Schlumberger(US:SLB)2025-10-22 13:55Revenue Performance - Third-quarter 2025 revenue was $8.9 billion, an increase of $382 million, or 4%, compared to the second quarter of 2025[103] - Digital revenue reached $658 million, growing 11% sequentially, with a 22% increase in Digital Operations and a 28% increase in Digital Exploration[106] - Production Systems revenue increased 18% sequentially to $3.5 billion, primarily due to the acquisition of ChampionX, which contributed $575 million[111] - Reservoir Performance revenue was $1.68 billion, a decline of 1% sequentially, impacted by lower activity in the Middle East & Asia[108] - Well Construction revenue remained flat at $3.0 billion, with higher revenue in offshore Guyana and North America offset by lower activity in Saudi Arabia and Argentina[109] - Nine-month 2025 revenue totaled $25.96 billion, a decrease of 4% year-on-year, primarily due to activity reductions in Saudi Arabia, Mexico, and key offshore markets[115] - Digital revenue for the nine months of 2025 was $1.84 billion, a 6% year-on-year increase, driven by growth in Digital Operations and Platforms & Applications[117] - Production Systems revenue for the nine months of 2025 was $9.25 billion, reflecting a 5% year-on-year increase, aided by the acquisition of ChampionX[120] Financial Position - As of September 30, 2025, SLB reported cash and short-term investments totaling $3.6 billion, with committed debt facility agreements of $5.0 billion available[133] - Net debt increased to $9.181 billion as of September 30, 2025, compared to $8.461 billion at the end of 2024, reflecting a net debt increase of $1.776 billion during the nine months[130] - Free cash flow for the first nine months of 2025 was $1.826 billion, down from $2.359 billion in the same period of 2024[130] - Capital investments for the first nine months of 2025 were $1.7 billion, a decrease from $1.9 billion in the same period of 2024, with full-year expectations of approximately $2.4 billion[136] Shareholder Returns - Dividends paid during the first nine months of 2025 were $1.2 billion, compared to $1.1 billion in 2024, reflecting a 9% increase[136] - SLB repurchased $2.414 billion worth of shares at an average price of $40.23 per share during the first nine months of 2025, compared to $1.236 billion at an average price of $46.47 in 2024[132] - The company announced a 3.6% increase in its quarterly cash dividend from $0.275 to $0.285 per share, effective from April 2025[136] Future Outlook - SLB expects revenue growth in the fourth quarter driven by international markets and a full quarter of activity from the acquired ChampionX businesses[105] Taxation - The effective tax rate for the third quarter of 2025 was 23%, up from 18% in the second quarter of 2025[126] Other Transactions - The company disposed of the ChampionX Drilling Technologies business for proceeds of $286 million during the third quarter of 2025[136] - SLB recorded a net cash inflow of $338 million from the sale of its interest in the Palliser APS project during the second quarter of 2025[137] Accounts Receivable - SLB's net accounts receivable balance as of September 30, 2025, was significantly influenced by the United States and Mexico, each accounting for 11%[134]