SLB Beats on Q4 Earnings, Provides '25 Capex Guidance

Core Viewpoint - SLB reported strong fourth-quarter 2024 earnings, exceeding expectations with earnings of 92 cents per share and total revenues of $9.28 billion, reflecting growth from the previous year [1][2]. Financial Performance - The quarterly earnings growth was driven by broad-based earnings growth and margin expansion, particularly in the Middle East and Asia, alongside advancements in AI and autonomous operations [2]. - SLB's free cash flow for the fourth quarter was $1.63 billion, with cash and short-term investments totaling approximately $4.67 billion and long-term debt at $11.02 billion [7]. Segmental Performance - Digital & Integration unit revenues reached $1,156 million, a 10% increase year over year, with pre-tax operating income of $442 million, up 24% [3]. - Reservoir Performance unit revenues increased 4% to $1.81 billion, with pre-tax operating income of $370 million, remaining flat year over year [4]. - Well Construction segment revenues fell 5% to $3.27 billion, with pre-tax operating income decreasing 12% to $681 million [5]. - Production Systems segment revenues amounted to $3.19 billion, up 9% year over year, with pre-tax operating income improving 14% to $506 million [6]. Outlook - SLB anticipates full-year 2025 capital investment to be approximately $2.3 billion, lower than the 2024 level of $2.6 billion [8].