展示99
| ニュースリリース |
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SLbは2024年第3四半期の業績を発表しました
| • | 売上高は91.6億ドルで、四半期間変わらずで前年比10%増加しました |
| • | GAAP epsは0.83ドルで、四半期間8%増加し、前年比6%増加しました |
| • | 調整後のeps（費用やクレジットを除く）は0.89ドルで、四半期間5%増加し、前年比14%増加しました |
| • | SLbに帰属する当期純利益は11.9億ドルで、四半期間7%増加し、前年比6%増加しました |
| • | 調整後のebitdaは23.4億ドルで、四半期間2%増加し、前年比13%増加しました |
| • | 営業活動によるキャッシュフローは245億ドルで、フリーキャッシュフローは181億ドルでした。 |
| • | 株ごとに承認された四半期現金配当は株当たり0.275ドルでした。 |
ニューヨーク、10月 18, 2024—SLb（nyse：SLB）が2024年第3四半期の業績を発表しました。
第3四半期の結果
| 終了した三ヶ月間 | （金額は百万ドル、1株当たり金額は除く）
変化 | |||||||||||||||
| 9月30日, 2024 |
6月30日, 2024 |
9月30日, 2023 |
シーケンシャル | 前年比 | ||||||||||||
| 売上高 |
$ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10% | ||||||||
| 課税前収益 - GAAPベース |
$ | 1,507 | $ | 1,421 | $ | 1,395 | 6% | 8% | ||||||||
| 課税前収益率 - GAAPベース |
16.5 | % | 15.5 | % | 16.8 | % | 91 ベーシス ポイント | -33 ベーシス ポイント | ||||||||
| SLb に帰属する当期純利益 - GAAP 基準 |
$ | 1,186 | $ | 1,112 | $ | 1,123 | 7% | 6% | ||||||||
| 希薄化後eps - GAAP 基準 |
$ | 0.83 | $ | 0.77 | $ | 0.78 | 8% | 6% | ||||||||
| 調整後EBITDA* |
$ | 2,343 | $ | 2,288 | $ | 2,081 | 2% | 13% | ||||||||
| 調整後EBITDAマージン* |
25.6 | % | 25.0 | % | 25.0 | % | 55 ベーシス ポイント | 54 ベーシス ポイント | ||||||||
| 税引前セグメント営業利益* |
$ | 1,902 | $ | 1,854 | $ | 1,683 | 3% | 13% | ||||||||
| 税引前セグメント営業利益率* |
20.8 | % | 20.3 | % | 20.3 | % | 48 ベーシスポイント | 51 ベーシスポイント | ||||||||
| SLbに帰属する当期純利益、調整後* |
$ | 1,271 | $ | 1,224 | $ | 1,123 | 4% | 13% | ||||||||
| 希薄化後eps、調整後* |
$ | 0.89 | $ | 0.85 | $ | 0.78 | 5% | 14% | ||||||||
| 地理別売上高 |
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| 国際 |
$ | 7,425 | $ | 7,452 | $ | 6,614 | — | 12% | ||||||||
| 北米 |
1,687 | 1,644 | 1,643 | 3% | 3% | |||||||||||
| 他 |
47 | 43 | 53 | n/m | n/m | |||||||||||
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| $ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10% | |||||||||
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| （百万に表記） | ||||||||||||||||||||
| 終了した三ヶ月間 | 変化 | |||||||||||||||||||
| 9月30日, 2024 |
6月30日, 2024 |
9月30日, 2023 |
シーケンシャル | 対前年比 | ||||||||||||||||
| 部門別売上高 |
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| デジタル＆統合 |
$ | 1,088 | $ | 1,050 | $ | 982 | 4% | 11% | ||||||||||||
| リザーバー・パフォーマンス |
1,823 | 1,819 | 1,680 | — | 9% | |||||||||||||||
| 企業その他(1) |
3,312 | 3,411 | 3,430 | -3% | -3% | |||||||||||||||
| 製作システム |
3,103 | 3,025 | 2,367 | 3% | 31% | |||||||||||||||
| 他 |
(167 | ) | (166 | ) | (149 | ) | n/m | n/m | ||||||||||||
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| $ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10% | |||||||||||||
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| 部門別の税引前営業利益 |
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| デジタル＆インテグレーション |
$ | 386 | $ | 325 | $ | 314 | 19% | 23% | ||||||||||||
| リザーバー・パフォーマンス |
367 | 376 | 344 | -2% | 7% | |||||||||||||||
| 企業その他(1) |
714 | 742 | 759 | -4% | -6% | |||||||||||||||
| 製作システム |
519 | 473 | 319 | 10% | 63% | |||||||||||||||
| 他 |
(84 | ) | (62 | ) | (53 | ) | n/m | n/m | ||||||||||||
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| $ | 1,902 | $ | 1,854 | $ | 1,683 | 3% | 13% | |||||||||||||
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| 部門別の税引前営業利益率 |
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| デジタル＆統合 |
35.5 | % | 31.0 | % | 32.0 | % | 456 ベーシス ポイント | 353 ベーシス ポイント | ||||||||||||
| リザーバー・パフォーマンス |
20.1 | % | 20.6 | % | 20.5 | % | -53 ベーシス ポイント | -37 ベーシス ポイント | ||||||||||||
| 企業その他(1) |
21.5 | % | 21.7 | % | 22.1 | % | -19 ベーシスポイント | -58 ベーシスポイント | ||||||||||||
| 製作システム |
16.7 | % | 15.6 | % | 13.5 | % | 110 ベーシスポイント | 325 ベーシスポイント | ||||||||||||
| 他 |
n/m | n/m | n/m | n/m | n/m | |||||||||||||||
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| 20.8 | % | 20.3 | % | 20.3 | % | 48 bps | 51 bps | |||||||||||||
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SLb acquired the Aker subsea business during the fourth quarter of 2023 in connection with the formation of the OneSubsea joint venture. The acquired business generated revenue of $532 million during the third quarter of 2024. Excluding the impact of this acquisition, SLB’s global third-quarter 2024 revenue increased 4% year on year; international third-quarter 2024 revenue increased 4% year on year; and Production Systems third-quarter 2024 revenue increased 9% year on year.
| * | These are そして、そのような消極的なコメント-投資家たちのネガティブな反応を考慮すると、今日シャッターストックを売却するべきかどうかの問題が生じます。そして答えは：売却することはおすすめしません。 財務指標。 「部門」と「補足情報」のセクションを参照して詳細をご覧ください。 |
n/m = 意味がない
SLbは慎重なマクロ環境にもかかわらず、マージンと収益を拡大
「SLbの最高経営責任者オリヴィエ・ル・パッシュは、調整後のEBITDAマージンの目標である25%以上に合致する総合的な三半期の強い結果を達成し、利益成長とマージンの拡大を達成しました。」。これらの結果は、コスト最適化に対する取り組み、当社のデジタル製品やソリューションの大規模採用、および深海での長期プロジェクトの貢献によって達成されました。
「この業績は、短サイクルの活動成長が鈍化し、一部の国際生産者が原油価格の低下やグローバルな供給過剰によって引き起こされた慎重な支出を行いながらも達成されました。また、米国の陸上活動は控えめなままでした。売上高は中東およびアジア、沖合北アメリカで成長しましたが、ラテンアメリカでの減少に耐え、ヨーロッパ＆アフリカの売上高は横ばいで推移しました」とル・パッシュ氏は述べました。
顧客がクラウドコンピューティングと自動化に注力するにつれて、デジタルが業績をリードしています
「業界全体でデジタルテクノロジーの変革的影響が引き続き見られるにつれて、デジタルとインテグレーションは 4% 連続で増加しました 収入。これは、当社のデジタル事業が推進したもので、前四半期比で7％、前年比で25％成長しました。デジタル＆インテグレーションの税引前セグメントの営業利益率は、主にデジタル事業に牽引され、456ベーシスポイント（bps）前四半期比で拡大しました。
「私たちの顧客は、計画サイクルタイムの短縮、自動化の促進、効率の向上のためにデジタルテクノロジーを採用する傾向が強まっています。私たちのクラウドベースです プラットフォームサービスは、エネルギーバリューチェーン全体でデータとAIを解き放ち、データ主導の意思決定と業務の合理化を可能にする不可欠なツールとして登場しています。この分野での私たちのリーダーシップは、私たちが歓迎した以上のことがあり、フルに発揮されました 9月に開催されるSLbデジタルフォーラムには、1,000人の顧客とパートナーが集まり、進歩を共有し、共に革新し、新しいデジタル機会を模索します。
「イベントでは、 NVIDIA、アマゾンウェブサービス、アラムコなどとのエキサイティングな新しいコラボレーションやパートナーシップを発表しました。さらに、Lumiを発売しました™ 統合されるデータとAIプラットフォーム エネルギーバリューチェーン全体のワークフローを備えた、ジェネレーティブAIを含む高度なAI機能。詳細については、このリリースの四半期ごとのハイライトをご覧ください。
「貯水池性能、井戸建設、生産システムからなる中核部門では、収益は基本的に前四半期比で横ばいでした。プロダクション システム収益は前四半期比で 3% 増加し、過去最高の四半期収益を記録しました。税引前セグメントの営業利益率は9四半期連続で前年同期比で拡大しました。貯水池パフォーマンスの収益は前四半期比で横ばいでしたが、ウェルコンストラクションは 掘削活動の減少により、収益は3％減少しました」とLe Peuch氏は言います。
強力なキャッシュフローにより、SLbは株主へのリターンを加速します
「全体として、第3四半期には、調整後EBITDAマージンが25.6％に達しました。 55ビット/秒 順次増加。からのキャッシュフロー 営業利益は24.5億ドル、フリーキャッシュフローは18億1000万ドルでした。さらに、自社株の買い戻しと配当を通じて9億ドル近くを株主に還元し、最初の9年間は株主にトータルリターンをもたらしました 年間の月数は23億8000万ドルになりました。
「堅調なキャッシュフローと、引き続き堅調なキャッシュフロー創出が見られるようになったことで、私たちはシェアを拡大しました。 現在の株価水準を利用した買戻しプログラム。私たちは今、今年初めに行った30億ドルの株主還元コミットメントを超えると予想しています。
「SLbチームの揺るぎない献身と卓越した実行力に感謝します。一貫してお客様に提供し、 株主」とル・プークは言いました。
国際、デジタル、およびコスト最適化が焦点となる
「一部の顧客は、商品価格の低下を受けて、短期の資本支出および自由裁量支出に慎重なアプローチを採用していますが、ほとんどの プロジェクトは計画通りに進行しています。最近の地政学的事象は、長期のエネルギーセキュリティの重要性と潜在的な供給の中断を減らすことをさらに強調しました。」
「SLbは、国際的なディープウォーターおよびガス市場での長期プロジェクトへの独自の露出を活用することにより、変化する市場環境を航行するために十分に位置しています。さらに、SLBのデジタルリーダーシップと新興市場での存在が拡大しています。 低炭素 市場」
「ここ数か月のマクロ環境の影響で、上流投資の成長率は緩やかになっていますが、将来数年間は持続的な上流投資水準を予想しています。この文脈では、国際的リーダーシップ、頑丈なデジタルセールス、および継続的なコスト 最適化イニシアチブのサポートにより、強力なキャッシュフローと全年調整後EBITDAマージンが25%以上で提供されることを期待しています。
「全体的に、当社のビジネスは、株主にさらなるマージン拡大と増加したリターンを提供するために十分なポジションにあります」とLe Peuch氏は述べた。
その他
四半期の間に、SLbは普通株式を合計購入価格501億ドルで11.3百万株買い戻しました。年初からの9か月で、SLbは普通株式を合計購入価格12.4億ドルで26.6百万株買い戻しました。
2024年10月17日、SLbはカナダ・アルバータ州に位置するパリサーブロックでの稼働権益を売却することに確定契約を締結しました。この取引は規制当局の承認およびその他の通常のクロージング条件を待つ必要があり、2024年第4四半期終盤に完了する予定です。
2024年10月17日、SLbの取締役会は1株当たり0.275ドルの四半期現金配当を承認し、2025年1月9日に株主名簿記載日2024年12月4日の株主に支払われる予定です。
地域別の第3四半期の収益
| (miに記載)lライオン) | ||||||||||||||||||||
| 3 か月が終了 | 変更 | |||||||||||||||||||
| 9月30日 2024 |
六月30日、 2024 |
9月30日 2023 |
シーケンシャル | 前年比 | ||||||||||||||||
| 北アメリカ |
$ | 1,687 | $ | 1,644 | $ | 1,643 | 3 | % | 3 | % | ||||||||||
| ラテンアメリカ |
1,689 | 1,742 | 1,681 | -3 | % | — | ||||||||||||||
| ヨーロッパとアフリカ* |
2,434 | 2,442 | 2,091 | — | 16 | % | ||||||||||||||
| 中東 & アジア |
3,302 | 3,268 | 2,842 | 1 | % | 16 | % | |||||||||||||
| エリミネーションとその他 |
47 | 43 | 53 | n/m | n/m | |||||||||||||||
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| $ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10 | % | ||||||||||||
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| 国際 |
$ | 7,425 | $ | 7,452 | $ | 6,614 | — | 12 | % | |||||||||||
| 北アメリカ |
$ | 1,687 | $ | 1,644 | $ | 1,643 | 3 | % | 3 | % | ||||||||||
SLBは、OneSubsea合弁会社の設立に関連して、2023年の第4四半期にAkerの海底事業を買収しました。 買収した事業は、2024年の第3四半期に5億3,200万ドルの収益を生み出しました。この買収の影響を除くと、SLBの2024年第3四半期のグローバル収益は前年同期比で4％増加し、2024年第3四半期の国際収益は前年同期比で4％増加しました 前年比で 4% 増加しました。
| * | ロシアとカスピ海地域を含みます |
| n/m | = 意味がありません |
国際
の収益 ラテンアメリカ 16億9000万ドルの ブラジルでの生産システムの売上の減少と、メキシコとガイアナでの掘削活動の減少を反映して、前四半期比で 3% 減少しました。アルゼンチンでの好調な活動とブラジルでの生産システムの売上の増加により、収益は前年比で横ばいでした メキシコでの掘削活動の減少によって相殺されました。
ヨーロッパとアフリカ 24億4,000万ドルの収益は、売上が増加したため、前四半期比で横ばいでした 北アフリカの人工リフトは、スカンジナビアでの海底生産システムの売上の減少と、スカンジナビアでの掘削、介入、刺激活動の減少によって相殺されました サハラ以南の アフリカ。前年比で、 主にスカンジナビアで買収したAker海底事業と、北アフリカでの掘削、介入、刺激活動の増加により、収益は16％増加しました。
の収益 中東とアジア オーストラリアでの生産システムの売上が好調で、33億ドルが前四半期比で 1% 増加しました。 サウジアラビア、イラク、クウェート、カタール、東アジアとアラブ首長国連邦での掘削量の増加が、エジプトとインドの業績不振を相殺しました。刺激、介入、評価活動が活発になったため、収益は前年比で16％増加しました また、サウジアラビア、アラブ首長国連邦、イラク、クウェート、カタール、オマーンでの生産システムの販売も増加しました。東アジアとインドネシアでの掘削の増加と、買収したオーストラリアのAker海底事業も貢献しました 前年比 成長。
北米
北米 アメリカ 売上高は前期比3%増の16.9億ドルで、米国メキシコ湾での生産システムの売り上げが好調だったことやカナダ内陸部での掘削活動の増加などが寄与しましたが、米国内での掘削収入が減少しました。売上高は前年比3%増の結果となり、海底生産システムや米国メキシコ湾での評価および刺激活動の増加が寄与しましたが、米国内での掘削収入が減少しました。
事業部別第三四半期の結果
デジタル＆統合
| （百万に表記） | ||||||||||||||||||||
| 終了した三ヶ月間 | 変化 | |||||||||||||||||||
| 9月30日, 2024 |
6月30日, 2024 |
9月30日, 2023 |
シーケンシャル |
前年比 | ||||||||||||||||
| 売上高 |
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| 国際 |
$ | 830 | $ | 757 | $ | 737 | 10% | 13% | ||||||||||||
| 北米 |
258 | 291 | 242 | -11% | 6% | |||||||||||||||
| 他 |
— | 2 | 3 | n/m | n/m | |||||||||||||||
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| $ | 1,088 | $ | 1,050 | $ | 982 | 4% | 11% | |||||||||||||
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| 税引前営業利益 |
$ | 386 | $ | 325 | $ | 314 | 19% | 23% | ||||||||||||
| 税引前営業利益率 |
35.5 | % | 31.0 | % | 32.0 | % | 456 ベーシス ポイント | 353 ベーシス ポイント | ||||||||||||
n/m = 意味がない
デジタル＆統合の売上高は10.9億ドルであり、デジタル売上高の増加により、前期比4%増加しました。一方、Asset Performance Solutions（APS）の売上高は横ばいでした。デジタル売上高はクラウド、人工知能、エッジテクノロジープラットフォームの国際的な採用拡大により、前期比7%増加しました。対前年比で、売上高は11%増加し、デジタルは25%成長し、一方APSの売上高は3%減少しました。
デジタル＆統合の税引前営業利益率は36％で、デジタルの収益性の向上に伴い、デジタル製品とソリューションの採用拡大とコスト効率の改善により、前期比456ベーシスポイント拡大しました。対前年比で、税引前営業利益率は353ベーシスポイント拡大し、デジタルの収益性が向上した一方で、APSの収益性は高い償却費や低いガス価格の影響により部分的に相殺され、低下しました。
貯水池のパフォーマンス
| （百万に表記） | ||||||||||||||||||||
| 終了した三ヶ月間 | 変化 | |||||||||||||||||||
| 9月30日, 2024 |
6月30日, 2024 |
9月30日, 2023 |
シーケンシャル | 前年比 | ||||||||||||||||
| 売上高 |
||||||||||||||||||||
| 国際 |
$ | 1,676 | $ | 1,684 | $ | 1,554 | — | 8% | ||||||||||||
| 北米 |
145 | 134 | 125 | 8% | 16% | |||||||||||||||
| 他 |
2 | 1 | 1 | n/m | n/m | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 1,823 | $ | 1,819 | $ | 1,680 | — | 9% | |||||||||||||
|
|
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|
|
|
|
|
|
|
|
|||||||||||
| 税引前営業利益 |
$ | 367 | $ | 376 | $ | 344 | -2% | 7% | ||||||||||||
| 税引き前営業利益率 |
20.1 | % | 20.6 | % | 20.5 | % | -53 ベーシス ポイント | -37 ベーシス ポイント | ||||||||||||
n/m = 意味がない
リザーバーパフォーマンスの売上高は18.2億ドルで、高い介入活動によるオフセットが低い評価活動と平坦化し、刺激売上高も平坦でした。地理的には、売上高はヨーロッパおよびアフリカと中東アジアでの減少に部分的に相殺されつつも、オフショアの北米やラテンアメリカで成長しました。売上高は前年比9%増加し、刺激活動と介入活動の増加による一方で、低い評価売上高に部分的に相殺されました。
リザーバーパフォーマンスの税引き前営業利益率が20%で、評価の利益率が低下し、介入の利益率が改善されたため、前期比53 bps縮小しました。前年比では、不利な技術ミックスにより税引き前営業利益率が37 bps縮小しました。
ウェル建設
| （百万に表記） |
||||||||||||||||||||
| 終了した三ヶ月間 | 変化 | |||||||||||||||||||
| 9月30日, 2024 |
6月30日, 2024 |
9月30日, 2023 |
シーケンシャル | 前年比 | ||||||||||||||||
| 売上高 |
||||||||||||||||||||
| 国際 |
$ | 2,675 | $ | 2,768 | $ | 2,707 | -3% | -1% | ||||||||||||
| 北米 |
581 | 592 | 663 | -2% | -12% | |||||||||||||||
| 他 |
56 | 51 | 60 | n/m | n/m | |||||||||||||||
|
|
|
|
|
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|
|||||||||||
| $ | 3,312 | $ | 3,411 | $ | 3,430 | -3% | -3% | |||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
| 税引き前営業利益 |
$ | 714 | $ | 742 | $ | 759 | -4% | -6% | ||||||||||||
| 税引き前営業利益率 |
21.5 | % | 21.7 | % | 22.1 | % | -19 ベーシスポイント | -58 ベーシスポイント | ||||||||||||
n/m = 意味がない
建設の売上高は31億ドルで、前年比、前年比ともに3%減少しました。これは、測定および流体の売上高が低下したためです。これはラテンアメリカ、米国内陸部、サウジアラビアでのドリルの活動が低下したことによるものでした。
Well Construction pretax operating margin of 22% declined 19 bps sequentially and 58 bps year on year due to reduced activity both in North America and internationally.
Production Systems
| (Stated in millions) | ||||||||||||||||||||
| Three Months Ended | Change | |||||||||||||||||||
| Sept. 30, 2024 |
Jun. 30, 2024 |
Sept. 30, 2023 |
Sequential | Year-on-year | ||||||||||||||||
| Revenue |
||||||||||||||||||||
| International |
$ | 2,373 | $ | 2,378 | $ | 1,740 | — | 36% | ||||||||||||
| North America |
723 | 640 | 626 | 13% | 15% | |||||||||||||||
| Other |
7 | 7 | 1 | n/m | n/m | |||||||||||||||
|
|
|
|
|
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|
|
|
|||||||||||
| $ | 3,103 | $ | 3,025 | $ | 2,367 | 3% | 31% | |||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||
| Pretax operating income |
$ | 519 | $ | 473 | $ | 319 | 10% | 63% | ||||||||||||
| Pretax operating margin |
16.7 | % | 15.6 | % | 13.5 | % | 110 bps | 325 bps | ||||||||||||
SLB acquired the Aker subsea business during the fourth quarter of 2023 in connection with the formation of the OneSubsea joint venture. The acquired business generated revenue of $532 million during the third quarter of 2024. Excluding the impact of this acquisition, Production Systems third-quarter 2024 revenue increased 9% year on year.
n/m = not meaningful
Production Systems revenue of $3.10 billion increased 3% sequentially with growth led by higher sales of surface production systems, completions, and artificial lift, partially offset by reduced sales of subsea and midstream production systems. Year on year, revenue grew 31%, mainly due to the acquisition of the Aker subsea business and strong international sales across the portfolio.
Production Systems pretax operating margin of 17% expanded 110 bps sequentially with improved profitability in surface production systems, completions, and artificial lift. Year on year, pretax operating margin expanded 325 bps due to improved profitability in surface production systems, artificial lift, and valves.
Quarterly Highlights
CORE
Contract Awards
SLB continues to win new contract awards that align with SLB’s strengths in the Core, particularly in the international and offshore basins. Notable highlights include the following:
| • | In the UAE, SLB, ADNOC Drilling Company, and Patterson-UTI announced the formation of the Turnwell Industries LLC OPC joint venture (JV). The JV will focus on the acceleration of UAE’s unconventional oil and gas program, with an initial 144 wells scheduled for completion by the end of 2025. SLB will provide integrated drilling, stimulation, and completion services, as well as project management, digital capabilities, and subsurface support. |
| • | In Kuwait, Kuwait Oil Company (KOC) has awarded SLB a lump sum turnkey (LSTK) drilling contract to drill and deliver wells in south and east Kuwait. SLB will manage the planning, construction, and drilling of 141 wells over a period of three years. This LSTK contract will enable improved efficiency and faster deployment of technologies. |
| • | In Oman, Shell Development Oman LLC has awarded SLB a two-year integrated well construction contract covering up to 23 wells in Block 10 and Block 11 with the potential to extend an additional three years. SLB will provide bits and drilling tools, cementing, drilling fluids, drilling services, and mud logging. |
| • | In the North Sea, bp awarded SLB OneSubsea™ and Subsea7 an integrated engineering, procurement, construction, and installation contract for the Murlach development (formerly Skua Field), 240 kilometers east of Aberdeen in the U.K. North Sea. The Murlach project will include the first-ever implementation of SLB OneSubsea standard, configurable vertical monobore tree systems in the U.K. North Sea, which will be deployed by Subsea7 via vessel to reduce rig days. |
| • | In Brazil, Petrobras awarded SLB OneSubsea a major contract for two ultradeepwater projects. The contract covers standardized presalt subsea production systems and services to develop the Atapu and Sepia oil fields in the Santos Basin. SLB OneSubsea will supply Petrobras-standard configured presalt vertical trees, subsea distribution units, control systems, and pipeline systems, along with related installation, commissioning, and life-of-field services. These projects will add to Petrobras’ presalt investments and enable Petrobras to add two new FPSO platforms, each with a daily capacity of 225,000 barrels of oil and 10 million cubic meters of gas. |
| • | Also in Brazil, Equinor awarded SLB a contract for the deepwater development of the Raia Project with first oil expected in 2028. SLB will provide directional drilling services, fluids, cementing, and logging and completion tools for six wells. The area contains a recoverable volume of natural gas and oil condensate of more than 1 billion barrels of oil equivalent. |
| • | Also in Brazil, Petrobras awarded SLB a 10-year contract for the delivery of encapsulated submersible pump services for up to 200 systems in Bahia state. This performance-based contract underscores the reliability and excellence of SLB equipment and services. |
| • | Offshore Norway, Equinor awarded SLB a multiyear integrated drilling and reservoir evaluation contract spanning a wide range of operations. This includes integrated drilling and wireline services for an exploration drilling campaign on the Norwegian continental shelf; IriSphere™ look-ahead-while-drilling service for Stage II of the Troll Phase 3 project; wireline services for an exploration drilling campaign in the Barents Sea; and drilling and wireline services in the Irpa subsea development to create a tieback that extends the lifespan of Aasta Hansteen Field. Work for this integrated-domain contract will begin in 2025. |
| • | In Namibia, an operator awarded SLB a three-year integrated contract for well construction and reservoir characterization services. This contract includes the utilization of the SLB Ora™ intelligent wireline formation testing platform. |
Technology and Innovation
Notable technology introductions and deployment in the quarter include the following:
| • | In the U.S., ExxonMobil and SLB collaborated on the longest well section in the Permian Basin, delivering the first-ever four-mile well in the Second Bone Spring formation. Utilizing SLB’s PowerDrive Orbit G2™ rotary steerable system with a ruggedized pad design, the single-run lateral was achieved by steering at a complex high angle in harsh downhole conditions. This approach also led to a significant reduction in drilling time, releasing the well in 16.4 days. |
| • | In Kuwait, SLB and KOC implemented an advanced well intervention workflow, integrating distributed temperature sensing, 3D far-field sonic service, and production logging tools. Deploying ACTive™ real-time downhole coiled tubing services, SLB provided detailed reservoir insights and enabled the precise deployment of engineered stimulation fluids. This intervention identified a critical thief zone, mapped the surrounding microfractures, and improved water intake patterns, ultimately resulting in an increase of 200 barrels of oil per day from four nearby wells. One previously shut-in well achieved 1,800 barrels of oil per day postintervention. Based on this success, KOC has approved the expansion of this workflow across the Sabriyah Mauddud flank, with four additional wells slated for similar interventions. |
| • | In Angola, SLB and TotalEnergies deployed the first offshore application of OneSTEP EF™ efficient, low-risk sandstone stimulation solution in the Canela Field. The candidate well, situated in asandstone reservoir, faced multiple damage mechanisms, including mudcake, lost circulation material, organic deposits, silt, clay, and fines migration. After deploying the solution, the well’s flow rate increased by 250% and has become TotalEnergies’ top producing well in Angola. |
Decarbonization
SLB is focused on developing and implementing technologies that can reduce emissions and environmental impact with practical, quantifiably proven solutions. Highlights include the following:
| • | In the U.S., SLB OneSubsea has signed a memorandum of understanding with C-Power to explore the use of converted energy from ocean waves as a lower-cost, lower-carbon power source for subsea energy applications. The joint industry project, cosponsored by the U.S. Department of Energy, will be conducted by SLB OneSubsea in collaboration with its Integration Alliance partner, Subsea7. |
| • | In Norway, SLB and Equinor successfully deployed the world’s first offshore electric-powered light-string coiled tubing package. This innovative package was designed together with Equinor to bridge the gap between conventional offshore wireline and coiled tubing capabilities. When compared with the traditional coiled tubing package, the light-string package requires 48% less rig floor footprint, 33% fewer personnel on board, and up to 75% less rig-up and rig-down time. In its first job, the light-string coiled tubing package performed a downhole cleanout operation 75% faster than would have been possible with conventional wireline. |
DIGITAL
SLB is deploying digital technology at scale, partnering with customers to migrate their technology and workflows into the cloud, to embrace new AI-enabled capabilities, and to leverage insights to elevate their performance. Notable highlights include the following:
| • | SLB launched the Lumi data and AI platform, which integrates advanced AI capabilities—including generative AI—with workflows across the energy value chain. The open, secure, and modular platform unlocks access to high-quality data across subsurface, surface, planning, and operations, increasing cross-domain collaboration and releasing new intelligence and insights to improve the quality and speed of decision-making at the enterprise level. |
| • | SLB and NVIDIA announced that they will build on their long-standing collaboration to develop generative AI solutions for the energy industry. Working together, the companies will build and optimize models to the specific needs and requirements of the data-intensive energy industry, including subsurface exploration, production operations, and data management. The collaboration accelerates the development and deployment of industry-specific generative AI models across SLB’s global platforms, including its Delfi™ digital platform and Lumi data and AI platform. |
| • | SLB and Amazon Web Services (AWS) announced an extended partnership to expand access to applications from the Delfi digital platform. Energy Data Insights from AWS will also offer compatibility with SLB’s new Lumi data and AI platform. SLB and Amazon have also entered into a multiyear strategic framework agreement to explore the deployment of low-carbon technologies. |
| • | SLB and Palo Alto Networks announced an expanded collaboration to strengthen cybersecurity for the energy sector. The companies will combine SLB’s cloud and edge technologies and domain expertise in the energy industry with Palo Alto Networks’ cross-industry, platform-based cybersecurity solutions. This will not only help SLB remain on the forefront with its own security infrastructure but will also help drive future enhanced solutions to address evolving cyber threats as the industry’s adoption of digital solutions and artificial intelligence accelerates. |
| • | SLB and Aramco have signed an agreement with the aim of codeveloping, commercializing, and utilizing digital solutions to help mitigate greenhouse gas emissions in industrial sectors. The agreement establishes |
| a framework for the development of several digital solutions on SLB’s digital sustainability platform that will enable industrial companies to accelerate their progress toward net zero by more easily measuring, reporting, and verifying their emissions. |
| • | In Australia, Woodside Energy has awarded SLB a three-year digital frame agreement, which incorporates global subsurface data management, software provisioning, Delfi on-demand reservoir simulation, and onsite support services. SLB will help Woodside Energy to standardize an enterprise-scale data management solution, while also providing a full suite of software products and compute scalability via the Delfi platform for reservoir simulations. |
NEW ENERGY
SLB continues to participate in the global transition to low-carbon energy systems through innovative technology and strategic partnerships, including the following:
| • | In Nevada, SLB achieved breakthrough results in sustainable lithium production. Using a proprietary integrated solution that combines SLB’s subsurface expertise with surface engineering of advanced technologies that include direct lithium extraction (DLE), SLB was able to produce lithium at a rate 500 times faster than conventional methods while using only 10% of the land. The plant reached a verified recovery rate of 96% lithium from brine while using significantly less water, energy, and fewer chemical reagents in comparison with other lithium mining techniques. |
| • | In the U.S., SLB Capturi™, the newly formed joint venture between SLB and Aker Carbon Capture, was awarded a contract by CO280 Solutions for front end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the U.S. Gulf Coast. The project, which aims to remove 800,000 metric tons of carbon emissions annually, will also deliver permanent, verifiable, and affordable carbon dioxide removals (CDRs). This follows recent announcements by SLB Capturi and CO280 on their collaboration to develop large-scale CDR projects in the U.S. and Canada pulp and paper industries and their collaboration with Microsoft® to scale the full value chain of carbon removal. |
| • | Also in the U.S., SLB Capturi has secured funding from the U.S. Department of Energy’s Office of Clean Energy Demonstrations for the first phase of two carbon capture projects. These projects, which commenced in August 2024 with a FEED study, involve deploying carbon capture systems at Basin Electric’s Dry Fork Station in Wyoming and International Paper’s Vicksburg Containerboard Mill in Mississippi. The projects are undertaken in partnership with TDA Research for the Wyoming project and with RTI International, International Paper, and Amazon, for the Mississippi project. The combined aim of these projects is to capture 278,000 metric tons of CO2 annually, demonstrating the potential of early-stage carbon capture technologies for achieving significant emissions reductions. |
| • | In Norway, SLB launched a well integrity assessment solution that simplifies carbon storage site selection and evaluation by quantifying well integrity risks in mature or retired oil and gas fields. SLB’s solution incorporates advanced failure mode, effects, and criticality analysis to assess potential leakage pathways, well barriers, failure mechanisms, and resulting consequences; helping customers understand the risks associated with each well, inform remediation strategies, and, ultimately, estimate project viability. |
FINANCIAL TABLES
Condensed Consolidated Statement of Income
| (Stated in millions, except per share amounts) | ||||||||||||||||
| Third Quarter | Nine Months | |||||||||||||||
| Periods Ended September 30, |
2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue |
$ | 9,159 | $ | 8,310 | $ | 27,005 | $ | 24,145 | ||||||||
| Interest & other income (1) |
96 | 73 | 265 | 247 | ||||||||||||
| Expenses |
||||||||||||||||
| Cost of revenue (1) |
7,237 | 6,592 | 21,506 | 19,378 | ||||||||||||
| Research & engineering |
187 | 186 | 557 | 524 | ||||||||||||
| General & administrative |
90 | 81 | 305 | 268 | ||||||||||||
| Merger & integration (1) |
33 | — | 60 | — | ||||||||||||
| Restructuring (1) |
65 | — | 176 | — | ||||||||||||
| Interest |
136 | 129 | 381 | 373 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before taxes (1) |
$ | 1,507 | $ | 1,395 | $ | 4,285 | $ | 3,849 | ||||||||
| Tax expense (1) |
289 | 259 | 824 | 722 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (1) |
$ | 1,218 | $ | 1,136 | $ | 3,461 | $ | 3,127 | ||||||||
| Net income attributable to noncontrolling interests (1) |
32 | 13 | 95 | 36 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to SLB (1) |
$ | 1,186 | $ | 1,123 | $ | 3,366 | $ | 3,091 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted earnings per share of SLB (1) |
$ | 0.83 | $ | 0.78 | $ | 2.34 | $ | 2.14 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Average shares outstanding |
1,417 | 1,424 | 1,425 | 1,424 | ||||||||||||
| Average shares outstanding assuming dilution |
1,432 | 1,442 | 1,441 | 1,442 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Depreciation & amortization included in expenses (2) |
$ | 640 | $ | 579 | $ | 1,871 | $ | 1,703 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | See section entitled “Charges & Credits” for details. |
| (2) | Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments. |
Condensed Consolidated Balance Sheet
| (Stated in millions) | ||||||||
| Assets |
Sept. 30, 2024 |
Dec. 31, 2023 |
||||||
| Current Assets |
||||||||
| Cash and short-term investments |
$ | 4,462 | $ | 3,989 | ||||
| Receivables |
8,260 | 7,812 | ||||||
| Inventories |
4,573 | 4,387 | ||||||
| Other current assets |
1,506 | 1,530 | ||||||
|
|
|
|
|
|||||
| 18,801 | 17,718 | |||||||
| Investment in affiliated companies |
1,744 | 1,624 | ||||||
| Fixed assets |
7,360 | 7,240 | ||||||
| Goodwill |
14,559 | 14,084 | ||||||
| Intangible assets |
3,122 | 3,239 | ||||||
| Other assets |
4,189 | 4,052 | ||||||
|
|
|
|
|
|||||
| $ | 49,775 | $ | 47,957 | |||||
|
|
|
|
|
|||||
| Liabilities and Equity |
||||||||
| Current Liabilities |
||||||||
| Accounts payable and accrued liabilities |
$ | 10,346 | $ | 10,904 | ||||
| Estimated liability for taxes on income |
888 | 994 | ||||||
| Short-term borrowings and current portion of long-term debt |
1,059 | 1,123 | ||||||
| Dividends payable |
406 | 374 | ||||||
|
|
|
|
|
|||||
| 12,699 | 13,395 | |||||||
| Long-term debt |
11,864 | 10,842 | ||||||
| Other liabilities |
2,484 | 2,361 | ||||||
|
|
|
|
|
|||||
| 27,047 | 26,598 | |||||||
| Equity |
22,728 | 21,359 | ||||||
|
|
|
|
|
|||||
| $ | 49,775 | $ | 47,957 | |||||
|
|
|
|
|
|||||
Liquidity
| (Stated in millions) |
||||||||||||||||
| Components of Liquidity |
Sept. 30, 2024 |
Jun. 30, 2024 |
Sept. 30, 2023 |
Dec. 31, 2023 |
||||||||||||
| Cash and short-term investments |
$ | 4,462 | $ | 4,003 | $ | 3,735 | $ | 3,989 | ||||||||
| Short-term borrowings and current portion of long-term debt |
(1,059 | ) | (1,033 | ) | (1,998 | ) | (1,123 | ) | ||||||||
| Long-term debt |
(11,864 | ) | (12,156 | ) | (11,147 | ) | (10,842 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Debt(1) |
$ | (8,461 | ) | $ | (9,186 | ) | $ | (9,410 | ) | $ | (7,976 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
Details of changes in liquidity follow:
| Periods Ended September 30, |
Nine Months 2024 |
Third Quarter 2024 |
Nine Months 2023 |
|||||||||
| Net income |
$ | 3,461 | $ | 1,218 | $ | 3,127 | ||||||
| Charges and credits, net of tax (2) |
231 | 92 | (28 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| 3,692 | 1,310 | 3,099 | ||||||||||
| Depreciation and amortization (3) |
1,871 | 640 | 1,703 | |||||||||
| Stock-based compensation expense |
244 | 71 | 218 | |||||||||
| Change in working capital |
(1,731 | ) | 313 | (1,353 | ) | |||||||
| Other |
136 | 115 | (52 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Cash flow from operations |
4,212 | 2,449 | 3,615 | |||||||||
|
|
|
|
|
|
|
|||||||
| Capital expenditures |
(1,322 | ) | (460 | ) | (1,345 | ) | ||||||
| APS investments |
(390 | ) | (134 | ) | (391 | ) | ||||||
| Exploration data capitalized |
(141 | ) | (50 | ) | (121 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Free cash flow (4) |
2,359 | 1,805 | 1,758 | |||||||||
|
|
|
|
|
|
|
|||||||
| Dividends paid |
(1,144 | ) | (393 | ) | (961 | ) | ||||||
| Stock repurchase program |
(1,236 | ) | (501 | ) | (594 | ) | ||||||
| Proceeds from employee stock plans |
244 | 124 | 276 | |||||||||
| Business acquisitions and investments, net of cash acquired |
(552 | ) | (47 | ) | (280 | ) | ||||||
| Purchases of Blue Chip Swap securities |
(136 | ) | (60 | ) | (169 | ) | ||||||
| Proceeds from sale of Blue Chip Swap securities |
92 | 41 | 91 | |||||||||
| Proceeds from sale of Liberty shares |
— | — | 137 | |||||||||
| Taxes paid on net settled stock-based compensation awards |
(86 | ) | (8 | ) | (162 | ) | ||||||
| Other |
27 | (12 | ) | (194 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| (Increase) decrease in net debt before impact of changes in foreign exchange rates |
(432 | ) | 949 | (98 | ) | |||||||
| Impact of changes in foreign exchange rates on net debt |
(53 | ) | (224 | ) | 20 | |||||||
|
|
|
|
|
|
|
|||||||
| (Increase) decrease in Net Debt |
(485 | ) | 725 | (78 | ) | |||||||
| Net Debt, beginning of period |
(7,976 | ) | (9,186 | ) | (9,332 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net Debt, end of period |
$ | (8,461 | ) | $ | (8,461 | ) | $ | (9,410 | ) | |||
|
|
|
|
|
|
|
|||||||
| (1) | “Net Debt” represents gross debt less cash and short-term investments. Management believes that Net Debt provides useful information to investors and management regarding the level of SLB’s indebtedness by reflecting cash and investments that could be used to repay debt. Net Debt is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, total debt. |
| (2) | See section entitled “Charges & Credits” for details. |
| (3) | Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments. |
| (4) | “Free cash flow” represents cash flow from operations less capital expenditures, APS investments, and exploration data costs capitalized. Management believes that free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of SLB’s ability to generate cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. Free cash flow does not represent the residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations. |
Charges & Credits
In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), this third-quarter 2024 earnings release also includes non-GAAP financial measures (as defined under the SEC’s Regulation G). In addition to the non-GAAP financial measures discussed under “Liquidity”, SLB net income, excluding charges & credits, as well as measures derived from it (including diluted EPS, excluding charges & credits; effective tax rate, excluding charges & credits; adjusted EBITDA and adjusted EBITDA margin) are non-GAAP financial measures. Management believes that the exclusion of charges & credits from these financial measures provide useful perspective on SLB’s underlying business results and operating trends, and a means to evaluate SLB’s operations period over period. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of certain of these non-GAAP measures to the comparable GAAP measures. For a reconciliation of adjusted EBITDA to the comparable GAAP measure, please refer to the section titled “Supplementary Information” (Question 9).
| (Stated in millions, except per share amounts) | ||||||||||||||||||||
| Third Quarter 2024 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 1,507 | $ | 289 | $ | 32 | $ | 1,186 | $ | 0.83 | ||||||||||
| Restructuring (1) |
65 | 10 | — | 55 | 0.04 | |||||||||||||||
| Merger & integration (2) |
47 | 10 | 7 | 30 | 0.02 | |||||||||||||||
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| SLB net income, excluding charges & credits |
$ | 1,619 | $ | 309 | $ | 39 | $ | 1,271 | $ | 0.89 | ||||||||||
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| Second Quarter 2024 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 1,421 | $ | 276 | $ | 33 | $ | 1,112 | $ | 0.77 | ||||||||||
| Restructuring (1) |
111 | 17 | — | 94 | 0.07 | |||||||||||||||
| Merger & integration (2) |
31 | 5 | 8 | 18 | 0.01 | |||||||||||||||
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| SLB net income, excluding charges & credits |
$ | 1,563 | $ | 298 | $ | 41 | $ | 1,224 | $ | 0.85 | ||||||||||
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| Nine Months 2024 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 4,285 | $ | 824 | $ | 95 | $ | 3,366 | $ | 2.34 | ||||||||||
| Restructuring (1) |
176 | 27 | — | 149 | 0.10 | |||||||||||||||
| Merger & integration (3) |
103 | 21 | 20 | 62 | 0.04 | |||||||||||||||
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| SLB net income, excluding charges & credits |
$ | 4,564 | $ | 872 | $ | 115 | $ | 3,577 | $ | 2.48 | ||||||||||
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| Nine Months 2023 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 3,849 | $ | 722 | $ | 36 | $ | 3,091 | $ | 2.14 | ||||||||||
| Gain on sale of Liberty shares (4) |
(36 | ) | (8 | ) | — | (28 | ) | (0.02 | ) | |||||||||||
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| SLB net income, excluding charges & credits |
$ | 3,813 | $ | 714 | $ | 36 | $ | 3,063 | $ | 2.12 | ||||||||||
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| (1) | Classified in Restructuring in the Condensed Consolidated Statement of Income. |
| (2) | During the third quarter of 2024, $14 million of these charges were classified in Cost of revenue in the Condensed Consolidation Statement of Income with the remaining $33 million classified in Merger & integration. During the second quarter of 2024, $15 million of these charges were classified in Cost of revenue with the remaining $16 million classified in Merger & integration. |
| (3) | During the nine months of 2024, $43 million of these charges were classified in Cost of Revenue in the Condensed Consolidation Statement of Income with the remaining $60 million classified in Merger & integration. |
| (4) | Classified in Interest & other income in the Condensed Consolidated Statement of Income. |
There were no charges or credits during the third quarter of 2023.
Divisions
| (Stated in millions) | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| Sept. 30, 2024 | Jun. 30, 2024 | Sept. 30, 2023 | ||||||||||||||||||||||
| Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
|||||||||||||||||||
| Digital & Integration |
$ | 1,088 | $ | 386 | $ | 1,050 | $ | 325 | $ | 982 | $ | 314 | ||||||||||||
| Reservoir Performance |
1,823 | 367 | 1,819 | 376 | 1,680 | 344 | ||||||||||||||||||
| Well Construction |
3,312 | 714 | 3,411 | 742 | 3,430 | 759 | ||||||||||||||||||
| Production Systems |
3,103 | 519 | 3,025 | 473 | 2,367 | 319 | ||||||||||||||||||
| Eliminations & other |
(167 | ) | (84 | ) | (166 | ) | (62 | ) | (149 | ) | (53 | ) | ||||||||||||
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| Pretax segment operating income |
1,902 | 1,854 | 1,683 | |||||||||||||||||||||
| Corporate & other |
(187 | ) | (191 | ) | (182 | ) | ||||||||||||||||||
| Interest income(1) |
36 | 29 | 20 | |||||||||||||||||||||
| Interest expense(1) |
(132 | ) | (129 | ) | (126 | ) | ||||||||||||||||||
| Charges & credits(2) |
(112 | ) | (142 | ) | — | |||||||||||||||||||
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| $ | 9,159 | $ | 1,507 | $ | 9,139 | $ | 1,421 | $ | 8,310 | $ | 1,395 | |||||||||||||
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| (Stated in millions) | ||||||||||||||||
| Nine Months Ended | ||||||||||||||||
| Sept. 30, 2024 | Sept. 30, 2023 | |||||||||||||||
| Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
|||||||||||||
| Digital & Integration |
$ | 3,091 | $ | 965 | $ | 2,822 | $ | 901 | ||||||||
| Reservoir Performance |
5,369 | 1,082 | 4,826 | 892 | ||||||||||||
| Well Construction |
10,090 | 2,145 | 10,052 | 2,162 | ||||||||||||
| Production Systems |
8,946 | 1,392 | 6,888 | 802 | ||||||||||||
| Eliminations & other |
(491 | ) | (180 | ) | (443 | ) | (102 | ) | ||||||||
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| Pretax segment operating income |
5,404 | 4,655 | ||||||||||||||
| Corporate & other |
(568 | ) | (536 | ) | ||||||||||||
| Interest income(1) |
98 | 57 | ||||||||||||||
| Interest expense(1) |
(370 | ) | (363 | ) | ||||||||||||
| Charges & credits(2) |
(279 | ) | 36 | |||||||||||||
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| $ | 27,005 | $ | 4,285 | $ | 24,145 | $ | 3,849 | |||||||||
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| (1) | Excludes amounts which are included in the segments’ results. |
| (2) | See section entitled “Charges & Credits” for details. |
Supplementary Information
Frequently Asked Questions
| 1) | What is the capital investment guidance for the full-year 2024? |
Capital investment (consisting of capex, exploration data costs, and APS investments) for the full-year 2024 is still expected to be approximately $2.60 billion, which is the same level as full-year 2023.
| 2) | What were cash flow from operations and free cash flow for the third quarter of 2024? |
Cash flow from operations for the third quarter of 2024 was $2.45 billion and free cash flow was $1.81 billion.
| 3) | What was included in “Interest & other income” for the third quarter of 2024? |
“Interest & other income” for the third quarter of 2024 was $96 million. This consisted of interest income of $52 million and earnings of equity method investments of $44 million.
| 4) | How did interest income and interest expense change during the third quarter of 2024? |
Interest income of $52 million for the third quarter of 2024 increased $14 million sequentially. Interest expense of $136 million increased $4 million sequentially.
| 5) | What is the difference between SLB’s consolidated income before taxes and pretax segment operating income? |
The difference consists of corporate items, charges and credits, and interest income and interest expense not allocated to the segments, as well as stock-based compensation expense, amortization expense associated with certain intangible assets, certain centrally managed initiatives, and other nonoperating items.
| 6) | What was the effective tax rate (ETR) for the third quarter of 2024? |
The ETR for the third quarter of 2024, calculated in accordance with GAAP, was 19.2% as compared to 19.4% for the second quarter of 2024. Excluding charges and credits, the ETR for both the third quarter of 2024 and for the second quarter of 2024 was 19.1%.
| 7) | How many shares of common stock were outstanding as of September 30, 2024, and how did this change from the end of the previous quarter? |
There were 1.412 billion shares of common stock outstanding as of September 30, 2024, and 1.420 billion shares outstanding as of June 30, 2024.
| (Stated in millions) | ||||
| Shares outstanding at June 30, 2024 |
1,420 | |||
| Shares issued under employee stock purchase plan |
3 | |||
| Shares issued to optionees, less shares exchanged |
— | |||
| Vesting of restricted stock |
— | |||
| Stock repurchase program |
(11 | ) | ||
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| Shares outstanding at September 30, 2024 |
1,412 | |||
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| 8) | What was the weighted average number of shares outstanding during the third quarter of 2024 and second quarter of 2024? How does this reconcile to the average number of shares outstanding, assuming dilution, used in the calculation of diluted earnings per share? |
The weighted average number of shares outstanding was 1.417 billion during the third quarter of 2024 and 1.428 billion during the second quarter of 2024. The following is a reconciliation of the weighted average shares outstanding to the average number of shares outstanding, assuming dilution, used in the calculation of diluted earnings per share.
| (Stated in millions) | ||||||||
| Third Quarter 2024 |
Second Quarter 2024 |
|||||||
| Weighted average shares outstanding |
1,417 | 1,428 | ||||||
| Unvested restricted stock |
14 | 14 | ||||||
| Assumed exercise of stock options |
1 | 1 | ||||||
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| Average shares outstanding, assuming dilution |
1,432 | 1,443 | ||||||
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| 9) | What was SLB’s adjusted EBITDA in the third quarter of 2024, the second quarter of 2024, the third quarter of 2023, the first nine months of 2024, and the first nine months of 2023? What was SLB’s adjusted EBITDA margin for those periods? |
SLB’s adjusted EBITDA was $2.343 billion in the third quarter of 2024, $2.288 billion in the second quarter of 2024, and $2.081 billion in the third quarter of 2023. SLB’s adjusted EBITDA margin was 25.6% in the third quarter of 2024 and 25.0% in both the second quarter of 2024 and the third quarter of 2023.
| (Stated in millions) | ||||||||||||
| Third Quarter 2024 |
Second Quarter 2024 |
Third Quarter 2023 |
||||||||||
| Net income attributable to SLB |
$ | 1,186 | $ | 1,112 | $ | 1,123 | ||||||
| Net income attributable to noncontrolling interests |
32 | 33 | 13 | |||||||||
| Tax expense |
289 | 276 | 259 | |||||||||
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| Income before taxes |
$ | 1,507 | $ | 1,421 | $ | 1,395 | ||||||
| Charges & credits |
112 | 142 | — | |||||||||
| Depreciation and amortization |
640 | 631 | 579 | |||||||||
| Interest expense |
136 | 132 | 129 | |||||||||
| Interest income |
(52 | ) | (38 | ) | (22 | ) | ||||||
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| Adjusted EBITDA |
$ | 2,343 | $ | 2,288 | $ | 2,081 | ||||||
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| Revenue |
$ | 9,159 | $ | 9,139 | $ | 8,310 | ||||||
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| Adjusted EBITDA margin |
25.6 | % | 25.0 | % | 25.0 | % | ||||||
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SLB’s adjusted EBITDA was $6.687 billion for the nine months ended September 30, 2024, and $5.830 billion for the nine months ended September 30, 2023. SLB’s adjusted EBITDA margin was 24.8% for the nine months ended September 30, 2024, and 24.1% for the nine months ended September 30, 2023.
| (Stated in millions) | ||||||||||||
| Nine Months 2024 |
Nine Months 2023 |
Change | ||||||||||
| Net income attributable to SLB |
$ | 3,366 | $ | 3,091 | ||||||||
| Net income attributable to noncontrolling interests |
95 | 36 | ||||||||||
| Tax expense |
824 | 722 | ||||||||||
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| Income before taxes |
$ | 4,285 | $ | 3,849 | ||||||||
| Charges & credits |
279 | (36 | ) | |||||||||
| Depreciation and amortization |
1,871 | 1,703 | ||||||||||
| Interest expense |
381 | 373 | ||||||||||
| Interest income |
(129 | ) | (59 | ) | ||||||||
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| Adjusted EBITDA |
$ | 6,687 | $ | 5,830 | 15 | % | ||||||
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| Revenue |
$ | 27,005 | $ | 24,145 | 12 | % | ||||||
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| Adjusted EBITDA margin |
24.8 | % | 24.1 | % | 62 bps | |||||||
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Adjusted EBITDA represents income before taxes, excluding charges & credits, depreciation and amortization, interest expense, and interest income. Management believes that adjusted EBITDA is an important profitability measure for SLB and that it provides useful perspective on SLB’s underlying business results and operating trends, and a means to evaluate SLB’s operations period over period. Adjusted EBITDA is also used by management as a performance measure in determining certain incentive compensation. Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP.
| 10) | What were the components of depreciation and amortization expense for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023, the first nine months of 2024, and the first nine months of 2023? |
The components of depreciation and amortization expense for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023 were as follows:
| (Stated in millions) | ||||||||||||
| Third Quarter 2024 |
Second Quarter 2024 |
Third Quarter 2023 |
||||||||||
| Depreciation of fixed assets |
$ | 394 | $ | 384 | $ | 365 | ||||||
| Amortization of intangible assets |
87 | 82 | 78 | |||||||||
| Amortization of APS investments |
124 | 118 | 107 | |||||||||
| Amortization of exploration data costs capitalized |
35 | 47 | 29 | |||||||||
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| $ | 640 | $ | 631 | $ | 579 | |||||||
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The components of depreciation and amortization expense for the nine months ended September 30, 2024, and the nine months ended September 30, 2023, were as follows:
| (Stated in millions) | ||||||||
| Nine Months 2024 |
Nine Months 2023 |
|||||||
| Depreciation of fixed assets |
$ | 1,155 | $ | 1,065 | ||||
| Amortization of intangible assets |
250 | 231 | ||||||
| Amortization of APS investments |
355 | 299 | ||||||
| Amortization of exploration data costs capitalized |
111 | 108 | ||||||
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| $ | 1,871 | $ | 1,703 | |||||
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| 11) | What Divisions comprise SLB’s Core business and what were their revenue and pretax operating income for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023? |
SLB’s Core business comprises the Reservoir Performance, Well Construction, and Production Systems Divisions. SLB’s Core business revenue and pretax operating income for the third quarter of 2024, second quarter of 2024, and the third quarter of 2023 are calculated as follows:
| (Stated in millions) | ||||||||||||||||||||
| Three Months Ended | Change | |||||||||||||||||||
| Sept. 30, 2024 |
Jun. 30, 2024 |
Sept. 30, 2023 |
Sequential | Year-on-year | ||||||||||||||||
| Revenue |
||||||||||||||||||||
| Reservoir Performance |
$ | 1,823 | $ | 1,819 | $ | 1,680 | ||||||||||||||
| Well Construction |
3,312 | 3,411 | 3,430 | |||||||||||||||||
| Production Systems |
3,103 | 3,025 | 2,367 | |||||||||||||||||
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| $ | 8,238 | $ | 8,255 | $ | 7,477 | — | 10% | |||||||||||||
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| Pretax Operating Income |
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| Reservoir Performance |
$ | 367 | $ | 376 | $ | 344 | ||||||||||||||
| Well Construction |
714 | 742 | 759 | |||||||||||||||||
| Production Systems |
519 | 473 | 319 | |||||||||||||||||
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| $ | 1,600 | $ | 1,591 | $ | 1,422 | 1% | 12% | |||||||||||||
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| Pretax Operating Margin |
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| Reservoir Performance |
20.1 | % | 20.6 | % | 20.5 | % | ||||||||||||||
| Well Construction |
21.5 | % | 21.7 | % | 22.1 | % | ||||||||||||||
| Production Systems |
16.7 | % | 15.6 | % | 13.5 | % | ||||||||||||||
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| 19.4 | % | 19.3 | % | 19.0 | % | 16 bps | 40 bps | |||||||||||||
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About SLB
SLB (NYSE: SLB) is a global technology company driving energy innovation for a balanced planet. With a global presence in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
Conference Call Information
SLB will hold a conference call to discuss the earnings press release and business outlook on Friday, October 18, 2024. The call is scheduled to begin at 9:30 a.m. U.S. Eastern time. To access the call, which is open to the public, please contact the conference call operator at +1 (844) 721-7241 within North America, or +1 (409) 207-6955 outside North America, approximately 10 minutes prior to the call’s scheduled start time, and provide the access code 8858313. At the conclusion of the conference call, an audio replay will be available until November 18, 2024, by dialing +1 (866) 207-1041 within North America, or +1 (402) 970-0847 outside North America, and providing the access code 8893594. The conference call will be webcast simultaneously at www.slb.com/irwebcast on a listen-only basis. A replay of the webcast will also be available at the same website until November 18, 2024.
| Investors | Media | |
| James R. McDonald – SVP, Investor Relations & Industry Affairs, SLB Joy V. Domingo – Director of Investor Relations, SLB Tel: +1 (713) 375-3535 |
Josh Byerly – SVP of Communications, SLB Moira Duff – Director of External Communications, SLB Tel: +1 (713) 375-3407 Email: media@slb.com |
###
Forward-Looking Statements
This third-quarter 2024 earnings press release, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about our financial and performance targets and other forecasts or expectations regarding, or dependent on, our business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; our business strategies, including digital and “fit for basin,” as well as the strategies of our customers; our capital allocation plans, including dividend plans and share repurchase programs; our APS projects, joint ventures, and other alliances; the impact of the ongoing conflict in Ukraine on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; and future results of operations, such as margin levels. These statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by our customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers and suppliers; the inability to achieve our financial and performance targets and other forecasts and expectations; the inability to achieve our net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical, and business conditions in key regions of the world; the ongoing conflict in Ukraine; foreign currency risk; inflation; changes in monetary policy by governments; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays, or cancellations; challenges in our supply chain; production declines; the extent of future charges; the inability to recognize efficiencies and other intended benefits from our business strategies and initiatives, such as digital or new energy, as well as our cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in this press release and our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission (the “SEC”).
This press release also includes forward-looking statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction. Factors and risks that may impact future results and performance include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX; the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers, and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change, or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction; other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction, as well as the risk factors discussed in SLB’s and ChampionX’s most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this press release regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this press release are made as of the date of this release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.
Additional Information about the Transaction with ChampionX and Where to Find It
In connection with the proposed transaction with ChampionX, SLB filed with the SEC a registration statement on Form S-4 on April 29, 2024 (as amended, the “Form S-4”) that includes a proxy statement of ChampionX and that also constitutes a prospectus of SLB with respect to the shares of SLB to be issued in the proposed transaction (the “proxy statement/prospectus”). The Form S-4 was declared effective by the SEC on May 15, 2024. SLB and ChampionX filed the definitive proxy statement/prospectus with the SEC on May 15, 2024 (https://www.sec.gov/Archives/edgar/data/87347/000119312524139403/d818663d424b3.htm), and it was first mailed to ChampionX stockholders on or about May 15, 2024. Each of SLB and ChampionX may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the Form S-4 or proxy statement/prospectus or any other document that SLB or ChampionX may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the Form S-4 and the proxy statement/prospectus (if and when available) and other documents containing important information about SLB, ChampionX and the proposed transaction, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by SLB will be available free of charge on SLB’s website at https://investorcenter.slb.com. Copies of the documents filed with, or furnished to, the SEC by ChampionX will be available free of charge on ChampionX’s website at https://investors.championx.com. The information included on, or accessible through, SLB’s or ChampionX’s website is not incorporated by reference into this communication.
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