Investment Rating - The report does not explicitly state an investment rating for Schlumberger (SLB US) [1][2][3] Core Views - Schlumberger's Q3 2024 performance is expected to be positively received by the market, with adjusted net income of $1.507 billion, surpassing consensus estimates [2] - The company reaffirmed its FY2024 adjusted EBITDA growth guidance of approximately 14-15%, with EBITDA margins expected to reach or exceed 25% [2] - Digital & Integration business exceeded expectations with revenue of $386 million, up 23% YoY, and an operating income margin of 35%, higher than the consensus of 32% [3] - Reservoir Performance business underperformed with revenue of $367 million, down 9% YoY, and an operating income margin of 20%, below the consensus of 21% [3] - Well Construction business met expectations with revenue of $3.312 billion, down 3% YoY, and an operating income margin of 22%, in line with consensus [3] - Production Systems business outperformed with revenue of $3.096 billion, up 31% YoY, and an operating income margin of 17%, higher than the expected 16% [3] Financial Performance Summary - Total revenue for Q3 2024 was $9.159 billion, slightly below consensus but up 10% YoY [5] - Adjusted EBITDA for Q3 2024 was $2.343 billion, up 13% YoY, with a margin of 26%, higher than the consensus of 25% [5] - Adjusted net income for Q3 2024 was $1.507 billion, up 34% YoY, with a margin of 16%, higher than the consensus of 14% [5] - Diluted EPS for Q3 2024 was $0.85, up 9% YoY [5] Business Segment Performance - **Digital & Integration**: Revenue of $1.088 billion, up 11% YoY, with operating income of $386 million, up 23% YoY, and a margin of 35% [5] - **Reservoir Performance**: Revenue of $1.823 billion, up 9% YoY, with operating income of $367 million, up 7% YoY, and a margin of 20% [5] - **Well Construction**: Revenue of $3.312 billion, down 3% YoY, with operating income of $714 million, down 6% YoY, and a margin of 22% [5] - **Production Systems**: Revenue of $3.103 billion, up 31% YoY, with operating income of $519 million, up 63% YoY, and a margin of 17% [5]

Group 1 - The author expresses a bullish outlook on oil and gas, offshore services, commodities, and emerging markets, while being bearish on energy transition [1] - The article emphasizes that the author's opinions are personal and not investment advice, highlighting the importance of conducting due diligence [2][3] Group 2 - The author holds a beneficial long position in SLB shares, indicating confidence in the company's performance [2] - There is a clear distinction made that past performance does not guarantee future results, underscoring the inherent uncertainties in investment [3]

Earnings Performance - SLB reported a 10% year-over-year increase in Q3 revenue to $9.16 billion, missing consensus estimates by $100 million [1] - Earnings per share (EPS) came in at 83 cents, 4 cents below forecasts [1] - North American revenue rose 3% to $1.69 billion, constrained by lower drilling activity in U.S. land due to gas prices and capital discipline by operators [1] - International revenue surged 12% to $7.43 billion, driven by higher demand in the Middle East & Asia, while Latin American revenue declined by 3% [1] Impact of Commodity Prices - Lower commodity prices negatively affected SLB's quarterly results, leading customers to reduce activity and discretionary spending [1] - The decline in oil and natural gas prices also dragged down the S&P Energy Sector Index [1] - SLB shares fell approximately 4% to $42.25 on Friday, with a year-to-date decline of 19% [2] CEO Commentary on Market Conditions - CEO Olivier Le Peuch noted that commodity prices have been under pressure due to uncertainty around OPEC+ supply releases, weaker demand from China, and softer economic growth in the U.S. and Europe [2] - These factors resulted in a cautious approach by customers, impacting SLB's earnings [2] Industry Impact - SLB was not the only company affected by falling commodity prices, as the S&P Energy Sector Index also declined slightly [2]

Financial Data and Key Metrics Changes - The third-quarter earnings per share excluding charges and credits was $0.89, an increase of $0.04 sequentially and $0.11, or 14%, year-over-year [18] - Third-quarter revenue was $9.2 billion, essentially flat sequentially, but represented another quarter of margin expansion [19] - Adjusted EBITDA margin increased by 55 basis points to 25.6%, the highest level since Q1 2016 [19] Business Line Data and Key Metrics Changes - Digital & Integration revenue was $1.1 billion, up 4% sequentially, with margins expanding 456 basis points to 35.5% [20] - Reservoir Performance revenue was flat at $1.8 billion, with margins contracting 53 basis points due to an unfavorable technology mix [20] - Well Construction revenue decreased 3% sequentially to $3.3 billion, with margins decreasing 19 basis points [21] - Production Systems revenue increased 3% sequentially to $3.1 billion, with margins expanding 110 basis points to 16.7% [21] Market Data and Key Metrics Changes - Revenue in North America increased 3% sequentially, driven by higher offshore activity in the Gulf of Mexico, while U.S. land drilling activity remained constrained [8] - International markets saw steady revenue despite lower reactivity due to cautious discretionary spending influenced by commodity prices [8] - Revenue in Europe and Africa was largely unchanged, with strong production in North Africa offset by declines in Latin America [8] Company Strategy and Development Direction - The company aims to leverage its differentiated market positioning, digital leadership, and operational efficiency to navigate the evolving macro environment [7] - SLB is focused on maintaining margin expansion and expects to deliver full-year adjusted EBITDA margins at or above 25% for 2024 [16] - The company is well-positioned to benefit from long-cycle deepwater projects and gas investments, particularly in Asia and the Middle East [14] Management's Comments on Operating Environment and Future Outlook - Management noted that commodity prices have been under pressure due to oversupply concerns and weaker demand, leading to cautious spending by customers [13] - Despite current market conditions, long-term fundamentals for oil and gas remain strong, with increasing energy demand and a focus on energy security [14] - The company anticipates muted revenue growth in Q4, with a favorable mix of digital and product sales offset by budget exhaustion in U.S. land [16] Other Important Information - The company generated strong free cash flow of $1.81 billion in Q3, a $1 billion increase compared to the previous quarter [21] - SLB signed a definitive agreement to sell its interests in the Palliser APS project for approximately $430 million, which will reduce capital intensity and earnings volatility [22][23] - The company reaffirmed its commitment to return at least $4 billion to shareholders in 2025, reflecting confidence in cash flow generation [24] Q&A Session Summary Question: Can you discuss the drivers of margin expansion as we move into 2025? - Management expressed confidence in maintaining margin expansion through digital technology and cost optimization initiatives [27][28] Question: What were the key takeaways from the recent digital forum? - The forum was deemed a success, showcasing the digital value proposition and the acceleration of digital adoption among customers [30][31] Question: How does the sale of the Palliser Block impact financials? - The sale will remove approximately $500 million in revenue and $150 million in annual CapEx, along with significant future abandonment liabilities [45][46] Question: What is the outlook for deepwater projects driving growth beyond 2025? - Management indicated that deepwater projects are expected to remain a growth engine, with significant offshore FIDs anticipated [36] Question: How does the company view the pricing dynamics in the current environment? - The pricing environment is seen as constructive, with capital discipline in the industry supporting pricing stability [48] Question: What are the growth opportunities in the lithium extraction space? - The company is optimistic about its lithium DLE technology and plans to work with partners to commercialize it [50][51] Question: How will free cash flow and capital discipline impact returns to shareholders? - Management confirmed that free cash flow is expected to increase in 2025, supporting the commitment to return capital to shareholders [56][57]

SLB (SLB) reported third-quarter 2024 earnings of 89 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 88 cents. The bottom line also increased from the year-ago quarter’s level of 78 cents.The oilfield service giant recorded total quarterly revenues of $9.16 billion, which missed the Zacks Consensus Estimate of $9.28 billion. The top line improved from the year-ago quarter’s figure of $8.31 billion.The strong quarterly earnings were primarily driven by broad-based ...

Schlumberger (SLB) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.14%. A quarter ago, it was expected that this world's largest oilfield services company would post earnings of $0.83 per share when it actually produced earnings of $0.85, delivering a surprise of 2.41%.Over the last ...

News Release Exhibit 99 SLB Announces Third-Quarter 2024 Results • Revenue of $9.16 billion was steady sequentially and increased 10% year on year • GAAP EPS of $0.83 increased 8% sequentially and 6% year on year • EPS, excluding charges and credits, of $0.89 increased 5% sequentially and 14% year on year • Net income attributable to SLB of $1.19 billion increased 7% sequentially and 6% year on year • Adjusted EBITDA of $2.34 billion increased 2% sequentially and 13% year on year • Cash flow from operations ...

Schlumberger Limited SLB will release earnings results for its third quarter, before the opening bell on Friday, Oct. 18.Analysts expect the Buffalo, New York-based company to report quarterly earnings at 88 cents per share, up from 71 cents per share in the year-ago period. SLB projects to report revenue of $9.25 billion for the quarter, compared to $7.58 billion a year earlier, according to data from Benzinga Pro.On Thursday, SLB agreed to sell its interests in Palliser Block.SLB shares gained 0.7% to clo ...

SLB (SLB) is set to report third-quarter 2024 results on Friday, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for third-quarter earnings is pegged at 88 cents per share, implying growth of 12.8% from the year-ago reported number. The estimate was revised downward by three analysts in the past seven days against zero upward movements. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $9.3 billion, indi ...

The most recent trading session ended with Schlumberger (SLB) standing at $44.78, reflecting a +0.4% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%.The world's largest oilfield services company's shares have seen an increase of 12.06% over the last month, surpassing the Oils-Energy sector's loss of 2.26% and the S&P 500's gain of 5.36%.Investor ...