Financial Performance - ChampionX Corporation reported first quarter 2025 revenue of $864.5 million, a decrease of 5% sequentially, primarily due to seasonal declines in international operations [3][4] - Net income attributable to ChampionX was $85.8 million, with an income before income taxes margin of 12.1% and adjusted EBITDA of $190.9 million, reflecting a 22.1% adjusted EBITDA margin, the second-highest level for the company [3][4][29] - Cash from operating activities was $66.8 million, representing 78% of net income, and free cash flow was $38.6 million, marking the 12th consecutive quarter of positive free cash flow [4][37] Segment Performance - Production Chemical Technologies revenue was $523.4 million, down 8% sequentially, with segment operating profit of $82.2 million and an adjusted segment EBITDA margin of 20.8% [9][10][29] - Production & Automation Technologies revenue was $264.4 million, a decrease of 2% sequentially, with segment operating profit of $37.6 million and an adjusted segment EBITDA margin of 26.6% [11][12][29] - Drilling Technologies revenue was $50.5 million, down 3% sequentially, with segment operating profit of $8.2 million and an adjusted segment EBITDA margin of 20.3% [13][29] - Reservoir Chemical Technologies revenue increased by 23% sequentially to $26.9 million, with segment operating profit margin rising to 20.5% [14][15][29] Business Highlights - ChampionX secured several contracts in the Middle East and North America, including a major capital project in the Gulf of America and a significant volume of hydrate inhibitor for an Australian operator [16] - The company continues to expand its digital technologies, with strong market adoption of new solutions such as XSPOC production optimization software and SMARTEN™ Lite rod pump controllers [19] - ChampionX's Integrated Production Optimization (IPO) business is expanding, delivering measurable production uplift and optimizing chemical spend for operators [19] Acquisition Update - On April 2, 2024, SLB and ChampionX announced a definitive Agreement and Plan of Merger for SLB to acquire ChampionX in an all-stock transaction, which has received board and stockholder approval [7][8]

Core Insights - Schlumberger reported a disappointing first quarter, with a nearly 2% decline in stock price despite a commitment to return billions to shareholders [1] Financial Performance - Revenue decreased by 3% year-over-year to $8.49 billion, while adjusted net income fell by 9% to $988 million, equating to $0.72 per share [2] - Both revenue and adjusted net income fell short of analyst expectations, which were $8.64 billion for revenue and $0.74 per share for adjusted net income [3] Market Dynamics - The company experienced mixed performance across regions, with growth in North America offset by declines in Mexico, Saudi Arabia, offshore Africa, and Russia [3] - North American revenue showed an encouraging increase of 8% [4] Shareholder Returns - Schlumberger's board approved a quarterly dividend of just under $0.29 per share, maintaining the previous payout level [5] - The company plans to allocate over 50% of its free cash flow to dividends and share buybacks, with a commitment of at least $4 billion for these activities in 2025 [5]

Financial Data and Key Metrics Changes - First quarter revenue decreased by 3% year on year, totaling $8.5 billion, primarily due to lower international revenue offsetting strong North American results [9][24] - Earnings per share excluding charges and credits was $0.72, a decrease of $0.03 compared to the same quarter last year [23] - Adjusted EBITDA margin for the first quarter was 23.8%, up 18 basis points year on year [24] Business Line Data and Key Metrics Changes - Digital and Integration revenue increased by 6% year on year, driven by a 17% growth in digital revenue [28] - Reservoir Performance revenue decreased by 1% year on year, with margins declining due to less favorable activity mix and project startup costs [29] - Well Construction revenue declined by 12% year on year, primarily due to lower drilling activity in North America and international markets [29] - Production Systems revenue increased by 4%, with margins growing by 197 basis points year on year, supported by strong demand in production and recovery activities [30] Market Data and Key Metrics Changes - International revenue decreased by 5% year on year, largely driven by reduced activity in Mexico, Saudi Arabia, and Russia [24] - North America revenue increased by 8% year on year, attributed to higher digital and subsea production system sales [24] - Double-digit growth was achieved in several markets, including the UAE, North Africa, Kuwait, Argentina, and China [10] Company Strategy and Development Direction - The company remains focused on executing its strategy, managing costs, and delivering differentiated performance for customers amid global economic uncertainty [16] - There is an increased emphasis on production recovery and technology deployment to unlock new growth potential [17] - The company is capitalizing on low carbon markets and expanding its Data Center Infrastructure Solutions business [19][63] Management's Comments on Operating Environment and Future Outlook - The management expects global upstream investment to decline compared to 2024, with more resilient customer spending in the Middle East and Asia [15] - The company anticipates flat to mid-single-digit revenue growth in the second half of the year, assuming stable oil prices [20] - Management expressed confidence in the company's ability to generate strong margins and cash flows despite market uncertainties [21] Other Important Information - The company is committed to returning at least $4 billion to shareholders in 2025 [20] - The pending acquisition of ChampionX is progressing, with confidence in closing by the end of the second quarter or early third quarter of 2025 [33][75] Q&A Session Summary Question: Outlook for international and North American markets - Management clarified that upstream spending is expected to decline year on year, with North America facing more downside exposure than international markets [38] Question: Activity in Saudi Arabia - Management indicated that while there are many moving parts, they expect an uptick in activity in Saudi Arabia driven by gas ambitions and OPEC production stabilization [44][46] Question: EBITDA margin expectations - Management aims to maintain an EBITDA margin around 25% for the full year, but tariffs could impact this goal [52] Question: Digital growth resilience - Management believes that the secular trend of digital adoption is accelerating, with mid to high teens growth expected in the digital business [55] Question: Diversification strategy beyond oil and gas - Management outlined steps taken to diversify into low carbon markets, including carbon capture and geothermal projects, with revenue expected to exceed $1 billion in 2025 [60][65] Question: Confidence in free cash flow generation - Management expressed confidence in strong free cash flow generation throughout the year, supporting their commitment to return capital to shareholders [103]

Core Viewpoint - SLB reported weaker-than-expected earnings and revenues for the first quarter of 2025, primarily due to reduced drilling activity in key regions [1][2]. Financial Performance - Earnings per share (EPS) for Q1 2025 were 72 cents, missing the Zacks Consensus Estimate of 74 cents and down from 75 cents in the previous year [1]. - Total quarterly revenues were $8.49 billion, below the Zacks Consensus Estimate of $8.59 billion and down from $8.71 billion year-over-year [1]. Segmental Performance - **Digital & Integration**: Revenues increased by 6% year-over-year to $1,006 million, with pre-tax operating income rising 21% to $306 million, surpassing estimates [3][4]. - **Reservoir Performance**: Revenues decreased by 1% to $1.7 billion, with pre-tax operating income falling 17% to $282 million, missing estimates [5]. - **Well Construction**: Revenues fell 12% to $2.98 billion, with pre-tax operating income down 15% to $589 million, aligning closely with estimates [6]. - **Production Systems**: Revenues rose 4% to $2.94 billion, with pre-tax operating income improving 19% to $475 million, exceeding estimates [7]. Cash Flow & Financials - SLB reported free cash flow of $103 million for the first quarter [8]. - As of March 31, 2024, the company had approximately $3.89 billion in cash and short-term investments, with long-term debt at $10.53 billion [8]. Outlook - SLB maintained its full-year 2025 capital investment guidance at approximately $2.3 billion, lower than the 2024 level of $2.6 billion [9].

Revenue Performance - First-quarter 2025 revenue of $8.5 billion decreased 3% year on year, with North America revenue growing by 8% to $1.7 billion, while international revenue declined 5% to $6.7 billion[64]. - Digital & Integration revenue increased 6% year on year to $1.0 billion, driven by a 17% growth in digital revenue, despite lower APS revenue due to a temporary disruption[68]. - Reservoir Performance revenue of $1.7 billion declined 1% year on year, with a pretax operating margin of 17% decreasing by 311 basis points due to lower evaluation activity[70]. - Well Construction revenue of $3.0 billion declined 12% year on year, with a pretax operating margin of 20% decreasing by 71 basis points due to reduced drilling activity[72]. - Production Systems revenue of $2.9 billion increased 4% year on year, with a pretax operating margin of 16% increasing by 197 basis points due to improved profitability[73]. - Internationally, Latin America revenue of $1.5 billion declined 10% year on year, primarily due to reduced drilling activity in Mexico[66]. Financial Metrics - The effective tax rate for Q1 2025 was 22%, up from 19% in Q1 2024, primarily due to charges and credits that did not result in a tax benefit[85]. - Net income for the first three months of 2025 was $829 million, down from $1,098 million in the same period of 2024, representing a decrease of approximately 24.5%[92]. - Cash flow from operations increased to $660 million in Q1 2025, compared to $327 million in Q1 2024, marking a growth of approximately 102%[92]. - Free cash flow for Q1 2025 was $103 million, a significant improvement from a negative $222 million in Q1 2024[92]. - SLB's net debt increased to $10.105 billion by the end of Q1 2025, up from $8.679 billion at the end of Q1 2024[92]. Capital Investments and Shareholder Returns - Capital investments totaled $600 million in Q1 2025, up from $500 million in Q1 2024, with full-year 2025 capital investments expected to be around $2.3 billion[94]. - SLB announced a 3.6% increase in its quarterly cash dividend from $0.275 to $0.285 per share, with dividends paid in Q1 2025 amounting to $386 million compared to $357 million in Q1 2024[94]. - SLB entered into accelerated share repurchase agreements to buy back $2.3 billion of its common stock, completing the repurchase of 56.8 million shares at an average price of $40.51[94]. Cash and Liquidity - Cash as of March 31, 2025, was $2.936 billion, an increase from $2.788 billion year on year, while net debt increased to $(10.105) billion[91]. - As of March 31, 2025, SLB had $3.9 billion in cash and short-term investments, along with $5.0 billion in committed debt facilities, sufficient to meet business requirements for at least the next 12 months[93]. Other Notable Items - Charges and credits for Q1 2025 totaled $206 million, with workforce reductions accounting for $158 million of this amount[89]. - SLB recorded revenue of approximately $100 million related to the Palliser APS project in Q1 2025, with a planned cash proceeds of about $430 million from its sale expected to close in Q2 2025[96]. - Only three countries accounted for more than 5% of SLB's net receivable balance, with the United States representing over 10% and Mexico at 7%[95].

Schlumberger (SLB) came out with quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.70%. A quarter ago, it was expected that this world's largest oilfield services company would post earnings of $0.90 per share when it actually produced earnings of $0.92, delivering a surprise of 2.22%.Over the las ...

Financial Performance - Revenue for Q1 2025 was $8.49 billion, a decrease of 3% year-on-year[4] - Net income attributable to SLB was $797 million, down 25% year-on-year[4] - Adjusted EBITDA was $2.02 billion, a decrease of 2% year-on-year[4] - SLB's revenue for Q1 2025 was $8,490 million, a decrease of 2.5% compared to $8,707 million in Q1 2024[46] - Net income attributable to SLB for Q1 2025 was $797 million, down 25.4% from $1,068 million in Q1 2024[46] - SLB's diluted earnings per share (EPS) for Q1 2025 was $0.58, compared to $0.74 in Q1 2024, reflecting a 21.6% decline[46] - Total revenue for the first quarter of 2025 was $8,490 million, a decrease of 8% sequentially from $9,284 million in the fourth quarter of 2024 and a decrease of 4% year-on-year from $8,707 million in the first quarter of 2024[53] - Adjusted EBITDA for the first quarter of 2025 was $2,020 million, with an adjusted EBITDA margin of 23.8%, compared to $2,382 million and 25.7% in the fourth quarter of 2024, and $2,057 million and 23.6% in the first quarter of 2024[65] - Cash flow from operations for the first quarter of 2025 was $660 million, while free cash flow was $103 million[56] - Net income attributable to SLB for the first quarter of 2025 was $797 million, compared to $1,095 million in the fourth quarter of 2024 and $1,068 million in the first quarter of 2024[66] Revenue Breakdown - Revenue in North America increased 8% year-on-year to $1.72 billion, driven by higher digital sales and subsea production systems[27] - International revenue decreased by 5% year-on-year, primarily due to a slowdown in Mexico and lower activity in Russia[21] - Reservoir Performance revenue declined 1% year-on-year to $1.70 billion, with strong unconventional stimulation offset by lower evaluation and exploration activity[33] - Well Construction revenue decreased 12% year-on-year to $2.98 billion, reflecting lower drilling activity in several regions[36] - Production Systems revenue increased 4% year-on-year to $2.94 billion, supported by strong demand for surface production systems and data center infrastructure solutions[38] - Revenue from the Reservoir Performance division for the first quarter of 2025 was $1,700 million, down 6% year-on-year[68] - Revenue from the Well Construction division for the first quarter of 2025 was $2,977 million, down 11% year-on-year[68] - Revenue from the Production Systems division for the first quarter of 2025 was $2,938 million, up 4% year-on-year[68] Shareholder Returns - SLB is committed to returning a minimum of $4 billion to shareholders in 2025 through dividends and share repurchases[15] - An accelerated share repurchase transaction was completed, repurchasing $2.3 billion of common stock at an average price of $40.51[18] - Total shares outstanding as of March 31, 2025, were 1.360 billion, down from 1.401 billion at the end of the previous quarter[61] - SLB's capital allocation plans include dividend plans and share repurchase programs, reflecting a focus on returning value to shareholders[71] Digital Initiatives and Innovations - Digital revenue grew 17% year-on-year, contributing to a 6% increase in Digital & Integration revenue[13] - SLB entered into an agreement to purchase Interactive Network Technologies, Inc. to enhance its digital platform capabilities[17] - Digital & Integration revenue reached $1.01 billion, a 6% year-on-year increase driven by 17% growth in digital revenue[30] - SLB launched EWC™ electric well control technologies to enhance drilling operations and reduce costs[42] - SLB partnered with Shell to deploy Petrel™ subsurface software globally, aimed at increasing digital capabilities and operational efficiencies[43] Operational Efficiency and Cost Management - Digital & Integration pretax operating margin expanded 380 bps year-on-year to 30% due to improved profitability and cost efficiency[31] - Reservoir Performance pretax operating margin decreased 311 bps year-on-year to 17% due to reduced profitability from lower evaluation activity[34] - Well Construction pretax operating margin declined 71 bps year-on-year to 20% amid reduced activity across markets[37] - The company emphasizes the importance of operational efficiencies and cost reduction strategies in achieving its financial targets[73] Strategic Projects and Collaborations - SLB has been awarded a contract in Malaysia for a three-year digital transformation project, focusing on AI-driven safety and sustainability solutions[44] - The company is collaborating with PT. Pertamina in Indonesia to deploy AI and machine learning solutions, enhancing operational efficiency[44] - SLB's carbon capture plant in Norway is expected to capture 350,000 metric tons of CO2 annually, contributing to sustainability efforts[44] - The modular carbon capture plant in the Netherlands has a capacity to capture up to 100,000 metric tons of CO2 per year, aimed at the horticulture and food sectors[44] - SLB is developing Canada's first next-generation geothermal project, targeting up to 30 megawatts of emissions-free power generation[44] Market Risks and Future Outlook - SLB's first-quarter 2025 earnings report includes forward-looking statements regarding financial and performance targets, emphasizing uncertainty in oil and natural gas demand and prices[71] - The ongoing conflict in Ukraine is highlighted as a risk factor impacting global energy supply and market conditions[71] - SLB's financial performance is subject to various risks, including inflation, foreign currency risk, and changes in government regulations[73] - SLB's future results may vary significantly from projections due to uncertainties in global economic conditions and customer spending[73] - The company anticipates challenges in integrating the businesses of SLB and ChampionX, including retaining key personnel and maintaining customer relationships[72] - The proposed transaction between SLB and ChampionX is expected to create synergies and value, with the SEC declaring the registration statement effective on May 15, 2024[74] - Investors are encouraged to review the proxy statement/prospectus for important information regarding the proposed transaction with ChampionX[74]

Market Overview - US stock index futures are all down, with Dow futures down 0.47%, S&P 500 futures down 0.31%, and Nasdaq futures down 0.26% [1] - European indices also show declines, with Germany's DAX down 0.07%, UK's FTSE 100 down 0.04%, France's CAC40 down 0.14%, and the Euro Stoxx 50 down 0.18% [2] - WTI crude oil increased by 1.25% to $63.05 per barrel, while Brent crude rose by 1.03% to $66.80 per barrel [2] US Stock Market Insights - Jefferies highlights a critical point for the S&P 500 index at 5500, which needs to be breached to recover from a 19% drop since February's historical high [3] - Christopher Wood from Jefferies suggests that the golden era for US stocks is over, predicting further declines in US equities, bonds, and the dollar [5] Automotive Industry - Japanese automakers saw a surge in US sales in March, with Toyota's sales up 8% to 231,336 units, Honda's up 13%, and Nissan's up 10% [4] Company Earnings Reports - Merck's Q1 earnings exceeded expectations with sales of $15.5 billion, although they anticipate a $200 million loss due to tariffs by 2025 [9] - American Airlines withdrew its 2025 profit guidance, reporting a Q1 net loss of $473 million, worsened by tariff pressures and government spending uncertainties [9] - Procter & Gamble lowered its annual organic sales growth forecast from 3%-5% to 2% due to tariff pressures and fluctuating consumer demand [10] - Sanofi's Q1 earnings surpassed expectations, driven by strong demand for its Dupixent drug, with sales of €9.89 billion [10] - IBM reported Q1 sales of $14.5 billion, exceeding expectations, but concerns remain regarding the impact of tariffs and government spending cuts on business [11] - Texas Instruments provided a positive Q2 earnings outlook, with expected revenue between $4.17 billion and $4.53 billion, driven by improved demand in industrial and automotive sectors [12] Technology Sector - Google Chrome's potential market value is estimated at over $50 billion, according to competitors, amid ongoing antitrust scrutiny [13] - TSMC plans to begin production using A14 chip technology in 2028, aiming to maintain its leadership in the semiconductor industry [13]

Core Viewpoint - SLB is expected to report first-quarter 2025 results on April 25, with adjusted earnings anticipated to show a slight decline compared to the previous year, despite a favorable crude pricing environment supporting upstream investments [1][2][5]. Earnings Performance - In the last reported quarter, SLB's adjusted earnings were 92 cents per share, exceeding the Zacks Consensus Estimate of 90 cents, driven by broad-based earnings growth and margin expansion, particularly in the Middle East and Asia [1]. - SLB has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 1.8% [1]. Earnings Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is 74 cents, reflecting a 1.3% decline from the prior year's reported figure [2]. - Revenue estimates stand at $8.6 billion, indicating a 1.2% decrease from the previous year [2]. Market Conditions - Favorable crude prices have been reported, with West Texas Intermediate spot prices averaging $75.74, $71.53, and $68.24 per barrel for January, February, and March respectively, supporting exploration and production activities [3]. - Increased upstream investments are expected to boost demand for SLB's services, particularly in reservoir optimization and well construction [4]. Industry Trends - While drilling activity in the North American land market has been subdued, international drilling activity has shown modest growth, especially in the Middle East, which is likely to benefit SLB's earnings [4]. - A strong focus on global energy security and increased spending on exploration and production are anticipated to positively impact SLB's profitability in the upcoming quarter [5]. Earnings Expectations - SLB has an Earnings ESP of +0.20%, indicating a potential earnings beat, supported by a Zacks Rank of 3 (Hold) [6].

Core Insights - Analysts project Schlumberger (SLB) will report quarterly earnings of $0.74 per share, a decline of 1.3% year over year, with revenues expected to reach $8.6 billion, down 1.2% from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.9% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Revenue from Digital & Integration is estimated at $988.06 million, reflecting a year-over-year increase of 3.7% [5] - Revenue from Reservoir Performance is projected at $1.73 billion, indicating a slight increase of 0.2% from the prior year [5] - Revenue from Production Systems is expected to reach $2.97 billion, showing a year-over-year growth of 5.2% [5] - Revenue from Well Construction is forecasted at $3.03 billion, representing a significant decline of 10% year over year [6] - North America revenue is estimated at $1.60 billion, a 0.4% increase from the previous year [6] - Latin America revenue is projected at $1.50 billion, reflecting a decline of 9.2% year over year [6] - Revenue from Europe & Africa is expected to be $2.28 billion, down 1.9% year over year [7] - Revenue from the Middle East & Asia is projected at $3.13 billion, indicating a year-over-year increase of 1.5% [7] Income Before Taxes Estimates - Income Before Taxes from Digital & Integration is estimated at $292.93 million, up from $254 million in the same quarter last year [8] - Income Before Taxes from Reservoir Performance is projected at $334.53 million, slightly down from $339 million year over year [8] - Income Before Taxes from Production Systems is expected to be $438.85 million, an increase from $400 million in the previous year [9] - Income Before Taxes from Well Construction is estimated at $586.44 million, down from $690 million year over year [9] Stock Performance - Schlumberger shares have decreased by 17% in the past month, compared to an 8.9% decline in the Zacks S&P 500 composite [9]