Core Insights - SLB has secured a contract from Petrobras for oilfield services and technology for up to 35 wells in the Santos Basin, following a competitive bidding process [1][8] - The Santos Basin is a key oil and gas producing region in Latin America, with the wells targeting significant reserves in the Atapu and Sépia oil fields [2] Project Scope - The project will utilize SLB's advanced electric completions technologies and digital solutions to provide real-time production insights and enhance reservoir management [3] - Well completion work is scheduled to begin in mid-2026, supported by SLB's advanced interval control valves designed for high-flow-rate production [4] Field Details & Stakeholders - Petrobras holds a 65.7% interest in the Atapu field, with partners including TotalEnergies (15%), Shell (16.7%), and others [5] - In the Sépia field, Petrobras has a 55.3% stake, with TotalEnergies, Petronas, QatarEnergy, and Petrogal as partners [5] Production Efficiency - SLB's technology and services are expected to enhance Petrobras' production reliability and efficiency, contributing to Brazil's energy security [6]

Financial Performance - Consolidated revenue in Q1 2025 decreased 23% to $16.1 million compared to $20.9 million in the prior year, driven by a 42% decline in product revenue to $9.2 million [6] - Service revenue increased 38% to $7.0 million due to demand for Sub-Bottom Imager™ and Acoustic Corer™ services [6] - Gross profit increased 8% to $10.1 million, resulting in a gross margin of 62.7% compared to 44.8% in the prior year [6][15] - Adjusted EBITDA decreased 32% to $2.8 million, with an adjusted EBITDA margin of 17.3% compared to 19.6% in the prior year [6][12] Market Outlook - The company expects strong top and bottom-line growth in 2025, supported by robust macro fundamentals in the naval defense market as navies modernize and adopt uncrewed platforms [3] - Anticipated defense RFP activity from 2025 to 2027 is at unprecedented levels, contributing to optimism in the naval defense segment [3] Recent Developments - The company secured nearly $45 million in subsea battery orders and $3 million in orders for Kraken SAS since the end of Q4 [5] - A new manufacturing capacity in Canada is expected to come online by the end of 2025, enhancing the company's ability to meet customer needs in offshore energy and naval defense markets [4] Financial Guidance - The company maintains its 2025 revenue guidance of $120 million to $135 million, representing a 40% growth, and an adjusted EBITDA margin of $26 million to $34 million [7] - Capital expenditures for 2025 are projected to range from $13 million to $17 million, with approximately $10 million allocated for a new subsea power manufacturing facility [8]