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SLB Beats on Q4 Earnings, Provides '25 Capex Guidance
SLBSchlumberger(SLB) ZACKS·2025-01-17 15:15

Core Viewpoint - SLB reported strong fourth-quarter 2024 earnings, exceeding expectations with earnings of 92 cents per share and total revenues of 9.28billion,reflectinggrowthfromthepreviousyear[1][2].FinancialPerformance−Thequarterlyearningsgrowthwasdrivenbybroad−basedearningsgrowthandmarginexpansion,particularlyintheMiddleEastandAsia,alongsideadvancementsinAIandautonomousoperations[2].−SLB′sfreecashflowforthefourthquarterwas9.28 billion, reflecting growth from the previous year [1][2]. Financial Performance - The quarterly earnings growth was driven by broad-based earnings growth and margin expansion, particularly in the Middle East and Asia, alongside advancements in AI and autonomous operations [2]. - SLB's free cash flow for the fourth quarter was 1.63 billion, with cash and short-term investments totaling approximately 4.67billionandlong−termdebtat4.67 billion and long-term debt at 11.02 billion [7]. Segmental Performance - Digital & Integration unit revenues reached 1,156million,a101,156 million, a 10% increase year over year, with pre-tax operating income of 442 million, up 24% [3]. - Reservoir Performance unit revenues increased 4% to 1.81billion,withpre−taxoperatingincomeof1.81 billion, with pre-tax operating income of 370 million, remaining flat year over year [4]. - Well Construction segment revenues fell 5% to 3.27billion,withpre−taxoperatingincomedecreasing123.27 billion, with pre-tax operating income decreasing 12% to 681 million [5]. - Production Systems segment revenues amounted to 3.19billion,up93.19 billion, up 9% year over year, with pre-tax operating income improving 14% to 506 million [6]. Outlook - SLB anticipates full-year 2025 capital investment to be approximately 2.3billion,lowerthanthe2024levelof2.3 billion, lower than the 2024 level of 2.6 billion [8].