SLB Misses on Q1 Earnings and Revenues Amid Weak Activity

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].