Schlumberger's Digital Growth Leads Q4

Earnings and Revenue Performance - Schlumberger exceeded Q4 2024 earnings and revenue estimates with non-GAAP EPS of $0.92, beating the projected $0.90, and revenue of $9.28 billion, surpassing the $9.18 billion estimate [1] - Adjusted EBITDA grew by 5.1% year over year to $2.38 billion, while free cash flow increased by 1.9% to $1.63 billion [3] Business Overview and Growth Engines - Schlumberger is a global leader in oilfield services, focusing on Core, Digital, and New Energy growth engines, with an emphasis on energy transition, decarbonization, and technology innovation [4] - The company aims to enhance operational efficiency through digital integration and advancements in new energy areas like carbon capture and renewable technologies [5] Segment Performance and Geographic Trends - Digital & Integration division revenue grew 6% sequentially and 10% year over year, driven by demand for digital products and AI-driven solutions like the Lumi platform [6] - Well Construction segment revenue declined 5% year over year due to reduced drilling in regions like Mexico and Saudi Arabia [6] - North America showed strong growth with a 4% sequential and 7% year-over-year increase, while Latin America revenue declined 3% due to reduced drilling in Mexico [7] Operational Highlights and Financial Strategy - Adjusted EBITDA margin expanded, supported by digital integration, though some areas faced margin pressures from lower profitability in subsea production systems [8] - The company raised its quarterly dividend by 3.6% to $0.285 per share and increased its share buyback authorization to a minimum of $4 billion for the year [8] Future Outlook and Strategic Focus - Schlumberger expects continued momentum driven by digital growth and energy transition efforts, aiming to maintain strong EBITDA margins [9] - The company projects low to mid-single-digit international spending growth in 2025 and remains optimistic about steady market conditions [9] - Future earnings will be shaped by alignment with sustainable energy practices and ongoing technological evolution [10]