Schlumberger(SLB)2025-01-22 17:33Revenue and Operations - Non-US operations accounted for approximately 85% of consolidated revenue in 2024, 84% in 2023, and 2022[63]. - Russia represented approximately 4% of worldwide revenue during 2024, with net assets in Russia valued at approximately 121 million, while a 10% depreciation would increase it by 10.0 billion in various foreign currencies, with $4.5 billion related to hedges of debt balances denominated in currencies other than the functional currency[177]. - SLB's foreign currency risk management strategy includes using derivative instruments to hedge against currency fluctuations, which is essential for managing the impact of changes in foreign exchange rates on earnings[175]. Sustainability and Environmental Risks - The transition of the global energy sector to include renewable energy sources could affect customer expenditure levels[60]. - The company must adapt its technology portfolio to address the energy transition and develop low-carbon technologies[67]. - SLB's sustainability goals, including net-zero emissions targets, expose the company to operational, reputational, financial, and legal risks, as achieving these goals is subject to numerous factors beyond its control[86]. - Severe weather events, potentially exacerbated by climate change, have historically affected SLB's operations and financial results, leading to increased operating costs or decreased revenue[89]. - Environmental compliance costs and liabilities due to stringent regulations could materially impact SLB's financial condition and operations[81]. Competitive Landscape and Technology - The energy industry is highly competitive, and failure to maintain technology leadership could adversely affect market share and pricing[72]. - Cybersecurity incidents could materially affect the company's reputation and financial condition[68]. Acquisition Risks - The proposed acquisition of ChampionX may not be completed due to failure to obtain required regulatory approvals, which could adversely affect SLB's stock price and result in costs related to the acquisition[84]. - If the acquisition of ChampionX is completed, the success will depend on SLB's ability to combine its business with ChampionX to realize anticipated synergies and growth opportunities[85]. Human Resources - The company faces risks related to attracting and retaining qualified personnel, which is critical for its operations and could increase costs during periods of high demand[88].