Schlumberger N.V. Reports Third Quarter 2024 Results" or "Schlumberger N.V. Files Form 10-Q for the Quarter Ended September 30, 2024

Press release · 10/26/2024 04:44

Schlumberger N.V. (Schlumberger Limited) filed its quarterly report for the period ended September 30, 2024. The company reported a net loss of $1.4 billion, or $0.98 per diluted share, compared to a net loss of $1.1 billion, or $0.78 per diluted share, in the same period last year. Revenue decreased by 14% to $5.4 billion, primarily due to lower drilling and completion services revenue. The company’s operating loss was $1.3 billion, compared to an operating loss of $1.1 billion in the same period last year. Schlumberger’s cash and cash equivalents decreased by $1.1 billion to $4.4 billion, and the company had a debt balance of $12.4 billion. The company’s liquidity and capital resources are sufficient to meet its financial obligations and fund its operations.

Overview of SLB’s Financial Performance

SLB, a leading global provider of technology and services to the energy industry, has reported its financial results for the nine months ended September 30, 2024. The company’s revenue increased 12% year-on-year to $27.0 billion, with approximately 50% of the growth coming from the acquisition of the Aker Solutions subsea business in the fourth quarter of 2023.

Revenue and Profit Trends

Digital & Integration revenue grew 10% year-on-year, driven by strong digital revenue growth. However, the division’s pretax operating margin declined 69 basis points due to higher APS amortization expense and lower gas prices.
Reservoir Performance revenue increased 11% year-on-year, primarily due to higher stimulation and intervention activity in the Middle East and Asia. The division’s pretax operating margin expanded 167 basis points.
Well Construction revenue was flat year-on-year, with international growth offset by a decline in North America. The division’s pretax operating margin was essentially flat.
Production Systems revenue grew 30% year-on-year, mainly due to the Aker subsea acquisition. Excluding the acquisition, revenue grew 8%, driven by strong international sales. The division’s pretax operating margin expanded 391 basis points.

Strengths and Weaknesses

Strengths:

Diversified business model with strong performance in Reservoir Performance and Production Systems
Successful integration of the Aker subsea business, contributing to revenue growth
Improved profitability in international markets, driven by higher activity and pricing

Weaknesses:

Decline in Digital & Integration margin due to higher costs
Flat performance in Well Construction, impacted by lower drilling activity in North America

Outlook

SLB expects capital investments for the full year 2024 to be approximately $2.6 billion, the same level as 2023. The company has a strong liquidity position, with $4.5 billion in cash and short-term investments and $5.0 billion in committed debt facility agreements as of September 30, 2024.

The company faces various risks and uncertainties, including changing global economic and geopolitical conditions, fluctuations in oil and gas exploration and production spending, and the ongoing conflict in Ukraine. SLB remains focused on executing its business strategies, improving operational efficiency, and delivering value to its shareholders.