UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file No.: 1-4601 Schlumberger N.V. (Schlumberger Limited) (Exact name of registrant as specified in its charter) Title of each class Trading Symbol(s) Name of each exchange o ...

Last week, SLB (SLB) reported strong third-quarter 2024 results, driven by earnings growth from the Production Systems and Digital & Integration business segments. Despite the positive, the oilfield service giant's overall business outlook is not impressive.Before delving into the underlying reasons for the subdued outlook and addressing how investors should strategically position themselves regarding the stock, let’s first review the third-quarter results.SLB’s Q3 Earnings SnapshotOn Oct. 18, SLB reported ...

Core Insights - SLB has announced a definitive agreement to sell its interests in the Palliser Block in Alberta, Canada, as part of its strategy to streamline its portfolio and focus on technology-driven energy solutions [1][3] Group 1: Details of the Palliser Block Assets - The Palliser Block includes oil and gas wells, surface facilities, a pipeline network, and development rights across approximately 800,000 acres [2] - SLB acquired these assets in 2017 for roughly $1 billion CAD, with a daily production rate of 54,000 barrels of oil equivalent per day (boepd) at the time of acquisition [2] - The sale is subject to regulatory approval and is expected to be finalized in the fourth quarter of 2024, indicating SLB's ongoing efforts to realign operations and potentially free up capital for future investments [2] Group 2: SLB's Broader Strategy - SLB is shifting towards a technology-centric role in the energy industry, focusing on digitalization, decarbonization, and sustainable energy solutions [3] - The divestment of the Palliser Block aligns with SLB's strategy to move away from legacy oilfield assets and concentrate on energy innovation [3] - This decision reflects the ongoing transformation in global energy markets towards cleaner and more sustainable production methods [3] Group 3: Market Position and Comparisons - SLB currently holds a Zacks Rank 4 (Sell), indicating a less favorable market position compared to other energy stocks [4] - PEDEVCO Corp. and Archrock Inc. are highlighted as better-ranked stocks in the energy sector, both holding a Zacks Rank 1 (Strong Buy) [4][5] - PEDEVCO is positioned to benefit from its holdings in prolific oil-producing regions, while Archrock focuses on stable fee-based revenues from natural gas compression services [4][5]

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 ...