SLB Announces First-Quarter 2025 Results; Remains Committed to Return a Minimum of $4 Billion to Shareholders in 2025

National Post

25-04-2025

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Revenue of $8.49 billion decreased 3% year on year
GAAP EPS of $0.58 decreased 22% year on year
EPS, excluding charges and credits, of $0.72 decreased 4% year on year
Net income attributable to SLB of $797 million decreased 25% year on year
Adjusted EBITDA of $2.02 billion decreased 2% year on year
Cash flow from operations of $660 million increased $333 million year on year
Board approved quarterly cash dividend of $0.285 per share
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HOUSTON — SLB (NYSE: SLB) today announced results for the first-quarter 2025.
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(Stated in millions)
Three Months Ended
Change
Mar. 31,
2025
Dec. 31,
2024
Mar. 31,
2024
Sequential
Year-on-year
Revenue by Division
Digital & Integration
$1,006
$1,156
$953
-13%
6%
Reservoir Performance
1,700
1,810
1,725
-6%
-1%
Well Construction
2,977
3,267
3,368
-9%
-12%
Production Systems
2,938
3,197
2,818
-8%
4%
Other
(131)
(146)
(157)
n/m
n/m
$8,490
$9,284
$8,707
-9%
-3%
Pretax Operating Income by Division
Digital & Integration
$306
$442
$254
-31%
21%
Reservoir Performance
282
370
339
-24%
-17%
Well Construction
589
681
690
-14%
-15%
Production Systems
475
506
400
-6%
19%
Other
(96)
(81)
(34)
n/m
n/m
$1,556
$1,918
$1,649
-19%
-6%
Pretax Operating Margin by Division
Digital & Integration
30.4%
38.3%
26.6%
-784 bps
380 bps
Reservoir Performance
16.6%
20.5%
19.7%
-391 bps
-311 bps
Well Construction
19.8%
20.8%
20.5%
-106 bps
-71 bps
Production Systems
16.2%
15.8%
14.2%
34 bps
197 bps
Other
n/m
n/m
n/m
n/m
n/m
18.3%
20.7%
18.9%
-232 bps
-60 bps
*These are non-GAAP financial measures. See sections titled 'Charges & Credits', 'Divisions' and 'Supplementary Information' for details.
n/m = not meaningful
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'First-quarter adjusted EBITDA margin was slightly up year on year despite softer revenue as we continued to navigate the evolving market dynamics,' said SLB Chief Executive Officer, Olivier Le Peuch.
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'It was a subdued start to the year as revenue declined 3% year on year. Higher activity in parts of the Middle East, North Africa, Argentina and offshore U.S., along with strong growth in our data center infrastructure solutions and digital businesses in North America, were more than offset by a sharper-than-expected slowdown in Mexico, a slow start to the year in Saudi Arabia and offshore Africa, and steep decline in Russia.
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'The expansion of our accretive margin digital business and the strength of our Production Systems division, combined with our cost reduction initiatives, have driven another consecutive quarter of year-on-year adjusted EBITDA margin growth.
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'These results demonstrate SLB's resilience in changing market conditions. We are continuously exercising cost discipline and aligning our resources with activity levels, leveraging our global reach and industry-leading innovation capabilities, expanding our differentiated digital offerings, and strategically diversifying the portfolio beyond oil and gas,' Le Peuch said.
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'In the Core, we continue to see rising demand for production solutions as customers seek to offset declines and maintain or grow production from maturing assets. This is an area that will continue to present strong opportunities for SLB. As a result, Production Systems revenue grew 4% and expanded pretax operating margins by 197 bps year on year, with strong demand for surface production systems, completions, and artificial lift. In addition, Reservoir Performance was supported by strong international unconventional stimulation and intervention activity although it was offset by lower evaluation activity.
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'Overall, the combined revenue of the Core divisions was down 4% year on year, as growth in Production Systems was more than offset by declines in Reservoir Performance and Well Construction. Despite the year-on-year decline, our diversified portfolio and broad market position helped to offset lower rig activity,' Le Peuch said.