Schlumberger Q3 Earnings: Mixed Results As Middle East Shines And Latin America Falters

Schlumberger N.V. (NYSE:SLB) shares are trading lower after the company reported mixed third-quarter results. Revenue grew 10.2% year over year to $9.159 billion, missing the consensus of $9.25 billion.

SLB stated that revenue increased in the Middle East, Asia, and offshore North America but was counterbalanced by a decline in Latin America, with Europe and Africa remaining stable.

Adjusted EPS increased 14% to 89 cents, above the consensus of 88 cents.

Revenue by Division: Digital & Integration $1.09 billion (+11% Y/Y); Reservoir Performance $1.823 billion (+9% Y/Y); Well Construction $3.312 billion (-3% Y/Y), and Production Systems $3.103 billion (+31% Y/Y).

International revenue grew 12% year over year, with growth of 16% in the Middle East & Asia and 16% in Europe & Africa. North American market revenue rose 3%.

Related: SLB Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

“This performance was achieved despite an environment where short-cycle activity growth softened, and some international producers exercised cautious spending triggered by lower oil prices and ample global supply, while land activity in the U.S. remained subdued,” commented SLB CEO Olivier Le Peuch.

Adjusted EBITDA was $2.34 billion for the quarter, an increase of 12.6% Y/Y, and margin expanded 54 bps to 25.6%. The pretax segment operating margin expanded by 51 bps for the quarter to 20.8%.

Operating cash flow for the nine months totaled $4.212 billion compared to $3.615 billion a year ago, and free cash flow was $2.36 billion.

For the quarter, cash flow from operations was $2.45 billion, and free cash flow was $1.81 billion.

Dividend: SLB declared a quarterly cash dividend of $0.275 per share, payable on January 9, 2025, to stockholders of record on December 4, 2024.

Cash and short-term investments stood at $4.462 billion as of September 30. SLB repurchased 11.3 million for $501 million during the quarter.

Additionally, SLB announced a definitive agreement to sell its interests in the Palliser Block located in Alberta, Canada. Deal terms were not disclosed.

Price Action: SLB shares are trading lower by 1.41% at $43.37 premarket at the last check Friday.

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