展品99
| 新聞稿 |
|
SLb宣佈2024年第三季度業績
| • | 營業收入爲91.6億美元，與上一季度持平，同比增長10% |
| • | GAAP每股收益爲0.83美元，按季度增長8%，同比增長6% |
| • | 不計入費用和貸項的每股收益爲0.89美元，按季度增長5%，同比增長14% |
| • | 歸屬SLb的淨利潤爲11.9億美元，按季度增長7%，同比增長6% |
| • | 調整後的EBITDA爲23.4億美元，按季度增長2%，同比增長13% |
| • | Cash flow from operations was $2.45 billion and free cash flow was $1.81 billion |
| • | Board approved quarterly cash dividend of $0.275 per share |
NEW YORk, October 18, 2024—SLb (NYSE: SLB) today announced results for the third quarter of 2024.
Third-Quarter Results
| 三個月之內結束 | (Stated in millions, except per share amounts)
變更 | |||||||||||||||
| 9月30日， 2024 |
6月30日， 2024 |
9月30日， 2023 |
環比 | 同比增長 | ||||||||||||
| 營業收入 |
$ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10% | ||||||||
| 稅前收入 - 按照通用會計準則 |
$ | 1,507 | $ | 1,421 | $ | 1,395 | 6% | 8% | ||||||||
| 稅前收入利潤率 - 按照通用會計準則 |
16.5 | % | 15.5 | % | 16.8 | % | 91 點子 | -33 點子 | ||||||||
| 歸屬於SLb的淨利潤 - 按照GAAP標準 |
$ | 1,186 | $ | 1,112 | $ | 1,123 | 7% | 6% | ||||||||
| 攤薄後每股收益 - 按照GAAP標準 |
$ | 0.83 | $ | 0.77 | $ | 0.78 | 8% | 6% | ||||||||
| 調整後的EBITDA* |
$ | 2,343 | $ | 2,288 | $ | 2,081 | 2% | 13% | ||||||||
| 調整後的EBITDA利潤率* |
25.6 | % | 25.0 | % | 25.0 | % | 55 點子 | 54 點子 | ||||||||
| 稅前部門營業收入* |
$ | 1,902 | $ | 1,854 | $ | 1,683 | 3% | 13% | ||||||||
| 稅前部門營業利潤率* |
20.8 | % | 20.3 | % | 20.3 | % | 48 點子 | 51 點子 | ||||||||
| 歸屬於SLb的淨利潤，不包括費用和信貸* |
$ | 1,271 | $ | 1,224 | $ | 1,123 | 4% | 13% | ||||||||
| 攤薄後每股收益，不包括費用和信貸* |
$ | 0.89 | $ | 0.85 | $ | 0.78 | 5% | 14% | ||||||||
| 地理區域營收 |
||||||||||||||||
| 國際 |
$ | 7,425 | $ | 7,452 | $ | 6,614 | — | 12% | ||||||||
| 北美洲 |
1,687 | 1,644 | 1,643 | 3% | 3% | |||||||||||
| 其他 |
47 | 43 | 53 | n/m | n/m | |||||||||||
|
|
|
|
|
|
|
|
| |||||||||
| $ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10% | |||||||||
|
|
|
|
|
|
|
|
| |||||||||
| （以百萬爲單位） | ||||||||||||||||||||
| 三個月之內結束 | 變更 | |||||||||||||||||||
| 九月30日， 2024 |
六月30日， 2024 |
九月30日， 2023 |
環比 | 同比增長 | ||||||||||||||||
| 按部門劃分的營業收入 |
||||||||||||||||||||
| 數字化與整合 |
$ | 1,088 | $ | 1,050 | $ | 982 | 4% | 11% | ||||||||||||
| 儲集效能 |
1,823 | 1,819 | 1,680 | — | 9% | |||||||||||||||
| 井施工 |
3,312 | 3,411 | 3,430 | -3% | -3% | |||||||||||||||
| 生產系統 |
3,103 | 3,025 | 2,367 | 3% | 31% | |||||||||||||||
| 其他 |
(167 | ) | (166 | ) | (149 | ) | n/m | n/m | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 各部門稅前營業收入 |
||||||||||||||||||||
| 數字化與整合 |
$ | 386 | $ | 325 | $ | 314 | 19% | 23% | ||||||||||||
| 儲層性能 |
367 | 376 | 344 | -2% | 7% | |||||||||||||||
| 井施工 |
714 | 742 | 759 | -4% | -6% | |||||||||||||||
| 生產系統 |
519 | 473 | 319 | 10% | 63% | |||||||||||||||
| 其他 |
(84 | ) | (62 | ) | (53 | ) | n/m | n/m | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 1,902 | $ | 1,854 | $ | 1,683 | 3% | 13% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 各部門稅前營業利潤率 |
||||||||||||||||||||
| 數字和整合 |
35.5 | % | 31.0 | % | 32.0 | % | 456 點子 | 353 點子 | ||||||||||||
| 油藏性能 |
20.1 | % | 20.6 | % | 20.5 | % | -53 點子 | -37 點子 | ||||||||||||
| 井施工 |
21.5 | % | 21.7 | % | 22.1 | % | -19 基本點 | -58 基本點 | ||||||||||||
| 生產系統 |
16.7 | % | 15.6 | % | 13.5 | % | 110 基本點 | 325 基本點 | ||||||||||||
| 其他 |
n/m | n/m | n/m | n/m | n/m | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 20.8 | % | 20.3 | % | 20.3 | % | 48 點子 | 51 點子 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
SLb在2023年第四季度收購了Aker海底業務，與OneSubsea創業公司形成合資公司。在2024年第三季度，收購的業務產生了5.32億美元的營業收入。除了這次收購的影響，SLB的全球2024年第三季度營業收入同比增長了4％；2024年第三季度國際營業收入同比增長了4％；而生產系統的2024年第三季度營業收入同比增長了9％。
| * | 這些是 非GAAP 財務指標。請參閱標題爲「部門」和「補充信息」的部分，以了解詳細信息。 |
n/m = 不具有意義
儘管宏觀環境謹慎，SLb擴大邊界和盈利。
「SLb取得了強勁的第三季度業績，實現了盈利增長和邊際擴張，與我們全年調整後的EBITDA邊際目標爲25%或更高的一致，」 SLb首席執行官Olivier Le Peuch表示。「這些結果得益於我們的持續關注成本優化，更多采用我們的數字產品和解決方案，以及在深水和燃氣領域長週期項目的貢獻。」
「儘管短週期活動增長放緩，一些國際生產商由於油價下跌和全球供應充裕而行使謹慎支出，美國陸地活動保持低迷的環境下，SLb仍取得了這樣的業績。收入在中東和亞洲以及北美近海增長，但拉丁美洲下降，而歐洲和非洲保持穩定，」 Le Peuch說。
隨着客戶專注於雲計算和自動化，數字化引領業績
“隨着我們繼續看到數字技術對整個行業的變革性影響，我們的數字與整合業務連續增長了4％ 收入。這是由我們的數字業務推動的，該業務連續增長7％，同比增長25％。數字與整合板塊稅前營業利潤率連續增長456個點子（點子），這主要是由我們的數字業務推動的。
“我們的客戶越來越多地採用數字技術來縮短規劃週期、提高自動化和提取效率。我們基於雲的 平台產品已成爲在整個能源價值鏈中解鎖數據和人工智能的不可或缺的工具，從而實現數據驅動的決策和簡化運營。我們在這一領域的領導能力得到了充分體現，我們歡迎了超過 9月，1,000名客戶和合作夥伴將參加SLb數字論壇，分享進展，共同創新，探索新的數字機遇。
“在活動中， 我們宣佈了與NVIDIA、亞馬遜網絡服務、阿美和其他公司的激動人心的新合作和合作夥伴關係。此外，我們還推出了 Lumi™ 數據和 AI 平台，它集成了 先進的人工智能功能，包括生成式人工智能，其工作流程貫穿整個能源價值鏈。更多細節可以在本新聞稿的季度要點中找到。
「在包括儲層性能、油井建設和生產系統在內的核心部門中，收入連續基本持平。製作 系統收入連續增長3％，創下了創紀錄的季度收入，稅前分部的營業利潤率連續第九個季度同比增長。儲層績效收入連續持平，而油井施工 由於鑽探活動減少，收入下降了3％。」 Le Peuch說。
憑藉強勁的現金流，SlB加快了股東的回報
“總體而言，在第三季度，我們實現了調整後的息稅折舊攤銷前利潤率爲25.6％， 55 個點子 連續增加。現金流來自 運營額爲24.5億美元，自由現金流爲18.1億美元。此外，我們通過股票回購和分紅向股東返還了近9億美元，爲股東帶來了前九年的總回報 一年中的幾個月達到23.8億美元。
“憑藉強勁的現金流和對持續強勁現金流產生的可見性，我們加快了份額 回購計劃，利用當前的股價水平。我們現在預計將超過今年早些時候作出的30億美元股東回報承諾。
「我要感謝SlB團隊堅定不移的奉獻精神和出色的執行力，始終如一地爲我們的客戶和客戶提供服務 股東，」 勒佩奇說。
國際、數位化和成本最佳化仍保持焦點
「儘管在商品價格下降的情況下，部分客戶對近期資本支出和自願性支出採用了更謹慎的方法，但大多數 項目正如計劃進行。最近的地緣政治事件進一步強調了長期能源安全和減少潛在供應中斷的重要性。
「SLB 在國際、深水和天然氣領域的長週期項目獨一無二的投資能力來應付不斷演變的市場條件，具有良好的位置。 市場。此外，SLB 在新興領域的數位領導地位和不斷增長的業務 低碳 市場（例如碳捕獲和儲存和地熱）正在支持更平衡的投資組合。
「儘管由於宏觀環境，上游支出增長率在過去幾個月中有所緩和，但我們仍然預期持續水平 未來幾年的上游投資。在這種情況下，我們預計能夠帶來強勁的現金流量和全年調整後的 EBITDA 保證金額達 25% 或以上，這將獲得我們的國際領導地位、強大的數位銷售和持續成本的支持 優化措施。
「總體而言，我們的業務仍然有良好地位，可以進一步擴大利潤率和提高股東回報，」Le 佩奇說。
其他活動
在季度內，瑞銀回購 其普通股的 11.3 萬股，總購買價為 501 億美元。今年首九個月，瑞銀回購總共 26.6 萬股其普通股，總購買價為 1.24 億美元
2024 年 10 月 17 日，SlB 簽訂了一項確定協議，出售其位於亞伯達省的帕利瑟區的營運權益。 加拿大該交易需要監管機構批准和其他常規收市條件，預計將在 2024 年第四季末完成。
二零二四年十月十七日，瑞銀董事會通過一月九日派發季度現金股息為每股 0.275 美元的現金股息。 2025 年，給 2024 年 12 月 4 日的歷史記錄股東。
按地區劃分的第三季度收入
| （以 mi 表示l獅子) | ||||||||||||||||||||
| 三個月結束 | 變更 | |||||||||||||||||||
| 九月三十日 2024 |
六月三十日 2024 |
九月三十日 2023 |
循序 | 按年 | ||||||||||||||||
| 北美 |
$ | 1,687 | $ | 1,644 | $ | 1,643 | 3 | % | 3 | % | ||||||||||
| 拉丁美洲 |
1,689 | 1,742 | 1,681 | -3 | % | — | ||||||||||||||
| 歐洲及非洲 * |
2,434 | 2,442 | 2,091 | — | 16 | % | ||||||||||||||
| 中東及亞洲 |
3,302 | 3,268 | 2,842 | 1 | % | 16 | % | |||||||||||||
| 消除和其他 |
47 | 43 | 53 | 不適用 | 不適用 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 9,159 | $ | 9,139 | $ | 8,310 | — | 10 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 國際 |
$ | 7,425 | $ | 7,452 | $ | 6,614 | — | 12 | % | |||||||||||
| 北美 |
$ | 1,687 | $ | 1,644 | $ | 1,643 | 3 | % | 3 | % | ||||||||||
SlB 於 2023 年第四季收購 Aker 海底業務，與成立歐納海合資企業有關。 收購的業務在 2024 年第三季度產生了 5.32 億美元的收入。不包括此次收購的影響，SLB 2024 年第三季全球收入同比增長 4%，2024 年第三季國際收入 按年增長 4%。
| * | 包括俄羅斯和哈斯比亞地區 |
| 不適用 | = 沒有意義 |
國際
收入在 拉丁美洲 為 1.69 億美元 連續下跌 3%，反映了巴西的生產系統銷量下降，以及墨西哥和圭亞那的鑽井活動減少。由於阿根廷的活動強勁和巴西的生產系統銷售量上升，因此收入同比一年平衡 被墨西哥的鑽井活動下降所抵消。
歐洲與非洲 由於銷售額上升，收入 2.44 億美元連續不變 北非人工升降機受到斯堪的納維亞海底生產系統銷售減少，以及減少了鑽孔、干預和刺激活動的抵消了 撒哈拉以南 非洲一年一年， 由於收購的 Aker 海底業務，主要在斯堪的納維亞，以及在北非的鑽井、干預和刺激活動增加的推動收入增加 16%。
收入在 中東& 亞洲 澳大利亞的生產系統銷售額為 3.30 億美元，連續增長 1%， 沙特阿拉伯、伊拉克、科威特和卡塔爾，以及東亞和阿拉伯聯合酋長國的鑽井增加，抵消了埃及和印度的表現較弱。由於刺激、干預和評估活動更高，收入按年增長 16%。 以及在沙特阿拉伯，阿聯酋，伊拉克，科威特，卡塔爾和阿曼的生產系統銷售增加。在東亞和印度尼西亞的鑽井增加以及收購 Aker 在澳大利亞的海底業務也有助於 按年 成長。
北美洲
北美 營業收入1.69億美元，由於在美國墨西哥灣生產系統銷售強勁且加拿大陸地鑽探增加，按季增長3％，部分抵消美國陸地鑽探收入減少。年度營業收入增長3％，由於深海生產系統銷售增加以及美國墨西哥灣的評估和刺激活動增加，部分抵消美國陸地鑽探收入減少。
按部門劃分的第三季度業績
數位與整合
| (以百萬美元計) | ||||||||||||||||||||
| 結束於三個月的期間 | 變化 | |||||||||||||||||||
| 9月30日, 2024 |
六月30日, 2024 |
9月30日, 2023 |
按期比較 |
年度對比 | ||||||||||||||||
| 營業收入 |
||||||||||||||||||||
| 國際 |
$ | 830 | $ | 757 | $ | 737 | 10% | 13% | ||||||||||||
| 北美 |
258 | 291 | 242 | -11% | 6% | |||||||||||||||
| 其他 |
— | 2 | 3 | n/m | n/m | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 1,088 | $ | 1,050 | $ | 982 | 4% | 11% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 稅前營業收入 |
$ | 386 | $ | 325 | $ | 314 | 19% | 23% | ||||||||||||
| 稅前營業利潤率 |
35.5 | % | 31.0 | % | 32.0 | % | 456 基本點 | 353 基本點 | ||||||||||||
n/m = 不具涵義
數位及整合營業收入為10.9億美元，按季增長4%，主要因數位營收增加，而Asset Performance Solutions (APS) 的營業收入持平。數位營收按季增長7%，主要受到國際上對我們的雲端、人工智能和邊緣科技平台採納增加的推動。年度營收增長11%，主要因數位增長25%，而APS 營收下降3%。
數位及整合稅前營業利潤率為36%，按季擴大456個基本點，主要是因數位中的盈利能力提高，隨著數位產品和解決方案的使用率提高以及成本效益提升。年度營業利潤率因數位的盈利能力增加擴大了353個基本點，部分抵銷了由於較高攤提開支和較低燃料幣價格影響而導致APS的盈利能力下降。
水庫性能
| (以百萬計) | ||||||||||||||||||||
| 結束於三個月的期間 | 變化 | |||||||||||||||||||
| 9月30日, 2024 |
6月30日, 2024 |
9月30日, 2023 |
按期比較 | 年度同比 | ||||||||||||||||
| 營業收入 |
||||||||||||||||||||
| 國際 |
$ | 1,676 | $ | 1,684 | $ | 1,554 | — | 8% | ||||||||||||
| 北美 |
145 | 134 | 125 | 8% | 16% | |||||||||||||||
| 其他 |
2 | 1 | 1 | n/m | n/m | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 1,823 | $ | 1,819 | $ | 1,680 | — | 9% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 稅前營業收入 |
$ | 367 | $ | 376 | $ | 344 | -2% | 7% | ||||||||||||
| 稅前營業利潤率 |
20.1 | % | 20.6 | % | 20.5 | % | -53 基點 | -37 基點 | ||||||||||||
n/m = 無實際意義
Reservoir Performance的營業收入為18.2億美元，對比上季持平，因較高的干預活動被較低的評估活動抵消，而刺激營業收入保持不變。從地理上看，海上北美和拉丁美洲的收入增長，部分抵消了歐洲和非洲以及中東和亞洲的下降。年同比，由於刺激和干預活動增加，收入增加了9%，部分抵消了較低的評估收入。
Reservoir Performance的稅前營業利潤率為20%，對比上季下降了53個基點，主要是由於評估利潤下降，部分抵消了干預利潤的改善。年同比，由於技術組合不利，稅前營業利潤率下降了37個基點。
井施工
| (以百萬計) |
||||||||||||||||||||
| 結束於三個月的期間 | 變化 | |||||||||||||||||||
| 9月30日， 2024 |
6月30日， 2024 |
9月30日， 2023 |
按期比較 | 同比 | ||||||||||||||||
| 營業收入 |
||||||||||||||||||||
| 國際 |
$ | 2,675 | $ | 2,768 | $ | 2,707 | -3% | -1% | ||||||||||||
| 北美 |
581 | 592 | 663 | -2% | -12% | |||||||||||||||
| 其他 |
56 | 51 | 60 | n/m | n/m | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 3,312 | $ | 3,411 | $ | 3,430 | -3% | -3% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 稅前營業收入 |
$ | 714 | $ | 742 | $ | 759 | -4% | -6% | ||||||||||||
| 稅前營業利潤率 |
21.5 | % | 21.7 | % | 22.1 | % | -19 基點 | -58 基點 | ||||||||||||
n/m = 不具意義
總營業收入為 33.1 億美元，按季度和年同比均下降 3％，主要由於拉丁美洲、美國陸地和沙特阿拉伯的施工收入下降。這是由於拉丁美洲、美國陸地和沙特阿拉伯的鑽井活動減少所驅動的。
施工業務的稅前營業利潤率為22%，由於北美和國際市場活動減少，較上季度下降19個基點，較去年同期下降58個基點。
生產系統
| （單位：百萬） | ||||||||||||||||||||
| 結束於三個月的期間 | 變化 | |||||||||||||||||||
| 9月30日， 2024 |
六月30日, 2024 |
9月30日， 2023 |
按期比較 | Year-on-year | ||||||||||||||||
| 營業收入 |
||||||||||||||||||||
| 國際 |
$ | 2,373 | $ | 2,378 | $ | 1,740 | — | 36% | ||||||||||||
| 北美 |
723 | 640 | 626 | 13% | 15% | |||||||||||||||
| 其他 |
7 | 7 | 1 | n/m | n/m | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 3,103 | $ | 3,025 | $ | 2,367 | 3% | 31% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 稅前營業收入 |
$ | 519 | $ | 473 | $ | 319 | 10% | 63% | ||||||||||||
| 稅前營業利潤率 |
16.7 | % | 15.6 | % | 13.5 | % | 110個基準點 | 325個基準點 | ||||||||||||
SLb於2023年第四季收購Aker海床業務，進而形成OneSubsea合資企業。 這筆收購業務於2024年第三季產生了53200萬美元的營業收入。除去這次收購的影響，2024年第三季生產系統的營業收入同比增長了9%。
n/m = 無意義
生產系統的營業收入為31億美元，環比增長3% 增長主要來自銷售表面生產系統、完井和人工提升設備的增加，部分抵銷了海底和中遊生產系統的銷量下降。同比增長31%，主要是因為收購了Aker海床業務，以及整個組合產品在國際市場表現強勁。
生產系統的稅前營業利潤率為17%，環比增加110個基準點 表面生產系統、完井和人工提升的利潤率有所改善。同比增長325個基準點，主要是因為表面生產系統、人工提升和閥門的利潤率提升。
Quarterly Highlights
CORE
Contract Awards
SLB continues to win new contract awards that align with SLB’s strengths in the Core, particularly in the international and offshore basins. Notable highlights include the following:
| • | In the UAE, SLB, ADNOC Drilling Company, and Patterson-UTI announced the formation of the Turnwell Industries LLC OPC joint venture (JV). The JV will focus on the acceleration of UAE’s unconventional oil and gas program, with an initial 144 wells scheduled for completion by the end of 2025. SLB will provide integrated drilling, stimulation, and completion services, as well as project management, digital capabilities, and subsurface support. |
| • | In Kuwait, Kuwait Oil Company (KOC) has awarded SLB a lump sum turnkey (LSTK) drilling contract to drill and deliver wells in south and east Kuwait. SLB will manage the planning, construction, and drilling of 141 wells over a period of three years. This LSTK contract will enable improved efficiency and faster deployment of technologies. |
| • | In Oman, Shell Development Oman LLC has awarded SLB a two-year integrated well construction contract covering up to 23 wells in Block 10 and Block 11 with the potential to extend an additional three years. SLB will provide bits and drilling tools, cementing, drilling fluids, drilling services, and mud logging. |
| • | In the North Sea, bp awarded SLB OneSubsea™ and Subsea7 an integrated engineering, procurement, construction, and installation contract for the Murlach development (formerly Skua Field), 240 kilometers east of Aberdeen in the U.K. North Sea. The Murlach project will include the first-ever implementation of SLB OneSubsea standard, configurable vertical monobore tree systems in the U.K. North Sea, which will be deployed by Subsea7 via vessel to reduce rig days. |
| • | In Brazil, Petrobras awarded SLB OneSubsea a major contract for two ultradeepwater projects. The contract covers standardized presalt subsea production systems and services to develop the Atapu and Sepia oil fields in the Santos Basin. SLB OneSubsea will supply Petrobras-standard configured presalt vertical trees, subsea distribution units, control systems, and pipeline systems, along with related installation, commissioning, and life-of-field services. These projects will add to Petrobras’ presalt investments and enable Petrobras to add two new FPSO platforms, each with a daily capacity of 225,000 barrels of oil and 10 million cubic meters of gas. |
| • | Also in Brazil, Equinor awarded SLB a contract for the deepwater development of the Raia Project with first oil expected in 2028. SLB will provide directional drilling services, fluids, cementing, and logging and completion tools for six wells. The area contains a recoverable volume of natural gas and oil condensate of more than 1 billion barrels of oil equivalent. |
| • | Also in Brazil, Petrobras awarded SLB a 10-year contract for the delivery of encapsulated submersible pump services for up to 200 systems in Bahia state. This performance-based contract underscores the reliability and excellence of SLB equipment and services. |
| • | Offshore Norway, Equinor awarded SLB a multiyear integrated drilling and reservoir evaluation contract spanning a wide range of operations. This includes integrated drilling and wireline services for an exploration drilling campaign on the Norwegian continental shelf; IriSphere™ look-ahead-while-drilling service for Stage II of the Troll Phase 3 project; wireline services for an exploration drilling campaign in the Barents Sea; and drilling and wireline services in the Irpa subsea development to create a tieback that extends the lifespan of Aasta Hansteen Field. Work for this integrated-domain contract will begin in 2025. |
| • | In Namibia, an operator awarded SLB a three-year integrated contract for well construction and reservoir characterization services. This contract includes the utilization of the SLB Ora™ intelligent wireline formation testing platform. |
Technology and Innovation
Notable technology introductions and deployment in the quarter include the following:
| • | In the U.S., ExxonMobil and SLB collaborated on the longest well section in the Permian Basin, delivering the first-ever four-mile well in the Second Bone Spring formation. Utilizing SLB’s PowerDrive Orbit G2™ rotary steerable system with a ruggedized pad design, the single-run lateral was achieved by steering at a complex high angle in harsh downhole conditions. This approach also led to a significant reduction in drilling time, releasing the well in 16.4 days. |
| • | In Kuwait, SLB and KOC implemented an advanced well intervention workflow, integrating distributed temperature sensing, 3D far-field sonic service, and production logging tools. Deploying ACTive™ real-time downhole coiled tubing services, SLB provided detailed reservoir insights and enabled the precise deployment of engineered stimulation fluids. This intervention identified a critical thief zone, mapped the surrounding microfractures, and improved water intake patterns, ultimately resulting in an increase of 200 barrels of oil per day from four nearby wells. One previously shut-in well achieved 1,800 barrels of oil per day postintervention. Based on this success, KOC has approved the expansion of this workflow across the Sabriyah Mauddud flank, with four additional wells slated for similar interventions. |
| • | In Angola, SLB and TotalEnergies deployed the first offshore application of OneSTEP EF™ efficient, low-risk sandstone stimulation solution in the Canela Field. The candidate well, situated in asandstone reservoir, faced multiple damage mechanisms, including mudcake, lost circulation material, organic deposits, silt, clay, and fines migration. After deploying the solution, the well’s flow rate increased by 250% and has become TotalEnergies’ top producing well in Angola. |
Decarbonization
SLB is focused on developing and implementing technologies that can reduce emissions and environmental impact with practical, quantifiably proven solutions. Highlights include the following:
| • | In the U.S., SLB OneSubsea has signed a memorandum of understanding with C-Power to explore the use of converted energy from ocean waves as a lower-cost, lower-carbon power source for subsea energy applications. The joint industry project, cosponsored by the U.S. Department of Energy, will be conducted by SLB OneSubsea in collaboration with its Integration Alliance partner, Subsea7. |
| • | In Norway, SLB and Equinor successfully deployed the world’s first offshore electric-powered light-string coiled tubing package. This innovative package was designed together with Equinor to bridge the gap between conventional offshore wireline and coiled tubing capabilities. When compared with the traditional coiled tubing package, the light-string package requires 48% less rig floor footprint, 33% fewer personnel on board, and up to 75% less rig-up and rig-down time. In its first job, the light-string coiled tubing package performed a downhole cleanout operation 75% faster than would have been possible with conventional wireline. |
DIGITAL
SLB is deploying digital technology at scale, partnering with customers to migrate their technology and workflows into the cloud, to embrace new AI-enabled capabilities, and to leverage insights to elevate their performance. Notable highlights include the following:
| • | SLB launched the Lumi data and AI platform, which integrates advanced AI capabilities—including generative AI—with workflows across the energy value chain. The open, secure, and modular platform unlocks access to high-quality data across subsurface, surface, planning, and operations, increasing cross-domain collaboration and releasing new intelligence and insights to improve the quality and speed of decision-making at the enterprise level. |
| • | SLB and NVIDIA announced that they will build on their long-standing collaboration to develop generative AI solutions for the energy industry. Working together, the companies will build and optimize models to the specific needs and requirements of the data-intensive energy industry, including subsurface exploration, production operations, and data management. The collaboration accelerates the development and deployment of industry-specific generative AI models across SLB’s global platforms, including its Delfi™ digital platform and Lumi data and AI platform. |
| • | SLB and Amazon Web Services (AWS) announced an extended partnership to expand access to applications from the Delfi digital platform. Energy Data Insights from AWS will also offer compatibility with SLB’s new Lumi data and AI platform. SLB and Amazon have also entered into a multiyear strategic framework agreement to explore the deployment of low-carbon technologies. |
| • | SLB and Palo Alto Networks announced an expanded collaboration to strengthen cybersecurity for the energy sector. The companies will combine SLB’s cloud and edge technologies and domain expertise in the energy industry with Palo Alto Networks’ cross-industry, platform-based cybersecurity solutions. This will not only help SLB remain on the forefront with its own security infrastructure but will also help drive future enhanced solutions to address evolving cyber threats as the industry’s adoption of digital solutions and artificial intelligence accelerates. |
| • | SLB and Aramco have signed an agreement with the aim of codeveloping, commercializing, and utilizing digital solutions to help mitigate greenhouse gas emissions in industrial sectors. The agreement establishes |
| a framework for the development of several digital solutions on SLB’s digital sustainability platform that will enable industrial companies to accelerate their progress toward net zero by more easily measuring, reporting, and verifying their emissions. |
| • | In Australia, Woodside Energy has awarded SLB a three-year digital frame agreement, which incorporates global subsurface data management, software provisioning, Delfi on-demand reservoir simulation, and onsite support services. SLB will help Woodside Energy to standardize an enterprise-scale data management solution, while also providing a full suite of software products and compute scalability via the Delfi platform for reservoir simulations. |
NEW ENERGY
SLB continues to participate in the global transition to low-carbon energy systems through innovative technology and strategic partnerships, including the following:
| • | In Nevada, SLB achieved breakthrough results in sustainable lithium production. Using a proprietary integrated solution that combines SLB’s subsurface expertise with surface engineering of advanced technologies that include direct lithium extraction (DLE), SLB was able to produce lithium at a rate 500 times faster than conventional methods while using only 10% of the land. The plant reached a verified recovery rate of 96% lithium from brine while using significantly less water, energy, and fewer chemical reagents in comparison with other lithium mining techniques. |
| • | In the U.S., SLB Capturi™, the newly formed joint venture between SLB and Aker Carbon Capture, was awarded a contract by CO280 Solutions for front end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the U.S. Gulf Coast. The project, which aims to remove 800,000 metric tons of carbon emissions annually, will also deliver permanent, verifiable, and affordable carbon dioxide removals (CDRs). This follows recent announcements by SLB Capturi and CO280 on their collaboration to develop large-scale CDR projects in the U.S. and Canada pulp and paper industries and their collaboration with Microsoft® to scale the full value chain of carbon removal. |
| • | Also in the U.S., SLB Capturi has secured funding from the U.S. Department of Energy’s Office of Clean Energy Demonstrations for the first phase of two carbon capture projects. These projects, which commenced in August 2024 with a FEED study, involve deploying carbon capture systems at Basin Electric’s Dry Fork Station in Wyoming and International Paper’s Vicksburg Containerboard Mill in Mississippi. The projects are undertaken in partnership with TDA Research for the Wyoming project and with RTI International, International Paper, and Amazon, for the Mississippi project. The combined aim of these projects is to capture 278,000 metric tons of CO2 annually, demonstrating the potential of early-stage carbon capture technologies for achieving significant emissions reductions. |
| • | In Norway, SLB launched a well integrity assessment solution that simplifies carbon storage site selection and evaluation by quantifying well integrity risks in mature or retired oil and gas fields. SLB’s solution incorporates advanced failure mode, effects, and criticality analysis to assess potential leakage pathways, well barriers, failure mechanisms, and resulting consequences; helping customers understand the risks associated with each well, inform remediation strategies, and, ultimately, estimate project viability. |
FINANCIAL TABLES
Condensed Consolidated Statement of Income
| (Stated in millions, except per share amounts) | ||||||||||||||||
| Third Quarter | Nine Months | |||||||||||||||
| Periods Ended September 30, |
2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue |
$ | 9,159 | $ | 8,310 | $ | 27,005 | $ | 24,145 | ||||||||
| Interest & other income (1) |
96 | 73 | 265 | 247 | ||||||||||||
| Expenses |
||||||||||||||||
| Cost of revenue (1) |
7,237 | 6,592 | 21,506 | 19,378 | ||||||||||||
| Research & engineering |
187 | 186 | 557 | 524 | ||||||||||||
| General & administrative |
90 | 81 | 305 | 268 | ||||||||||||
| Merger & integration (1) |
33 | — | 60 | — | ||||||||||||
| Restructuring (1) |
65 | — | 176 | — | ||||||||||||
| Interest |
136 | 129 | 381 | 373 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before taxes (1) |
$ | 1,507 | $ | 1,395 | $ | 4,285 | $ | 3,849 | ||||||||
| Tax expense (1) |
289 | 259 | 824 | 722 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (1) |
$ | 1,218 | $ | 1,136 | $ | 3,461 | $ | 3,127 | ||||||||
| Net income attributable to noncontrolling interests (1) |
32 | 13 | 95 | 36 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to SLB (1) |
$ | 1,186 | $ | 1,123 | $ | 3,366 | $ | 3,091 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted earnings per share of SLB (1) |
$ | 0.83 | $ | 0.78 | $ | 2.34 | $ | 2.14 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Average shares outstanding |
1,417 | 1,424 | 1,425 | 1,424 | ||||||||||||
| Average shares outstanding assuming dilution |
1,432 | 1,442 | 1,441 | 1,442 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Depreciation & amortization included in expenses (2) |
$ | 640 | $ | 579 | $ | 1,871 | $ | 1,703 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | See section entitled “Charges & Credits” for details. |
| (2) | Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments. |
Condensed Consolidated Balance Sheet
| (Stated in millions) | ||||||||
| Assets |
Sept. 30, 2024 |
Dec. 31, 2023 |
||||||
| Current Assets |
||||||||
| Cash and short-term investments |
$ | 4,462 | $ | 3,989 | ||||
| Receivables |
8,260 | 7,812 | ||||||
| Inventories |
4,573 | 4,387 | ||||||
| Other current assets |
1,506 | 1,530 | ||||||
|
|
|
|
|
|||||
| 18,801 | 17,718 | |||||||
| Investment in affiliated companies |
1,744 | 1,624 | ||||||
| Fixed assets |
7,360 | 7,240 | ||||||
| Goodwill |
14,559 | 14,084 | ||||||
| Intangible assets |
3,122 | 3,239 | ||||||
| Other assets |
4,189 | 4,052 | ||||||
|
|
|
|
|
|||||
| $ | 49,775 | $ | 47,957 | |||||
|
|
|
|
|
|||||
| Liabilities and Equity |
||||||||
| Current Liabilities |
||||||||
| Accounts payable and accrued liabilities |
$ | 10,346 | $ | 10,904 | ||||
| Estimated liability for taxes on income |
888 | 994 | ||||||
| Short-term borrowings and current portion of long-term debt |
1,059 | 1,123 | ||||||
| Dividends payable |
406 | 374 | ||||||
|
|
|
|
|
|||||
| 12,699 | 13,395 | |||||||
| Long-term debt |
11,864 | 10,842 | ||||||
| Other liabilities |
2,484 | 2,361 | ||||||
|
|
|
|
|
|||||
| 27,047 | 26,598 | |||||||
| Equity |
22,728 | 21,359 | ||||||
|
|
|
|
|
|||||
| $ | 49,775 | $ | 47,957 | |||||
|
|
|
|
|
|||||
Liquidity
| (Stated in millions) |
||||||||||||||||
| Components of Liquidity |
Sept. 30, 2024 |
Jun. 30, 2024 |
Sept. 30, 2023 |
Dec. 31, 2023 |
||||||||||||
| Cash and short-term investments |
$ | 4,462 | $ | 4,003 | $ | 3,735 | $ | 3,989 | ||||||||
| Short-term borrowings and current portion of long-term debt |
(1,059 | ) | (1,033 | ) | (1,998 | ) | (1,123 | ) | ||||||||
| Long-term debt |
(11,864 | ) | (12,156 | ) | (11,147 | ) | (10,842 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Debt(1) |
$ | (8,461 | ) | $ | (9,186 | ) | $ | (9,410 | ) | $ | (7,976 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
Details of changes in liquidity follow:
| Periods Ended September 30, |
Nine Months 2024 |
Third Quarter 2024 |
Nine Months 2023 |
|||||||||
| Net income |
$ | 3,461 | $ | 1,218 | $ | 3,127 | ||||||
| Charges and credits, net of tax (2) |
231 | 92 | (28 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| 3,692 | 1,310 | 3,099 | ||||||||||
| Depreciation and amortization (3) |
1,871 | 640 | 1,703 | |||||||||
| Stock-based compensation expense |
244 | 71 | 218 | |||||||||
| Change in working capital |
(1,731 | ) | 313 | (1,353 | ) | |||||||
| Other |
136 | 115 | (52 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Cash flow from operations |
4,212 | 2,449 | 3,615 | |||||||||
|
|
|
|
|
|
|
|||||||
| Capital expenditures |
(1,322 | ) | (460 | ) | (1,345 | ) | ||||||
| APS investments |
(390 | ) | (134 | ) | (391 | ) | ||||||
| Exploration data capitalized |
(141 | ) | (50 | ) | (121 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Free cash flow (4) |
2,359 | 1,805 | 1,758 | |||||||||
|
|
|
|
|
|
|
|||||||
| Dividends paid |
(1,144 | ) | (393 | ) | (961 | ) | ||||||
| Stock repurchase program |
(1,236 | ) | (501 | ) | (594 | ) | ||||||
| Proceeds from employee stock plans |
244 | 124 | 276 | |||||||||
| Business acquisitions and investments, net of cash acquired |
(552 | ) | (47 | ) | (280 | ) | ||||||
| Purchases of Blue Chip Swap securities |
(136 | ) | (60 | ) | (169 | ) | ||||||
| Proceeds from sale of Blue Chip Swap securities |
92 | 41 | 91 | |||||||||
| Proceeds from sale of Liberty shares |
— | — | 137 | |||||||||
| Taxes paid on net settled stock-based compensation awards |
(86 | ) | (8 | ) | (162 | ) | ||||||
| Other |
27 | (12 | ) | (194 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| (Increase) decrease in net debt before impact of changes in foreign exchange rates |
(432 | ) | 949 | (98 | ) | |||||||
| Impact of changes in foreign exchange rates on net debt |
(53 | ) | (224 | ) | 20 | |||||||
|
|
|
|
|
|
|
|||||||
| (Increase) decrease in Net Debt |
(485 | ) | 725 | (78 | ) | |||||||
| Net Debt, beginning of period |
(7,976 | ) | (9,186 | ) | (9,332 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net Debt, end of period |
$ | (8,461 | ) | $ | (8,461 | ) | $ | (9,410 | ) | |||
|
|
|
|
|
|
|
|||||||
| (1) | “Net Debt” represents gross debt less cash and short-term investments. Management believes that Net Debt provides useful information to investors and management regarding the level of SLB’s indebtedness by reflecting cash and investments that could be used to repay debt. Net Debt is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, total debt. |
| (2) | See section entitled “Charges & Credits” for details. |
| (3) | Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments. |
| (4) | “Free cash flow” represents cash flow from operations less capital expenditures, APS investments, and exploration data costs capitalized. Management believes that free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of SLB’s ability to generate cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. Free cash flow does not represent the residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations. |
Charges & Credits
In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), this third-quarter 2024 earnings release also includes non-GAAP financial measures (as defined under the SEC’s Regulation G). In addition to the non-GAAP financial measures discussed under “Liquidity”, SLB net income, excluding charges & credits, as well as measures derived from it (including diluted EPS, excluding charges & credits; effective tax rate, excluding charges & credits; adjusted EBITDA and adjusted EBITDA margin) are non-GAAP financial measures. Management believes that the exclusion of charges & credits from these financial measures provide useful perspective on SLB’s underlying business results and operating trends, and a means to evaluate SLB’s operations period over period. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of certain of these non-GAAP measures to the comparable GAAP measures. For a reconciliation of adjusted EBITDA to the comparable GAAP measure, please refer to the section titled “Supplementary Information” (Question 9).
| (Stated in millions, except per share amounts) | ||||||||||||||||||||
| Third Quarter 2024 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 1,507 | $ | 289 | $ | 32 | $ | 1,186 | $ | 0.83 | ||||||||||
| Restructuring (1) |
65 | 10 | — | 55 | 0.04 | |||||||||||||||
| Merger & integration (2) |
47 | 10 | 7 | 30 | 0.02 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| SLB net income, excluding charges & credits |
$ | 1,619 | $ | 309 | $ | 39 | $ | 1,271 | $ | 0.89 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Second Quarter 2024 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 1,421 | $ | 276 | $ | 33 | $ | 1,112 | $ | 0.77 | ||||||||||
| Restructuring (1) |
111 | 17 | — | 94 | 0.07 | |||||||||||||||
| Merger & integration (2) |
31 | 5 | 8 | 18 | 0.01 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| SLB net income, excluding charges & credits |
$ | 1,563 | $ | 298 | $ | 41 | $ | 1,224 | $ | 0.85 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nine Months 2024 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 4,285 | $ | 824 | $ | 95 | $ | 3,366 | $ | 2.34 | ||||||||||
| Restructuring (1) |
176 | 27 | — | 149 | 0.10 | |||||||||||||||
| Merger & integration (3) |
103 | 21 | 20 | 62 | 0.04 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| SLB net income, excluding charges & credits |
$ | 4,564 | $ | 872 | $ | 115 | $ | 3,577 | $ | 2.48 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nine Months 2023 | ||||||||||||||||||||
| Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||||||||||||
| SLB net income (GAAP basis) |
$ | 3,849 | $ | 722 | $ | 36 | $ | 3,091 | $ | 2.14 | ||||||||||
| Gain on sale of Liberty shares (4) |
(36 | ) | (8 | ) | — | (28 | ) | (0.02 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| SLB net income, excluding charges & credits |
$ | 3,813 | $ | 714 | $ | 36 | $ | 3,063 | $ | 2.12 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | Classified in Restructuring in the Condensed Consolidated Statement of Income. |
| (2) | During the third quarter of 2024, $14 million of these charges were classified in Cost of revenue in the Condensed Consolidation Statement of Income with the remaining $33 million classified in Merger & integration. During the second quarter of 2024, $15 million of these charges were classified in Cost of revenue with the remaining $16 million classified in Merger & integration. |
| (3) | During the nine months of 2024, $43 million of these charges were classified in Cost of Revenue in the Condensed Consolidation Statement of Income with the remaining $60 million classified in Merger & integration. |
| (4) | Classified in Interest & other income in the Condensed Consolidated Statement of Income. |
There were no charges or credits during the third quarter of 2023.
Divisions
| (Stated in millions) | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| Sept. 30, 2024 | Jun. 30, 2024 | Sept. 30, 2023 | ||||||||||||||||||||||
| Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
|||||||||||||||||||
| Digital & Integration |
$ | 1,088 | $ | 386 | $ | 1,050 | $ | 325 | $ | 982 | $ | 314 | ||||||||||||
| Reservoir Performance |
1,823 | 367 | 1,819 | 376 | 1,680 | 344 | ||||||||||||||||||
| Well Construction |
3,312 | 714 | 3,411 | 742 | 3,430 | 759 | ||||||||||||||||||
| Production Systems |
3,103 | 519 | 3,025 | 473 | 2,367 | 319 | ||||||||||||||||||
| Eliminations & other |
(167 | ) | (84 | ) | (166 | ) | (62 | ) | (149 | ) | (53 | ) | ||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Pretax segment operating income |
1,902 | 1,854 | 1,683 | |||||||||||||||||||||
| Corporate & other |
(187 | ) | (191 | ) | (182 | ) | ||||||||||||||||||
| Interest income(1) |
36 | 29 | 20 | |||||||||||||||||||||
| Interest expense(1) |
(132 | ) | (129 | ) | (126 | ) | ||||||||||||||||||
| Charges & credits(2) |
(112 | ) | (142 | ) | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| $ | 9,159 | $ | 1,507 | $ | 9,139 | $ | 1,421 | $ | 8,310 | $ | 1,395 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (Stated in millions) | ||||||||||||||||
| Nine Months Ended | ||||||||||||||||
| Sept. 30, 2024 | Sept. 30, 2023 | |||||||||||||||
| Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
|||||||||||||
| Digital & Integration |
$ | 3,091 | $ | 965 | $ | 2,822 | $ | 901 | ||||||||
| Reservoir Performance |
5,369 | 1,082 | 4,826 | 892 | ||||||||||||
| Well Construction |
10,090 | 2,145 | 10,052 | 2,162 | ||||||||||||
| Production Systems |
8,946 | 1,392 | 6,888 | 802 | ||||||||||||
| Eliminations & other |
(491 | ) | (180 | ) | (443 | ) | (102 | ) | ||||||||
|
|
|
|
|
|
|
|||||||||||
| Pretax segment operating income |
5,404 | 4,655 | ||||||||||||||
| Corporate & other |
(568 | ) | (536 | ) | ||||||||||||
| Interest income(1) |
98 | 57 | ||||||||||||||
| Interest expense(1) |
(370 | ) | (363 | ) | ||||||||||||
| Charges & credits(2) |
(279 | ) | 36 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 27,005 | $ | 4,285 | $ | 24,145 | $ | 3,849 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | Excludes amounts which are included in the segments’ results. |
| (2) | See section entitled “Charges & Credits” for details. |
Supplementary Information
Frequently Asked Questions
| 1) | What is the capital investment guidance for the full-year 2024? |
Capital investment (consisting of capex, exploration data costs, and APS investments) for the full-year 2024 is still expected to be approximately $2.60 billion, which is the same level as full-year 2023.
| 2) | What were cash flow from operations and free cash flow for the third quarter of 2024? |
Cash flow from operations for the third quarter of 2024 was $2.45 billion and free cash flow was $1.81 billion.
| 3) | What was included in “Interest & other income” for the third quarter of 2024? |
“Interest & other income” for the third quarter of 2024 was $96 million. This consisted of interest income of $52 million and earnings of equity method investments of $44 million.
| 4) | How did interest income and interest expense change during the third quarter of 2024? |
Interest income of $52 million for the third quarter of 2024 increased $14 million sequentially. Interest expense of $136 million increased $4 million sequentially.
| 5) | What is the difference between SLB’s consolidated income before taxes and pretax segment operating income? |
The difference consists of corporate items, charges and credits, and interest income and interest expense not allocated to the segments, as well as stock-based compensation expense, amortization expense associated with certain intangible assets, certain centrally managed initiatives, and other nonoperating items.
| 6) | What was the effective tax rate (ETR) for the third quarter of 2024? |
The ETR for the third quarter of 2024, calculated in accordance with GAAP, was 19.2% as compared to 19.4% for the second quarter of 2024. Excluding charges and credits, the ETR for both the third quarter of 2024 and for the second quarter of 2024 was 19.1%.
| 7) | How many shares of common stock were outstanding as of September 30, 2024, and how did this change from the end of the previous quarter? |
There were 1.412 billion shares of common stock outstanding as of September 30, 2024, and 1.420 billion shares outstanding as of June 30, 2024.
| (Stated in millions) | ||||
| Shares outstanding at June 30, 2024 |
1,420 | |||
| Shares issued under employee stock purchase plan |
3 | |||
| Shares issued to optionees, less shares exchanged |
— | |||
| Vesting of restricted stock |
— | |||
| Stock repurchase program |
(11 | ) | ||
|
|
|
|||
| Shares outstanding at September 30, 2024 |
1,412 | |||
|
|
|
|||
| 8) | What was the weighted average number of shares outstanding during the third quarter of 2024 and second quarter of 2024? How does this reconcile to the average number of shares outstanding, assuming dilution, used in the calculation of diluted earnings per share? |
The weighted average number of shares outstanding was 1.417 billion during the third quarter of 2024 and 1.428 billion during the second quarter of 2024. The following is a reconciliation of the weighted average shares outstanding to the average number of shares outstanding, assuming dilution, used in the calculation of diluted earnings per share.
| (Stated in millions) | ||||||||
| Third Quarter 2024 |
Second Quarter 2024 |
|||||||
| Weighted average shares outstanding |
1,417 | 1,428 | ||||||
| Unvested restricted stock |
14 | 14 | ||||||
| Assumed exercise of stock options |
1 | 1 | ||||||
|
|
|
|
|
|||||
| Average shares outstanding, assuming dilution |
1,432 | 1,443 | ||||||
|
|
|
|
|
|||||
| 9) | What was SLB’s adjusted EBITDA in the third quarter of 2024, the second quarter of 2024, the third quarter of 2023, the first nine months of 2024, and the first nine months of 2023? What was SLB’s adjusted EBITDA margin for those periods? |
SLB’s adjusted EBITDA was $2.343 billion in the third quarter of 2024, $2.288 billion in the second quarter of 2024, and $2.081 billion in the third quarter of 2023. SLB’s adjusted EBITDA margin was 25.6% in the third quarter of 2024 and 25.0% in both the second quarter of 2024 and the third quarter of 2023.
| (Stated in millions) | ||||||||||||
| Third Quarter 2024 |
Second Quarter 2024 |
Third Quarter 2023 |
||||||||||
| Net income attributable to SLB |
$ | 1,186 | $ | 1,112 | $ | 1,123 | ||||||
| Net income attributable to noncontrolling interests |
32 | 33 | 13 | |||||||||
| Tax expense |
289 | 276 | 259 | |||||||||
|
|
|
|
|
|
|
|||||||
| Income before taxes |
$ | 1,507 | $ | 1,421 | $ | 1,395 | ||||||
| Charges & credits |
112 | 142 | — | |||||||||
| Depreciation and amortization |
640 | 631 | 579 | |||||||||
| Interest expense |
136 | 132 | 129 | |||||||||
| Interest income |
(52 | ) | (38 | ) | (22 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Adjusted EBITDA |
$ | 2,343 | $ | 2,288 | $ | 2,081 | ||||||
|
|
|
|
|
|
|
|||||||
| Revenue |
$ | 9,159 | $ | 9,139 | $ | 8,310 | ||||||
|
|
|
|
|
|
|
|||||||
| Adjusted EBITDA margin |
25.6 | % | 25.0 | % | 25.0 | % | ||||||
|
|
|
|
|
|
|
|||||||
SLB’s adjusted EBITDA was $6.687 billion for the nine months ended September 30, 2024, and $5.830 billion for the nine months ended September 30, 2023. SLB’s adjusted EBITDA margin was 24.8% for the nine months ended September 30, 2024, and 24.1% for the nine months ended September 30, 2023.
| (Stated in millions) | ||||||||||||
| Nine Months 2024 |
Nine Months 2023 |
Change | ||||||||||
| Net income attributable to SLB |
$ | 3,366 | $ | 3,091 | ||||||||
| Net income attributable to noncontrolling interests |
95 | 36 | ||||||||||
| Tax expense |
824 | 722 | ||||||||||
|
|
|
|
|
|||||||||
| Income before taxes |
$ | 4,285 | $ | 3,849 | ||||||||
| Charges & credits |
279 | (36 | ) | |||||||||
| Depreciation and amortization |
1,871 | 1,703 | ||||||||||
| Interest expense |
381 | 373 | ||||||||||
| Interest income |
(129 | ) | (59 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Adjusted EBITDA |
$ | 6,687 | $ | 5,830 | 15 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Revenue |
$ | 27,005 | $ | 24,145 | 12 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Adjusted EBITDA margin |
24.8 | % | 24.1 | % | 62 bps | |||||||
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA represents income before taxes, excluding charges & credits, depreciation and amortization, interest expense, and interest income. Management believes that adjusted EBITDA is an important profitability measure for SLB and that it provides useful perspective on SLB’s underlying business results and operating trends, and a means to evaluate SLB’s operations period over period. Adjusted EBITDA is also used by management as a performance measure in determining certain incentive compensation. Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP.
| 10) | What were the components of depreciation and amortization expense for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023, the first nine months of 2024, and the first nine months of 2023? |
The components of depreciation and amortization expense for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023 were as follows:
| (Stated in millions) | ||||||||||||
| Third Quarter 2024 |
Second Quarter 2024 |
Third Quarter 2023 |
||||||||||
| Depreciation of fixed assets |
$ | 394 | $ | 384 | $ | 365 | ||||||
| Amortization of intangible assets |
87 | 82 | 78 | |||||||||
| Amortization of APS investments |
124 | 118 | 107 | |||||||||
| Amortization of exploration data costs capitalized |
35 | 47 | 29 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 640 | $ | 631 | $ | 579 | |||||||
|
|
|
|
|
|
|
|||||||
The components of depreciation and amortization expense for the nine months ended September 30, 2024, and the nine months ended September 30, 2023, were as follows:
| (Stated in millions) | ||||||||
| Nine Months 2024 |
Nine Months 2023 |
|||||||
| Depreciation of fixed assets |
$ | 1,155 | $ | 1,065 | ||||
| Amortization of intangible assets |
250 | 231 | ||||||
| Amortization of APS investments |
355 | 299 | ||||||
| Amortization of exploration data costs capitalized |
111 | 108 | ||||||
|
|
|
|
|
|||||
| $ | 1,871 | $ | 1,703 | |||||
|
|
|
|
|
|||||
| 11) | What Divisions comprise SLB’s Core business and what were their revenue and pretax operating income for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023? |
SLB’s Core business comprises the Reservoir Performance, Well Construction, and Production Systems Divisions. SLB’s Core business revenue and pretax operating income for the third quarter of 2024, second quarter of 2024, and the third quarter of 2023 are calculated as follows:
| (Stated in millions) | ||||||||||||||||||||
| Three Months Ended | Change | |||||||||||||||||||
| Sept. 30, 2024 |
Jun. 30, 2024 |
Sept. 30, 2023 |
Sequential | Year-on-year | ||||||||||||||||
| Revenue |
||||||||||||||||||||
| Reservoir Performance |
$ | 1,823 | $ | 1,819 | $ | 1,680 | ||||||||||||||
| Well Construction |
3,312 | 3,411 | 3,430 | |||||||||||||||||
| Production Systems |
3,103 | 3,025 | 2,367 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 8,238 | $ | 8,255 | $ | 7,477 | — | 10% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Pretax Operating Income |
||||||||||||||||||||
| Reservoir Performance |
$ | 367 | $ | 376 | $ | 344 | ||||||||||||||
| Well Construction |
714 | 742 | 759 | |||||||||||||||||
| Production Systems |
519 | 473 | 319 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 1,600 | $ | 1,591 | $ | 1,422 | 1% | 12% | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Pretax Operating Margin |
||||||||||||||||||||
| Reservoir Performance |
20.1 | % | 20.6 | % | 20.5 | % | ||||||||||||||
| Well Construction |
21.5 | % | 21.7 | % | 22.1 | % | ||||||||||||||
| Production Systems |
16.7 | % | 15.6 | % | 13.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 19.4 | % | 19.3 | % | 19.0 | % | 16 bps | 40 bps | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
About SLB
SLB (NYSE: SLB) is a global technology company driving energy innovation for a balanced planet. With a global presence in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
Conference Call Information
SLB will hold a conference call to discuss the earnings press release and business outlook on Friday, October 18, 2024. The call is scheduled to begin at 9:30 a.m. U.S. Eastern time. To access the call, which is open to the public, please contact the conference call operator at +1 (844) 721-7241 within North America, or +1 (409) 207-6955 outside North America, approximately 10 minutes prior to the call’s scheduled start time, and provide the access code 8858313. At the conclusion of the conference call, an audio replay will be available until November 18, 2024, by dialing +1 (866) 207-1041 within North America, or +1 (402) 970-0847 outside North America, and providing the access code 8893594. The conference call will be webcast simultaneously at www.slb.com/irwebcast on a listen-only basis. A replay of the webcast will also be available at the same website until November 18, 2024.
| Investors | Media | |
| James R. McDonald – SVP, Investor Relations & Industry Affairs, SLB Joy V. Domingo – Director of Investor Relations, SLB Tel: +1 (713) 375-3535 |
Josh Byerly – SVP of Communications, SLB Moira Duff – Director of External Communications, SLB Tel: +1 (713) 375-3407 Email: media@slb.com |
###
Forward-Looking Statements
This third-quarter 2024 earnings press release, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about our financial and performance targets and other forecasts or expectations regarding, or dependent on, our business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; our business strategies, including digital and “fit for basin,” as well as the strategies of our customers; our capital allocation plans, including dividend plans and share repurchase programs; our APS projects, joint ventures, and other alliances; the impact of the ongoing conflict in Ukraine on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; and future results of operations, such as margin levels. These statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by our customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers and suppliers; the inability to achieve our financial and performance targets and other forecasts and expectations; the inability to achieve our net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical, and business conditions in key regions of the world; the ongoing conflict in Ukraine; foreign currency risk; inflation; changes in monetary policy by governments; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays, or cancellations; challenges in our supply chain; production declines; the extent of future charges; the inability to recognize efficiencies and other intended benefits from our business strategies and initiatives, such as digital or new energy, as well as our cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in this press release and our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission (the “SEC”).
This press release also includes forward-looking statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction. Factors and risks that may impact future results and performance include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX; the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers, and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change, or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction; other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction, as well as the risk factors discussed in SLB’s and ChampionX’s most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this press release regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this press release are made as of the date of this release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.
Additional Information about the Transaction with ChampionX and Where to Find It
In connection with the proposed transaction with ChampionX, SLB filed with the SEC a registration statement on Form S-4 on April 29, 2024 (as amended, the “Form S-4”) that includes a proxy statement of ChampionX and that also constitutes a prospectus of SLB with respect to the shares of SLB to be issued in the proposed transaction (the “proxy statement/prospectus”). The Form S-4 was declared effective by the SEC on May 15, 2024. SLB and ChampionX filed the definitive proxy statement/prospectus with the SEC on May 15, 2024 (https://www.sec.gov/Archives/edgar/data/87347/000119312524139403/d818663d424b3.htm), and it was first mailed to ChampionX stockholders on or about May 15, 2024. Each of SLB and ChampionX may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the Form S-4 or proxy statement/prospectus or any other document that SLB or ChampionX may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the Form S-4 and the proxy statement/prospectus (if and when available) and other documents containing important information about SLB, ChampionX and the proposed transaction, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by SLB will be available free of charge on SLB’s website at https://investorcenter.slb.com. Copies of the documents filed with, or furnished to, the SEC by ChampionX will be available free of charge on ChampionX’s website at https://investors.championx.com. The information included on, or accessible through, SLB’s or ChampionX’s website is not incorporated by reference into this communication.
###