q1 2025 totaled $206 million, with workforce reductions accounting for $158 million of this amount[89]. - SLB recorded revenue of approximately $100 million related to the Palliser APS project in Q1 2025, with a planned cash proceeds of about $430 million from its sale expected to close in Q2 2025[96]. - Only three countries accounted for more than 5% of SLB's net receivable balance, with the United States representing over 10% and Mexico at 7%[95].

Schlumberger (SLB) came out with quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.70%. A quarter ago, it was expected that this world's largest oilfield services company would post earnings of $0.90 per share when it actually produced earnings of $0.92, delivering a surprise of 2.22%.Over the las ...

Financial Performance - Revenue for Q1 2025 was $8.49 billion, a decrease of 3% year-on-year[4] - Net income attributable to SLB was $797 million, down 25% year-on-year[4] - Adjusted EBITDA was $2.02 billion, a decrease of 2% year-on-year[4] - SLB's revenue for Q1 2025 was $8,490 million, a decrease of 2.5% compared to $8,707 million in Q1 2024[46] - Net income attributable to SLB for Q1 2025 was $797 million, down 25.4% from $1,068 million in Q1 2024[46] - SLB's diluted earnings per share (EPS) for Q1 2025 was $0.58, compared to $0.74 in Q1 2024, reflecting a 21.6% decline[46] - Total revenue for the first quarter of 2025 was $8,490 million, a decrease of 8% sequentially from $9,284 million in the fourth quarter of 2024 and a decrease of 4% year-on-year from $8,707 million in the first quarter of 2024[53] - Adjusted EBITDA for the first quarter of 2025 was $2,020 million, with an adjusted EBITDA margin of 23.8%, compared to $2,382 million and 25.7% in the fourth quarter of 2024, and $2,057 million and 23.6% in the first quarter of 2024[65] - Cash flow from operations for the first quarter of 2025 was $660 million, while free cash flow was $103 million[56] - Net income attributable to SLB for the first quarter of 2025 was $797 million, compared to $1,095 million in the fourth quarter of 2024 and $1,068 million in the first quarter of 2024[66] Revenue Breakdown - Revenue in North America increased 8% year-on-year to $1.72 billion, driven by higher digital sales and subsea production systems[27] - International revenue decreased by 5% year-on-year, primarily due to a slowdown in Mexico and lower activity in Russia[21] - Reservoir Performance revenue declined 1% year-on-year to $1.70 billion, with strong unconventional stimulation offset by lower evaluation and exploration activity[33] - Well Construction revenue decreased 12% year-on-year to $2.98 billion, reflecting lower drilling activity in several regions[36] - Production Systems revenue increased 4% year-on-year to $2.94 billion, supported by strong demand for surface production systems and data center infrastructure solutions[38] - Revenue from the Reservoir Performance division for the first quarter of 2025 was $1,700 million, down 6% year-on-year[68] - Revenue from the Well Construction division for the first quarter of 2025 was $2,977 million, down 11% year-on-year[68] - Revenue from the Production Systems division for the first quarter of 2025 was $2,938 million, up 4% year-on-year[68] Shareholder Returns - SLB is committed to returning a minimum of $4 billion to shareholders in 2025 through dividends and share repurchases[15] - An accelerated share repurchase transaction was completed, repurchasing $2.3 billion of common stock at an average price of $40.51[18] - Total shares outstanding as of March 31, 2025, were 1.360 billion, down from 1.401 billion at the end of the previous quarter[61] - SLB's capital allocation plans include dividend plans and share repurchase programs, reflecting a focus on returning value to shareholders[71] Digital Initiatives and Innovations - Digital revenue grew 17% year-on-year, contributing to a 6% increase in Digital & Integration revenue[13] - SLB entered into an agreement to purchase Interactive Network Technologies, Inc. to enhance its digital platform capabilities[17] - Digital & Integration revenue reached $1.01 billion, a 6% year-on-year increase driven by 17% growth in digital revenue[30] - SLB launched EWC™ electric well control technologies to enhance drilling operations and reduce costs[42] - SLB partnered with Shell to deploy Petrel™ subsurface software globally, aimed at increasing digital capabilities and operational efficiencies[43] Operational Efficiency and Cost Management - Digital & Integration pretax operating margin expanded 380 bps year-on-year to 30% due to improved profitability and cost efficiency[31] - Reservoir Performance pretax operating margin decreased 311 bps year-on-year to 17% due to reduced profitability from lower evaluation activity[34] - Well Construction pretax operating margin declined 71 bps year-on-year to 20% amid reduced activity across markets[37] - The company emphasizes the importance of operational efficiencies and cost reduction strategies in achieving its financial targets[73] Strategic Projects and Collaborations - SLB has been awarded a contract in Malaysia for a three-year digital transformation project, focusing on AI-driven safety and sustainability solutions[44] - The company is collaborating with PT. Pertamina in Indonesia to deploy AI and machine learning solutions, enhancing operational efficiency[44] - SLB's carbon capture plant in Norway is expected to capture 350,000 metric tons of CO2 annually, contributing to sustainability efforts[44] - The modular carbon capture plant in the Netherlands has a capacity to capture up to 100,000 metric tons of CO2 per year, aimed at the horticulture and food sectors[44] - SLB is developing Canada's first next-generation geothermal project, targeting up to 30 megawatts of emissions-free power generation[44] Market Risks and Future Outlook - SLB's first-quarter 2025 earnings report includes forward-looking statements regarding financial and performance targets, emphasizing uncertainty in oil and natural gas demand and prices[71] - The ongoing conflict in Ukraine is highlighted as a risk factor impacting global energy supply and market conditions[71] - SLB's financial performance is subject to various risks, including inflation, foreign currency risk, and changes in government regulations[73] - SLB's future results may vary significantly from projections due to uncertainties in global economic conditions and customer spending[73] - The company anticipates challenges in integrating the businesses of SLB and ChampionX, including retaining key personnel and maintaining customer relationships[72] - The proposed transaction between SLB and ChampionX is expected to create synergies and value, with the SEC declaring the registration statement effective on May 15, 2024[74] - Investors are encouraged to review the proxy statement/prospectus for important information regarding the proposed transaction with ChampionX[74]

Core Viewpoint - SLB is expected to report first-quarter 2025 results on April 25, with adjusted earnings anticipated to show a slight decline compared to the previous year, despite a favorable crude pricing environment supporting upstream investments [1][2][5]. Earnings Performance - In the last reported quarter, SLB's adjusted earnings were 92 cents per share, exceeding the Zacks Consensus Estimate of 90 cents, driven by broad-based earnings growth and margin expansion, particularly in the Middle East and Asia [1]. - SLB has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 1.8% [1]. Earnings Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is 74 cents, reflecting a 1.3% decline from the prior year's reported figure [2]. - Revenue estimates stand at $8.6 billion, indicating a 1.2% decrease from the previous year [2]. Market Conditions - Favorable crude prices have been reported, with West Texas Intermediate spot prices averaging $75.74, $71.53, and $68.24 per barrel for January, February, and March respectively, supporting exploration and production activities [3]. - Increased upstream investments are expected to boost demand for SLB's services, particularly in reservoir optimization and well construction [4]. Industry Trends - While drilling activity in the North American land market has been subdued, international drilling activity has shown modest growth, especially in the Middle East, which is likely to benefit SLB's earnings [4]. - A strong focus on global energy security and increased spending on exploration and production are anticipated to positively impact SLB's profitability in the upcoming quarter [5]. Earnings Expectations - SLB has an Earnings ESP of +0.20%, indicating a potential earnings beat, supported by a Zacks Rank of 3 (Hold) [6].

Core Insights - Analysts project Schlumberger (SLB) will report quarterly earnings of $0.74 per share, a decline of 1.3% year over year, with revenues expected to reach $8.6 billion, down 1.2% from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.9% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Revenue from Digital & Integration is estimated at $988.06 million, reflecting a year-over-year increase of 3.7% [5] - Revenue from Reservoir Performance is projected at $1.73 billion, indicating a slight increase of 0.2% from the prior year [5] - Revenue from Production Systems is expected to reach $2.97 billion, showing a year-over-year growth of 5.2% [5] - Revenue from Well Construction is forecasted at $3.03 billion, representing a significant decline of 10% year over year [6] - North America revenue is estimated at $1.60 billion, a 0.4% increase from the previous year [6] - Latin America revenue is projected at $1.50 billion, reflecting a decline of 9.2% year over year [6] - Revenue from Europe & Africa is expected to be $2.28 billion, down 1.9% year over year [7] - Revenue from the Middle East & Asia is projected at $3.13 billion, indicating a year-over-year increase of 1.5% [7] Income Before Taxes Estimates - Income Before Taxes from Digital & Integration is estimated at $292.93 million, up from $254 million in the same quarter last year [8] - Income Before Taxes from Reservoir Performance is projected at $334.53 million, slightly down from $339 million year over year [8] - Income Before Taxes from Production Systems is expected to be $438.85 million, an increase from $400 million in the previous year [9] - Income Before Taxes from Well Construction is estimated at $586.44 million, down from $690 million year over year [9] Stock Performance - Schlumberger shares have decreased by 17% in the past month, compared to an 8.9% decline in the Zacks S&P 500 composite [9]

The market expects Schlumberger (SLB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

SLB (SLB) , a global oilfield services firm, has announced a collaboration with the British energy giant Shell plc (SHEL) . Under this partnership, SLB will deploy the Petrel subsurface software across Shell’s global asset base. The Petrel subsurface software, developed by SLB, is a powerful tool for exploration and production that enables its users to analyze subsurface data and gain more information about the reservoir.The software will be aimed at enhancing Shell’s digital competencies. The adoption of t ...