Q4 2024 Schlumberger NV Earnings Call Transcript
Key Points
- Schlumberger Ltd (SLB) achieved solid earnings and free cash flow, with a strong performance in the Middle East and North America.
- The company reported a new record high for international revenue in the fourth quarter, demonstrating the strength of its diversified portfolio.
- Digital revenue grew by 20% for the full year, exceeding targets, driven by strategic partnerships and increased demand for cloud computing and AI.
- SLB's Production Systems division led growth with a 24% increase, supported by double-digit revenue increases in surface systems, completions, and artificial lift.
- The company is expanding its exposure beyond oil and gas, with significant growth momentum in low-carbon markets and data center infrastructure solutions, generating over $850 million in revenue in 2024.
- The rate of upstream investment growth continued to moderate, with declines in Saudi Arabia and Mexico impacting overall performance.
- North American revenue declined by 1% year-on-year, with pricing pressure affecting margins despite higher digital revenues.
- The offshore market is expected to experience a muted environment in 2025 due to white space in deepwater activity.
- SLB's revenue in Russia continues to decline, accounting for only 4% of global revenue in 2024.
- The company anticipates flat revenue growth for 2025, with some regions experiencing reduced spending, such as Saudi Arabia, Egypt, and Australia.
Good morning. My name is Kate, and I will be your conference operator today and would like to welcome everyone to the fourth quarter SLB earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a Q&A session.
(Operator Instructions) This call is being recorded. I will now turn the call over to James R. McDonald, Senior Vice President of Investor Relations and Industry Affairs. Please go ahead.
Thank you, Kate. Good morning, and welcome to the SLB fourth quarter and full year 2024 earnings conference call. Today's call is being hosted from Houston following our Board Meeting held earlier this week. Joining us on the call are Olivier Le Peuch, Chief Executive Officer and Stephane Biguet, Chief Financial Officer.
Before we begin, I would like to remind all participants that some of the statements we will be making today are forward-looking. These matters involve risks and
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