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Sep 30, 2024

Schlumberger Q3 2024 Earnings Report

SLB reported steady sequential revenue and increased year-on-year, with growth in GAAP EPS and adjusted EBITDA.

Key Takeaways

SLB announced strong third-quarter results with revenue of $9.16 billion, a 10% increase year-on-year. GAAP EPS was $0.83, up 6% year-on-year, and adjusted EBITDA was $2.34 billion, a 13% increase year-on-year. The company highlighted its focus on cost optimization and digital solutions contributing to the positive results.

Revenue increased 10% year-on-year to $9.16 billion.

GAAP EPS increased 6% year-on-year to $0.83.

Adjusted EBITDA increased 13% year-on-year to $2.34 billion.

Free cash flow was $1.81 billion.

Total Revenue
$9.16B
Previous year: $8.31B
+10.2%
EPS
$0.89
Previous year: $0.78
+14.1%
Gross Profit
$1.92B
Previous year: $1.72B
+11.9%
Cash and Equivalents
$4.46B
Previous year: $3.74B
+19.5%
Free Cash Flow
$1.81B
Previous year: $1.04B
+74.0%
Total Assets
$49.8B
Previous year: $45.8B
+8.6%

Schlumberger

Schlumberger

Schlumberger Revenue by Segment

Schlumberger Revenue by Geographic Location

Forward Guidance

SLB anticipates strong cash flows and a full-year adjusted EBITDA margin at or above 25%, supported by international leadership, robust digital sales, and ongoing cost optimization initiatives.

Positive Outlook

  • Long-cycle projects in international, deepwater, and gas markets.
  • Digital leadership and growing presence in emerging low-carbon markets.
  • Sustained level of upstream investment expected in the years to come.
  • Strong cash flows.
  • Full-year adjusted EBITDA margin at or above 25%.

Challenges Ahead

  • Some customers have adopted a more cautious approach to their near-term capital expenditures.
  • Discretionary spending amid lower commodity prices.
  • Recent geopolitical events.
  • Potential supply disruptions.
  • Rate of upstream spending growth has moderated in the last few months due to the macroenvironment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income