Latest news with #LePeuch
Business Insider
19-07-2025
- Business
- Business Insider
SLB Earnings: SLB Stock Gushes Higher as Q2 Earnings Beat Forecasts
Shares in oil field services and energy technology group Schlumberger (SLB) were higher today as Q2 earnings beat estimates despite weakness in key global markets. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Headwinds Resilience SLB reported adjusted earnings per share of $0.74 for the quarter, down from $0.85 in the prior three-month period, but above Bloomberg consensus expectations of $0.73. Revenues dropped by 6.5% to $8.55 billion, but again beat forecasts of $8.48 billion. The performance kept up the company's forecast-beating heritage. Last month the company pointed out in a presentation that weaker drilling activity in Saudi Arabia and Latin America could impact earnings. However, today CEO Olivier Le Peuch said the returns demonstrated its resilience to headwinds from softer upstream spending and broader economic uncertainty. 'The market is navigating several dynamics — including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts. Despite this, commodity prices have remained range bound. Meanwhile, customers have selectively adjusted activity, prioritizing key projects and planning cautiously. In this context, the upstream market has remained relatively resilient, underscoring the enduring strength of our industry,' Le Peuch said. Digital Delight Its digital division, where it is 'partnering with customers to migrate their technology and workflows into the cloud, to embrace new AI-enabled capabilities,' saw a 7% lift in pre-tax operating income to $327 million. Revenues slipped 1% to $995 million. This includes deploying its AI platform on Mistral Compute, the integrated AI compute offering introduced by Mistral AI. SLB also intends to increase its exposure to the 'less cyclical and growing production and recovery space' via its $8 billion acquisition of ChampionX, (CHX) which closed earlier this week. On TipRanks, SLB has a Strong Buy consensus based on 14 Buy and 2 Hold ratings. Its highest price target is $53. SLB stock's consensus price target is $45.38 implying a 30.89% upside.
Business Wire
18-07-2025
- Business
- Business Wire
SLB Announces Second-Quarter 2025 Results
PARIS--(BUSINESS WIRE)--SLB (NYSE: SLB) today announced results for the second-quarter 2025. Oil and Gas Markets Hold Steady Amid Global Uncertainty 'SLB reported solid second-quarter results, leveraging our diversified portfolio and broad market exposure to deliver steady revenue and slightly higher adjusted EBITDA and margins sequentially. This demonstrates our resilience amidst softer upstream spending and macroeconomic uncertainty," said SLB Chief Executive Officer Olivier Le Peuch. "The market is navigating several dynamics — including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts. Despite this, commodity prices have remained range bound. Meanwhile, customers have selectively adjusted activity, prioritizing key projects and planning cautiously, particularly in offshore deepwater markets. 'In this context, the upstream market has remained relatively resilient, underscoring the enduring strength of our industry,' Le Peuch said. SLB's Broad Market Exposure Helps to Overcome Regional Headwinds 'Our broad exposure across geographies and business lines enabled us to effectively overcome the impact of certain regional activity slowdowns. As a result, we achieved a 2% sequential increase in international revenue, driven by robust growth in some parts of the Middle East, Asia, Europe and North Africa, which more than offset declines in select key markets. 'Our performance was supported by steady results in digital, with double-digit sequential revenue growth from our platforms, applications and digital operations largely offset by lower sales of exploration data following a strong first quarter. Additionally, we continue to benefit from strategically diversifying the portfolio outside of oil and gas businesses,' Le Peuch said. Customers Increasing Focus on Production and Recovery Efforts 'Production Systems revenue climbed 3% sequentially and marked the 17th consecutive quarter of year-on-year growth. The sequential growth was driven by strong sales of artificial lift and midstream production systems. 'In today's capital-disciplined environment, customers are focused on maximizing the value of their assets while improving efficiency in the production phase of their operations. SLB's technology portfolio and domain expertise across reservoir, wellbore and surface systems are aligned with these efforts. As a result, demand for production and recovery solutions has risen, particularly in the U.S. and mature basins. 'Moving forward, we will increase our exposure to the less cyclical and growing production and recovery space with the recent closing of our acquisition of ChampionX. Our combined portfolio, technology capabilities and digital leadership will position SLB to create value for our customers and stakeholders while delivering best-in-class workflow integration across production chemicals and artificial lift,' Le Peuch said. SLB Sees Industry Demonstrating Resilience 'Despite pockets of activity adjustments in key markets, the industry has shown that it can operate through uncertainty without a significant drop in upstream spending. This has been driven by the combination of capital discipline and the need for energy security. 'Looking ahead, assuming commodity prices stay range bound, we remain constructive for the second half of the year. This is supported by our position in key markets, the depth of our diversified portfolio, and our increased exposure to the growing production and recovery market through the acquisition of ChampionX. We will also continue to manage costs in line with market conditions as we remain focused on delivering peer-leading adjusted EBITDA margins. 'Overall, I am confident that SLB's differentiated technology and global footprint will continue to deliver positive results for our customers and shareholders," Le Peuch concluded. Other Events On June 26, 2025, SLB completed its sale of its working interests in the Palliser Block located in Alberta, Canada. On July 16, 2025, SLB completed its acquisition of ChampionX. The combined portfolio, technology capabilities and digital leadership will position SLB to create value for its customers and stakeholders by increasing its exposure to the growing production and recovery market while delivering best-in-class workflow integration across production chemicals and artificial lift. On July 17, 2025, SLB's Board of Directors approved a quarterly cash dividend of $0.285 per share of outstanding common stock, payable on October 9, 2025, to stockholders of record on September 3, 2025. Second-Quarter Revenue by Geographical Area International Revenue in Latin America of $1.49 billion was essentially flat sequentially. Growth from offshore activity in Brazil coupled with increased land activity in Argentina was offset by reduced sales of production systems in Guyana. Year on year, revenue declined 14%, primarily due to a significant reduction in land drilling activity in Mexico, partially offset by robust unconventional stimulation activity in Argentina. Europe & Africa revenue of $2.37 billion increased 6% sequentially, driven by significant sales of artificial lift in North Africa, subsea production systems in Nigeria, and higher digital revenue and increased sales of production systems in Europe. These increases were partially offset by lower offshore drilling, evaluation and stimulation activity in Namibia due to project conclusions and a pause in exploration activity. Year on year, revenue declined 3% as a result of reduced deepwater activity, partially offset by strong sales of artificial lift in North Africa and increased sales of production systems in Europe. Revenue in the Middle East & Asia of $2.99 billion was essentially flat sequentially as solid drilling performance and higher production system sales in Iraq and the United Arab Emirates, along with increased activity across Asia, were offset by activity decline in Saudi Arabia and Qatar. Year on year, revenue declined 9% due to reduced activity and lower production system sales in Saudi Arabia. Declines were also noted in Asia, Egypt and Qatar, partially offset by significantly higher revenues in the United Arab Emirates, Kuwait and Iraq. North America North America revenue of $1.65 billion decreased 4% sequentially. The decline stemmed from lower Asset Performance Solutions (APS) revenue in the Palliser block that was divested and reduced drilling activity due to the Canadian seasonal spring breakup. Offshore revenue fell as a result of lower exploration data sales. These decreases were partially offset by modest gains in U.S. land revenue, supported by increased sales of production systems, higher digital sales and growth in data center infrastructure solutions. Year on year, revenue was slightly higher, driven by strong growth in data center infrastructure solutions but largely offset by reduced APS revenue in Canada and a sharp decline in U.S. land drilling activity. Second-Quarter Results by Division Digital & Integration Digital & Integration revenue of $995 million decreased 1% sequentially primarily due to lower APS revenue in Canada. Digital revenue remained steady, with double-digit sequential growth from the combined effects of platforms, applications and digital operations, offset by reduced sales of exploration data following a strong first quarter. Year on year, revenue declined 5%, reflecting lower APS revenue mostly in Canada. While digital sales delivered solid growth internationally, overall digital revenue dipped slightly as higher platform and application sales were outweighed by lower exploration data revenue in North America. Digital & Integration pretax operating margin of 33% expanded 240 basis points (bps) sequentially and 186 bps year over year. This margin improvement was primarily driven by greater digital adoption and cost-efficiency gains. Reservoir Performance Reservoir Performance revenue of $1.69 billion declined 1% sequentially. This was due to a slowdown in evaluation and stimulation activity across international markets, partially offset by strong intervention activity. Regional growth in stimulation and intervention was notable in Argentina, North Africa, East Asia and Kuwait; however, these gains were outweighed by activity declines in Saudi Arabia, Qatar, Namibia and Mexico. Year on year, revenue dropped 7%, primarily due to reduced activity in Saudi Arabia, Namibia and Mexico. These decreases were partially mitigated by robust stimulation activity in Argentina. Reservoir Performance pretax operating margin of 19% increased 203 bps sequentially. This improvement stemmed from higher intervention activity and the absence of startup costs that impacted the first quarter. Year on year, pretax operating margin contracted by 205 bps, driven by lower profitability resulting from decreased evaluation and stimulation activity. Well Construction Well Construction revenue of $2.96 billion was essentially flat sequentially. Higher revenue in Iraq, the United Arab Emirates, offshore Mexico, North Africa and Nigeria were offset by notable declines in drilling activity in Namibia, North America land markets, Argentina and Saudi Arabia. Year on year, revenue fell 13%, driven by a broad reduction in drilling activity across Mexico, Namibia, Saudi Arabia, North America, Guyana and India. These decreases were partially offset by stronger performance in the United Arab Emirates and North Africa. Well Construction pretax operating margin was 19%, down 119 bps sequentially and 315 bps year on year. Margin compression stemmed from widespread activity reductions across North America and several international markets. Cost efficiency measures partially offset the decline. Production Systems Production Systems revenue of $3.04 billion increased 3% sequentially. This growth was fueled by higher sales of artificial lift systems, midstream production solutions, valves and completions, as well as higher data center infrastructure solutions in North America. These gains were partially offset by lower sales of surface production systems. Year on year, revenue grew slightly as strong demand for data center infrastructure solutions, artificial lift and completions was largely offset by reduced sales of subsea production systems and valves. Production Systems pretax operating margin remained steady sequentially at 16% and improved 79 bps year on year. This margin expansion was driven by stronger profitability across several business lines — supported by a favorable activity mix, efficient execution and conversion of higher-margin backlog. Quarterly Highlights CORE Contract Awards SLB continues to win new contract awards that align with SLB's strengths in the Core. Notable highlights include the following: Offshore Trinidad and Tobago, bp awarded a substantial engineering, procurement, construction and installation contract to SLB's OneSubsea™ joint venture and to its Subsea Integration Alliance Partner, Subsea7, for the Ginger project. This is the first project award under the global framework agreement between bp and Subsea Integration Alliance partners. Building on a long-standing successful relationship, this agreement establishes a new way of working that enables system-level optimization through increased transparency and early engagement. For the Ginger project, SLB OneSubsea will deliver four standardized vertical monobore subsea trees and tubing hangers as well as the first high-integrity pressure protection system manifold in the region. In Norway, SLB's OneSubsea was awarded an engineering, procurement and construction contract by Equinor (Technical Service Provider) for a CO 2 subsea injection system for the Northern Lights phase two offshore project. The final investment decision for phase two was made by the Northern Lights' owners TotalEnergies, Shell and Equinor following a commercial agreement with an end-use customer, marking a decisive milestone for the adoption of carbon capture and storage (CCS) at scale. The SLB OneSubsea scope includes two new satellite subsea CO 2 injection systems with associated tie-in equipment. Work has already commenced, with first deliveries expected in 2026. The award follows the successful delivery of two subsea injection systems for the first phase of this project in 2023. In Gabon and the Republic of Congo, SLB was awarded a multiyear contract by Perenco to deliver well construction measurement services. The contract spans three years in Gabon and two years in Congo. As part of this agreement, SLB will deploy advanced technologies, including the PowerDrive Archer™ hybrid rotary steerable system, to address shallow formation challenges. The project will also leverage adaptive, digitally enabled equipment to enhance operational efficiency and support Perenco's regional development strategy. This award reinforces SLB's position as a trusted partner in Africa and aligns with our commitment to delivering high-performance, technology-driven solutions that maximize value for our customers. In Oman, Petroleum Development Oman awarded SLB two five-year contracts for integrated completion services as well as wireline and tubing-conveyed perforation across its Block 6 concession. SLB secured this award based on its technology leadership, consistent performance and service quality, along with a solid in-country value offering, which includes equipment made in Oman at its Nizwa assembly, repair and testing center. In alignment with Oman Vision 2040, SLB is committed to expanding local manufacturing in support of Oman's In-Country Value strategy. In Qatar, North Oil Company awarded SLB a contract to provide Electris™ completions technologies aimed at boosting production and recovery in its Al-Shaheen field. The completion incorporates Electris interval control valves and SLB dual-pod electrical submersible pumps (ESPs) to optimize output. This marks the inaugural award for Electris completions in Qatar and the first contract globally paired with an SLB ESP. Technology and Innovation Notable technology introductions and deployments in the quarter include the following: SLB launched Electris — a portfolio of digitally enabled electric well completions technologies that boost production and recovery while reducing the total cost of ownership of an asset. Electris completions digitalize control of the entire productive area of the wellbore, providing real-time production intelligence across the reservoir. This enables operators to predict, adapt and act with confidence in response to dynamic production conditions — improving reservoir management over the life of the well and accessing reserves that conventional systems leave behind. There have already been more than 100 installations of Electris completions technologies across five countries. In Norway, Electris completions were deployed offshore to enhance oil production in an extended-reach well. The operator is using intelligence from the system to determine which zones are contributing to production, optimize oil output and minimize produced water. Controlling water production with Electris completions has decreased the energy needed to lift and re-inject treated water back into the reservoir. SLB launched Retina™ at-bit imaging system, which is a groundbreaking technology that converts measurements taken at the drill bit into high-quality borehole images. The technology enables identification of formation characteristics to optimize drilling efficiency, formation evaluation and safety. This first-of-its-kind solution provides precise measurements at the critical point of first contact between the drill bit and the formation, providing unsurpassed image clarity in large hole sizes as drilling commences and the borehole diameter reduces progressively toward the reservoir section. Applicable to drilling operations utilizing any drilling fluid composition, the Retina system enables the highest-resolution imaging to date, providing critical insights into the formation. In Ecuador, SLB and ENAP deployed advanced technologies — including GeoSphere HD™ high-definition reservoir mapping-while-drilling service and PowerDrive Archer hybrid rotary steerable system — to mitigate known risks during landing and navigation, helping to overcome the country's longstanding technical and strategic challenges in drilling horizontal wells. Supported by tailored well design and engineering, the team achieved precise placement and 100% pay zone contact over 1,200 feet. ENAP's most productive well sets a benchmark for future horizontal drilling in the region. This approach enhances returns while reducing surface impact, aligning with broader goals for efficiency, emissions reduction and resilient energy development. In Nigeria, SLB partnered with Western Africa Exploration and Production Company to install a customized facility for Production Express™ rapid production response solutions on an offshore vessel. This facility processes crude oil to required specifications for transportation to onshore facilities via offshore tankers and achieves 10,000 barrels of refinery-grade production per day at full capacity. In the United Arab Emirates, Turnwell Industries LLC OPC, the joint venture between ADNOC Drilling Company, SLB and Patterson-UTI, drilled 95% of a 9,210-foot well section in autonomous directional control mode by leveraging the SLB DrillOps™ advisory solution and Neuro™ autonomous solutions. Leveraging these digital drilling solutions, a new pad record for rate of penetration was set in the 8.5-inch section, reducing drilling time below the 15-days-per-well benchmark. In East Kuwait, SLB and Kuwait Oil Company enhanced production from the Mauddud Formation, a tight carbonate reservoir with historically low recovery rates. SLB developed a tailored stimulation workflow using advanced 3D reservoir modeling, geomechanical analysis and multiphysics acid fracturing simulations. The use of SLB innovative technologies, including Ora™ platform, OpenPath Flex™ service, 3D far-field sonic service, UltraTRAC™ tractor and ThruBit™ services, provided unprecedented insights and guided strategic mitigation approaches to refine stimulation fluid formulations. By using an openhole multistage completion strategy and advanced stimulation fluid, the first two wells achieved a record-setting total production rate of 4,500 barrels of production per day. Subsequent wells also employed cutting-edge technology for enhanced geosteering, fracture analysis and optimal stage placement, significantly improving production performance. In Pakistan, Oil & Gas Development Company Limited achieved approximately 10,000 incremental barrels of oil per day and about 3 million cumulative barrels of oil by using the SLB high-performance Reda ESP™ pump. The wells are monitored with Lift IQ™ production life cycle management service, which provides real-time analytics and optimization that minimizes downtime, maximizes production and reduces the total operating cost with continuous monitoring and surveillance. 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 announced that it will deploy its AI platform on Mistral Compute, the integrated AI compute offering introduced by Mistral AI that will provide an integrated AI environment for European enterprises and governments. SLB's collaboration with Mistral AI, which began in early 2024, established Mistral AI's large language models as the primary generative AI models for the Lumi™ data and AI platform. The choice was driven by Mistral AI's powerful, efficient and open models, which can be deployed across various cloud and on-premises environments. SLB announced a partnership with Shell to deploy Petrel™ subsurface modeling across its assets worldwide. Shell will use Petrel modeling powered by advanced AI to deliver seismic interpretation workflows. The deployment aims to standardize infrastructure and workflows and accelerate scalable digital solutions, helping to improve Shell's cost operating efficiencies. With a strong focus on partnering to innovate, Shell and SLB will use the deployment as the foundation for integrated geoscience workflows to further advance understanding of the subsurface across the asset life cycle. SLB announced a strategic collaboration agreement with Cactus Drilling, the largest privately held land drilling contractor in the U.S., to expand the adoption of automated and autonomous drilling solutions. Under the agreement, Cactus will build on its current use of SLB's Precise™ automated drilling system by integrating the DrillSync™ platform, SLB's automated controls platform and software suite. These technologies will work together to improve drilling efficiency, increase equipment utilization and provide real-time data insights for better execution. The agreement will also enable deployment of DrillOps solutions, SLB's AI-powered drilling automation and advisory solution, along with Neuro solutions, which supports self-learning, autonomous directional drilling and geosteering capabilities. In Nigeria, Renaissance Africa Energy Company awarded SLB a software agreement to deploy advanced digital solutions like Petrel subsurface modeling, Techlog™ wellbore interpretation and Eclipse™ reservoir simulator. This agreement will drive enhanced operational efficiency, comprehensive data management and real-time decision-making capabilities for greater agility. In Malaysia, Velesto Energy Berhad, through its subsidiary Velesto Drilling Sdn Bhd, and SLB have signed a three-year collaboration agreement to deploy DrillOps intelligent well delivery and insights solutions, as well as drilling emissions management solutions on designated Velesto rigs. These solutions are designed to optimize drilling performance and monitor emissions. In the United States, Karoon Energy has awarded SLB a contract to use the Delfi™ digital platform for integrated subsurface interpretation and modeling. The cloud-based platform enables the scaling of user profiles and on-demand computing power, eliminating the need for substantial digital infrastructure capital investment. This capability supports Karoon's expansion plans in the country. Also in the United States, Great Bear has awarded SLB a contract to deploy DrillPlan™ coherent well planning and engineering solutions for its upcoming drilling campaign in North Slope Borough of Alaska. This solution will support Great Bear's efforts to collaborate with multiple vendors on a single platform, minimizing nonproductive time and increasing planning efficiency through improved visibility and control. NEW ENERGY SLB continues to participate in the global transition to low-carbon energy systems through innovative technology and strategic partnerships, including the following: SLB launched Sequestri™ carbon storage solutions — a comprehensive portfolio of technologies and services for accelerating safer and more economic carbon storage projects. The Sequestri portfolio addresses the unique challenges of long-term carbon storage, providing tailored hardware and digital workflows that improve decision-making across the full carbon storage value chain, from site selection and planning to development, operations and monitoring. Together with the SLB Capturi™ standard, modular carbon capture solutions, this portfolio provides a full suite of CCS solutions to enable decarbonization at scale from point of capture to permanent carbon storage. In Norway, the world's first full-scale carbon capture facility for cement production was officially opened at Heidelberg Materials' plant in Brevik. The Heidelberg Materials carbon capture plant, enabled by SLB Capturi's Big Catch™ technology, is part of the Norwegian government's Longship project developing Europe's first full-scale value chain for carbon capture, transport and storage from hard-to-abate industries. The Brevik facility carbon plant, designed to capture 400,000 metric tons of CO 2 annually, captured, liquefied and temporarily stored its first CO 2 in May. In the United States, SLB has partnered with Google Cloud ® and Project InnerSpace to drive the global adoption of geothermal energy. This collaboration will complement Project InnerSpace's innovative GeoMap™ dataset with SLB GeothermEx™ geothermal consulting services. By leveraging advanced mapping technology, deep geothermal knowledge and Google Cloud's powerful computing, the partnership aims to accelerate the identification, development and deployment of geothermal energy solutions worldwide. FINANCIAL TABLES (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. Expand Condensed Consolidated Balance Sheet Liquidity (Stated in millions) Components of Liquidity Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Dec. 31, 2024 Cash and short-term investments $3,747 $3,897 $4,003 $4,669 Short-term borrowings and current portion of long-term debt (2,807 ) (3,475 ) (1,033 ) (1,051 ) Long-term debt (10,891 ) (10,527 ) (12,156 ) (11,023 ) Net Debt (1) $(9,951 ) $(10,105 ) $(9,186 ) $(7,405 ) Details of changes in liquidity follow: Six Second Six Months Quarter Months Periods Ended June 30, 2025 2025 2024 Net income $1,877 $1,048 $2,243 Gain on sale of APS project (2) (149 ) (149 ) - Impairment of equity method investment (2) 69 69 - Depreciation and amortization (3) 1,273 633 1,231 Stock-based compensation expense 168 77 173 Change in working capital (1,401 ) (464 ) (1,906 ) Other (35 ) (72 ) 22 Cash flow from operations $1,802 $1,142 $1,763 Capital expenditures (769 ) (371 ) (862 ) APS investments (225 ) (117 ) (256 ) Exploration data capitalized (83 ) (32 ) (91 ) Free cash flow (4) 725 622 554 Dividends paid (773 ) (387 ) (751 ) Stock repurchase program (2,300 ) - (735 ) Proceeds from employee stock plans 105 - 100 Proceeds from stock options 8 - 20 Business acquisitions and investments, net of cash acquired (47 ) (10 ) (505 ) Proceeds from sale of APS project 316 316 - Purchases of Blue Chip Swap securities (123 ) (48 ) (76 ) Proceeds from sale of Blue Chip Swap securities 102 39 51 Taxes paid on net settled stock-based compensation awards (55 ) (2 ) (78 ) Other (9 ) 11 39 (Increase) decrease in net debt before impact of changes in foreign exchange rates (2,051 ) 541 (1,381 ) Impact of changes in foreign exchange rates on net debt (495 ) (387 ) 171 (Increase) decrease in Net Debt (2,546 ) 154 (1,210 ) Net Debt, beginning of period (7,405 ) (10,105 ) (7,976 ) Net Debt, end of period $(9,951 ) $(9,951 ) $(9,186 ) Expand (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. Expand Charges & Credits In addition to financial results determined in accordance with US generally accepted accounting principles (GAAP), this second-quarter 2025 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) Six Months 2025 Pretax Tax Noncont. Interests Net Diluted EPS * Workforce reductions (1) 224 14 - 210 0.15 Merger & integration (2) 84 4 8 72 0.05 Impairment of equity-method investment (1) 69 12 - 57 0.04 Gain on sale of Palliser APS project (3) (149 ) (4 ) - (145 ) (0.11 ) SLB net income, excluding charges & credits $2,576 $497 $74 $2,005 $1.46 Six Months 2024 Pretax Tax Noncont. Interests Net Diluted EPS EPS * SLB net income (GAAP basis) $2,778 $535 $63 $2,180 $1.51 Workforce reductions (1) 111 17 - 94 0.07 Merger & integration (5) 56 11 13 32 0.02 SLB net income, excluding charges & credits $2,945 $563 $76 $2,306 $1.60 * Does not add due to rounding. Expand (1) Classified in Restructuring & other in the Condensed Consolidated Statement of Income. (2) Classified in Merger & integration in the Condensed Consolidated Statement of Income. (3) Classified in Interest & other income in the Condensed Consolidated Statement of Income. (4) $15 million of these charges were classified in Cost of revenue in the Condensed Consolidation Statement of Income with the remaining $16 million classified in Merger & integration. (5) $29 million of these charges were classified in Cost of revenue in the Condensed Consolidation Statement of Income with the remaining $27 million classified in Merger & integration. Expand Divisions (Stated in millions) Three Months Ended Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Revenue Income Before Taxes Revenue Income Before Taxes Revenue Income Before Taxes Digital & Integration $995 $327 $1,006 $306 $1,050 $325 Reservoir Performance 1,691 314 1,700 282 1,819 376 Well Construction 2,963 551 2,977 589 3,411 742 Production Systems 3,036 499 2,938 475 3,025 473 Eliminations & other (139 ) (107 ) (131 ) (96 ) (166 ) (62 ) Pretax segment operating income 1,584 1,556 1,854 Corporate & other (169 ) (179 ) (191 ) Interest income (1) 30 36 29 Interest expense (1) (139 ) (144 ) (129 ) Charges & credits (2) (21 ) (206 ) (142 ) $8,546 $1,285 $8,490 $1,063 $9,139 $1,421 Expand (Stated in millions) Six Months Ended Jun. 30, 2025 Jun. 30, 2024 Revenue Income Before Taxes Revenue Income Before Taxes Digital & Integration $2,001 $633 $2,003 $579 Reservoir Performance 3,391 596 3,544 715 Well Construction 5,940 1,140 6,779 1,432 Production Systems 5,974 973 5,843 873 Eliminations & other (271 ) (202 ) (323 ) (97 ) Pretax segment operating income 3,140 3,502 Corporate & other (347 ) (382 ) Interest income (1) 66 63 Interest expense (1) (283 ) (238 ) Charges & credits (2) (228 ) (167 ) $17,035 $2,348 $17,846 $2,778 Expand (1) Excludes amounts which are included in the segments' results. (2) See section entitled 'Charges & Credits' for details. Expand Supplementary Information Frequently Asked Questions 1) What is the capital investment guidance for the full-year 2025? Capital investment (consisting of capex, exploration data costs and APS investments) for the full-year 2025 is now expected to be approximately $2.4 billion, reflecting the impact of the ChampionX acquisition. Capital investment for the full-year 2024 was $2.6 billion. 2) What were cash flow from operations and free cash flow for the second quarter of 2025? Cash flow from operations for the second quarter of 2025 was $1.14 billion and free cash flow was $622 million. 3) What was included in 'Interest & other income' for the second quarter of 2025? 'Interest & other income' for the second quarter of 2025 was $252 million. This consisted of the following: Expand (Stated in millions) Gain on sale of Palliser APS project $149 Interest income 30 Earnings of equity method investments 73 $252 Expand 4) How did interest income and interest expense change during the second quarter of 2025? Interest income of $30 million for the second quarter of 2025 decreased $4 million sequentially. Interest expense of $142 million decreased $5 million sequentially. 5) 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 second quarter of 2025? The ETR for the second quarter of 2025, calculated in accordance with GAAP, was 18.4% as compared to 22.0% for the first quarter of 2025. Excluding charges and credits, the ETR for the second quarter of 2025 was 19.3% as compared to 19.4% for the first quarter of 2025. 7) How many shares of common stock were outstanding as of June 30, 2025, and how did this change from the end of the previous quarter? There were 1.351 billion shares of common stock outstanding as of June 30, 2025, and 1.360 billion shares outstanding as of March 31, 2025. Expand 8) What was the weighted average number of shares outstanding during the second quarter of 2025 and first quarter of 2025? 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 1.352 billion during the second quarter of 2025 and 1.366 billion during the first quarter of 2025. 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. Expand 9) What was SLB's adjusted EBITDA in the second quarter of 2025, the first quarter of 2025, the second quarter of 2024, the first six months of 2025, and the first six months of 2024? What was SLB's adjusted EBITDA margin for those periods? SLB's adjusted EBITDA was $2.051 billion in the second quarter of 2025, $2.020 billion in the first quarter of 2025, and $2.288 billion in the second quarter of 2024. SLB's adjusted EBITDA margin was 24.0% in the second quarter of 2025, 23.8% in the first quarter of 2025, and 25.0% in the second quarter of 2024, and was calculated as follows: Expand SLB's adjusted EBITDA was $4.072 billion in the first six months of 2025 and $4.344 billion in the first six months of 2024. SLB's adjusted EBITDA margin was 23.9% in the first six months of 2025 and 24.3% in the first six months of 2024, and was calculated as follows: Expand 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. Expand 10) What were the components of depreciation and amortization expense for the second quarter of 2025, the first quarter of 2025, the second quarter of 2024, the first six months of 2025, and the first six months of 2024? The components of depreciation and amortization expense for the second quarter of 2025, the first quarter of 2025, and the second quarter of 2024 were as follows: Expand 11) What Divisions comprise SLB's Core business and what were their revenue and pretax operating income for the second quarter of 2025, the first quarter of 2025, and the second quarter of 2024? 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 second quarter of 2025, the first quarter of 2025, and the second quarter of 2024 are calculated as follows: Expand 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 Conference Call Information SLB will hold a conference call to discuss the earnings press release and business outlook on Friday, July 18, 2025. 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 (833) 470-1428 within North America, or +1 (404) 975-4839 outside of North America, approximately 10 minutes prior to the call's scheduled start time, and provide the access code 719185. At the conclusion of the conference call, an audio replay will be available until July 25, 2025, by dialling +1 (866) 813-9403 within North America, or +1 (929) 458-6194 outside of North America, and providing the access code 672413. The conference call will be webcasted simultaneously at on a listen-only basis. A replay of the webcast will also be available at the same website until July 25, 2025. Forward-Looking Statements This second-quarter 2025 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); the benefits of the ChampionX acquisition, including the ability of SLB to integrate the ChampionX business successfully and to achieve anticipated synergies and value creation from the acquisition; 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 or escalating conflicts 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; foreign currency risk; inflation; changes in monetary policy by governments; tariffs; 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'). 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.
Yahoo
25-06-2025
- Business
- Yahoo
SLB Warns of Flat Q2 on Saudi and Latin America Activity Slowdown
SLB SLB, the oilfield services giant, anticipates its second-quarter 2025 revenues and core profit to remain flat on a sequential basis, primarily due to an unexpected slowdown in drilling activity in Saudi Arabia and Latin America, per a Reuters report. According to the report, CEO Olivier Le Peuch provided the updated outlook during the J.P. Morgan Energy, Power & Renewables Conference in New York. He noted that actual field activity in the quarter has diverged from the company's original assumptions, particularly in the Middle East and South America. According to Le Peuch, several drilling rigs were demobilized in Saudi Arabia and operations were paused at the Jafurah unconventional gas field. These developments contributed significantly to the softer-than-expected operational performance for the quarter. The Jafurah field, one of the largest shale gas developments outside the United States, has been central to SLB's regional business in recent years, making the pause especially impactful. Meanwhile, in Latin America, SLB reported a decline in short-cycle project activity, further pressuring top-line growth. Short-cycle operations, often associated with faster returns, have become increasingly sensitive to pricing and capital discipline, and the pullback in activity reflects shifting customer behavior in the region. Le Peuch cautioned that the company's margin profile will be affected in the second quarter due to what he described as an unfavorable geographical activity mix. The decline in higher-margin Middle Eastern and Latin American operations, coupled with cost rigidity in service delivery, is likely to weigh on profitability. As a result, SLB expects second-quarter EBITDA to come in flat quarter over quarter, falling slightly below its prior guidance. The CEO also highlighted geopolitical risk in the region, stating that the company's current forecast assumes no disruptions to operations in the Persian Gulf amid ongoing tensions. Any escalation could pose additional downside risks. Despite the operational headwinds, SLB reaffirmed its commitment to its capital return program. The company still plans to return at least $4 billion to shareholders in 2025, signaling confidence in its overall financial resilience and long-term strategic positioning. SLB currently carries a Zack Rank #3 (Hold). Investors interested in the energy sector may look at a few better-ranked stocks like Subsea 7 S.A. SUBCY, W&T Offshore, Inc. WTI and Oceaneering International, Inc. OII. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while W&T Offshore and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore. The Zacks Consensus Estimate for SUBCY's 2025 EPS is pegged at $1.31. The company has a Value Score of A. W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability, and significant untapped reserves. The company's acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B. Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability. The Zacks Consensus Estimate for OII's 2025 EPS is pegged at $1.79. The company has a Value Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Subsea 7 SA (SUBCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
25-04-2025
- Business
- Yahoo
Schlumberger CEO Warns Macro Uncertainty May Hit Demand, Commits To Protect Margins And Cash Flow
Schlumberger N.V. (NYSE:SLB) shares are trading lower on Friday after the company reported worse-than-expected first-quarter 2025 results. Revenue declined 3% year over year to $8.49 billion, missing estimates of $8.59 billion. Adjusted EPS slid 4% to 72 cents, missing the consensus of 74 cents. North America revenue rose 8% YoY to $1.72B, driven by digital, subsea, and data center sales, but fell 2% sequentially on lower drilling activity. International revenue declined 5% year-over-year to $6.73 billion, as revenue in Latin America fell 10% YoY, driven primarily by reduced drilling activity in Mexico. Also Read: Revenue by Division: Digital & Integration $1.006 billion (+6% YoY); Reservoir Performance $1.70 billion (-1% YoY); Well Construction $2.98 billion (-12% YoY), and Production Systems $2.938 billion (+4% Y/Y). "First-quarter adjusted EBITDA margin was slightly up year on year despite softer revenue as we continued to navigate the evolving market dynamics," stated SLB Chief Executive Officer Olivier Le Peuch. Adjusted EBITDA was $2.02 billion for the quarter, down 1.8% YoY, and margin expanded 17 bps to 23.8%. The pretax segment operating margin contracted by 60 bps for the quarter to 18.3%. Operating cash flow for the quarter totaled $660 million compared to $327 million a year ago, and free cash flow was $103 million. Cash and cash equivalents totaled $3.897 billion as of March 31, 2025 "SLB is committed to returning more than 50% of its free cash flow to our shareholders, and we will materially exceed this target in 2025. We continue to have confidence in our ability to generate strong cash flow in the current environment and will return a minimum of $4 billion to shareholders through dividends and share repurchases this year," Le Peuch added. Dividend: Schlumberger declared a quarterly cash dividend of $0.285 per share, payable on July 10, 2025, to stockholders of record on June 4, 2025. "The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services. In this uncertain environment, we remain committed to protecting our margins, generating strong cash flow and delivering consistent value to our customers and shareholders in 2025," Le Peuch concluded. SLB completed its $2.3B accelerated share repurchase program on April 7, 2025, buying back 56.8 million shares at an average price of $40.51. Price Action: At the last check on Friday, SLB shares were trading lower by 0.04% at $34.92. Photo by Hadrian via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? SCHLUMBERGER (SLB): Free Stock Analysis Report This article Schlumberger CEO Warns Macro Uncertainty May Hit Demand, Commits To Protect Margins And Cash Flow originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Business Wire
25-04-2025
- Business
- Business Wire
SLB Announces First-Quarter 2025 Results; Remains Committed to Return a Minimum of $4 Billion to Shareholders in 2025
HOUSTON--(BUSINESS WIRE)--SLB (NYSE: SLB) today announced results for the first-quarter 2025. First-Quarter Results Adjusted EBITDA Margin Protected Despite Market Softness '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. '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. '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. '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. Core Benefiting from Late-Cycle Customer Spend and Growth in International Unconventional Markets '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. '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. Digital and AI Growth Increasingly Decoupled from Upstream Cycle Dynamics 'The energy industry is focused on efficiency and performance, and our customers are recognizing the opportunity to unlock value from their data. As a result, operators are increasing their digital capabilities, strengthening partnerships with technology companies, and investing in digital and AI solutions. 'This is translating into highly accretive revenue growth, and as a result, our quarterly digital revenue grew 17% year on year, contributing to a 6% increase in Digital & Integration revenue over that same period. 'When we designed our strategy around three engines of growth, we envisioned digital leading the second phase of revenue expansion, complementing our leading offering in the Core. Today, that vision is materializing, and we will continue to enhance our leadership in AI, cloud computing and digital operations,' Le Peuch said. Committing to Return a Minimum of $4 Billion to Shareholders in 2025 'SLB is committed to returning more than 50% of its free cash flow to our shareholders, and we will materially exceed this target in 2025. We continue to have confidence in our ability to generate strong cash flow in the current environment and will return a minimum of $4 billion to shareholders through dividends and share repurchases this year. 'The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services. In this uncertain environment, we remain committed to protecting our margins, generating strong cash flow and delivering consistent value to our customers and shareholders in 2025,' Le Peuch concluded. Other Events On February 2, 2025, SLB entered into an agreement to purchase the operations of Interactive Network Technologies, Inc. (INT), a global leader in energy data visualization. INT provides data visualization technology that empowers geoscientists, engineers and data scientists with the desktop and web-based domain data visualization required to make business and operational decisions. Incorporating this technology directly into the Delfi™ digital platform and Lumi™ data and AI platform will further enhance the ability of asset teams to accelerate data driven insights via a single, unified interface. Under the previously announced accelerated share repurchase (ASR) transaction, SLB entered into agreements to repurchase $2.3 billion of its common stock commencing on January 13, 2025, and ending no later than May 31, 2025. The ASR was completed on April 7, 2025, and SLB received a total of 56.8 million shares of its common stock, of which 47.6 million were received in January and the remaining 9.2 million shares were received in April. These shares were repurchased by SLB at an average price of $40.51, representing the volume-weighted average price of SLB's common stock during this period less a discount. In April 2024, SLB and ChampionX announced that they entered into a definitive agreement for SLB to purchase ChampionX. The combined portfolios will drive customer value through deep industry expertise and digital integration, as well as enhanced equipment life and production optimization. On April 10, 2025, SLB announced that the United Kingdom Competition and Markets Authority (CMA) has agreed to consider SLB's proposed actions to address concerns around the ChampionX acquisition as part of the CMA's Phase 1 review. SLB is pleased with this further progress and will continue its collaboration with the CMA and other regulators toward an anticipated closing in the second quarter or early third quarter of 2025. On April 17, 2025, SLB's Board of Directors approved a quarterly cash dividend of $0.285 per share of outstanding common stock, payable on July 10, 2025, to stockholders of record on June 4, 2025. International Revenue in Latin America of $1.49 billion declined 10% year on year primarily due to a significant reduction in drilling activity in Mexico. The decline was also driven by a temporary production interruption in our Asset Performance Solutions (APS) project in Ecuador due to pipeline disruption, partially offset by higher stimulation activity in Argentina. Sequentially, revenue decreased 9% due to lower drilling activity in Mexico, reduced APS revenue in Ecuador and seasonally lower revenue in Brazil following strong year-end production systems sales last quarter. These declines were partially offset by increased revenue in Argentina due to higher stimulation activity. Europe & Africa revenue of $2.23 billion decreased 4% year on year due to reduced offshore exploration, drilling and production activity in West Africa and lower activity in Russia. This decline was partially offset by increased revenue in North Africa and the North Sea. Sequentially, revenue declined 10% due to seasonally lower activity following strong year-end product and digital sales across the area in the fourth quarter of 2024. Revenue in the Middle East & Asia of $3.00 billion declined 3% year on year due to a meaningful reduction in drilling and stimulation activity in Saudi Arabia, lower production systems sales in Egypt and Australia, and reduced drilling activity in India. These declines were partially offset by significantly higher revenue in the United Arab Emirates and Kuwait. Sequentially, revenue declined 11% due to seasonally lower activity following strong year-end product and digital sales across the area in the fourth quarter of 2024. North America North America revenue of $1.72 billion increased 8% year on year due to higher digital sales and sales of subsea production systems offshore U.S., strong growth in data center infrastructure solutions, and increased intervention activity. These increases were partially offset by lower drilling revenue in U.S. land. Sequentially, revenue declined 2% due to lower drilling activity both on land and offshore North America, partially offset by higher revenue from data center infrastructure solutions. First-Quarter Results by Division Digital & Integration Digital & Integration revenue of $1.01 billion increased 6% year on year driven by 17% growth in digital revenue, supported by greater adoption of digital technologies and higher sales of exploration data, particularly offshore U.S. This increase was partially offset by lower APS revenue due to a temporary pipeline disruption on an APS project in Ecuador. Sequentially, revenue experienced a seasonal decline of 13% following strong year-end digital sales while APS revenue was lower in Ecuador due to the pipeline disruption. Digital & Integration pretax operating margin of 30% expanded 380 bps year on year, mostly due to improved profitability in digital, following higher uptake of digital technologies and higher sales of exploration data, and cost efficiency benefits. Sequentially, pretax operating margin decreased 784 bps due to seasonally lower sales of digital and exploration data as well as lower APS revenue. Reservoir Performance Reservoir Performance revenue of $1.70 billion declined 1% year on year with strong unconventional stimulation and intervention activity offset by lower evaluation and exploration activity across the international markets. Revenue was supported by increased stimulation and intervention activity in United Arab Emirates and Argentina, offset by lower revenue in Saudi Arabia, Russia, West Africa and East Asia. Sequentially, revenue declined 6% due to seasonal activity reductions in Europe & Africa and the Middle East & Asia. These declines were partially offset by strong stimulation activity in Latin America, mainly in Argentina, while North America revenue was essentially flat. Reservoir Performance pretax operating margin of 17% decreased 311 bps year on year and 391 bps sequentially due to reduced profitability from lower evaluation activity and project startup costs. Well Construction Well Construction revenue of $2.98 billion declined 12% year on year reflecting lower drilling activity in Mexico, Saudi Arabia, U.S. land, India and offshore West Africa, partially offset by improved performance in United Arab Emirates, Kuwait, Argentina, North Africa and China. Sequentially, revenue was 9% lower due to seasonal activity reductions across all areas. Well Construction pretax operating margin of 20% declined 71 bps year on year and 106 bps sequentially. Reduced activity across North America and international markets contributed to the margin contraction, partially mitigated by the effects of cost efficiencies. Production Systems Production Systems revenue of $2.94 billion increased 4% year on year due to strong demand for surface production systems, completions and artificial lift along with strong growth in data center infrastructure solutions in North America. Sequentially, revenue declined 8% driven by seasonally lower sales of artificial lift, midstream and surface production systems and completions, partially offset by higher revenue from data center infrastructure solutions. Production Systems pretax operating margin of 16% increased 197 bps year on year due to improved profitability across a number of business lines driven by activity mix, execution efficiency and conversion of improved-price backlog. Sequentially, pretax operating margin increased by 34 bps due to cost efficiencies and improved profitability particularly in subsea production systems despite seasonally lower sales. Quarterly Highlights CORE Contract Awards SLB continues to win new contract awards that align with SLB's strengths in the Core. Notable highlights include the following: In Mexico, SLB has been awarded a major drilling contract by Australian independent Woodside Energy for its ultra-deepwater Trion development project. SLB will oversee the delivery of 18 ultra-deepwater wells using an integrated services approach and AI-enabled drilling capabilities to improve operational efficiency and well quality. The full scope of the contract includes digital directional drilling services and hardware, logging while drilling (LWD), surface logging, cementing, drilling and completions fluids, completions, and wireline services. Services will begin in early 2026 and will be managed through SLB's Performance Live™ digital service delivery centers. In Norway, SLB has announced an agreement between its OneSubsea™ joint venture and Vår Energi to deliver a sizeable subsea production systems work scope. This award leverages the existing strategic subsea partnership agreement between the two companies for standardized subsea equipment, supporting multiple upcoming oil and gas developments on the Norwegian Continental Shelf. Also in Norway, SLB, Aker BP, and StimWell Services have extended the Well Intervention and Stimulation Alliance for another five years. Formed in 2019 with the goal of boosting production in the Norwegian Continental Shelf, the alliance has set new benchmarks for safer, more efficient and cost-effective operations. Moving forward, the alliance aims to scale up digital transformation through deeper integration between subsurface and operational domains, expand the use of remote operations, and accelerate the deployment of new technologies. In Azerbaijan, bp awarded SLB a two-year contract extension for well construction measurements, fluids and well integrity services. This extension follows a previous three-year award and will run through April 2027. In the Kingdom of Saudi Arabia, Aramco awarded SLB a significant corporate purchase agreement for drilling fluid chemicals. The award covers a comprehensive portfolio, including innovative drilling fluid technologies and pioneering sustainable practices, such as transitioning from wooden pallets to reusable plastic pallets and introducing reusable bags for materials. In Australia, a consortium of offshore operators has awarded SLB a major service contract for exploration and appraisal, development drilling and plug and abandonment. The contract includes services such as directional drilling, measurement while drilling, LWD, mud logging, drilling fluid, cementing, solids control, wireline, drillstem testing and tubing-conveyed perforating. The contract has a confirmed scope of one year, with an option to renew for an additional two years. Technology and Innovation Notable technology introductions and deployment in the quarter include the following: SLB launched EWC™ electric well control technologies, which include the pressure on-demand BOP control system, replacing traditional hydraulic systems with an electric power system to reduce capital and operating costs while enhancing the performance and safety of drilling operations. The first EWC technology enables precise, real-time control and monitoring of BOPs (blowout preventers) onshore and offshore, leveraging industrial internet of things (IIoT) components for instant pressure readouts without conventional gauges. This will help customers make better-informed decisions about the operation and maintenance of the well control system. SLB introduced NovoSphere™, the industry's only sourceless formation evaluation LWD service, delivering accurate formation density and porosity measurements without a chemical radioactive source. Advanced hardware and digital modeling enable sourceless density measurements for enhanced precision and accuracy across various lithologies. Combined with SLB's high-speed telemetry system, the NovoSphere service transmits high-quality formation evaluation data to the surface in real time, enabling rapid and informed decisions on optimizing well placement and improving drilling efficiency. In the United Arab Emirates, ADNOC has initiated its electric completions campaign across its Onshore fields, in partnership with SLB. This campaign is a joint commitment to scale up installations and implement high-volume deployment to address drilling challenges and enhance water management, monitoring, control, data transmission and production optimization. Following ADNOC Onshore's successful installation of six electric interval control valves in Bu Hasa field, the campaign will continue evaluating this technology's value with additional wells. In Egypt, SLB and ExxonMobil Egypt (Upstream) Limited uncovered a significant natural gas discovery in the offshore Mediterranean region using Quanta Geo™ photorealistic reservoir geology service. With this fast and accurate logging technology, SLB provided critical real-time and post-operation insights to complement the findings of the ExxonMobil team. In India, SLB and Cairn Oil & Gas, Vedanta Ltd., successfully implemented the low-temperature OneSTEP EF™ sandstone stimulation solution in its western offshore field to solve productivity challenges caused by traditional acid treatments and stabilization fluids. This innovative low temperature, single-stage sandstone acidizing system improved operational efficiency by reducing fluid volume, storage needs and freshwater use. The treatment led to a remarkable 360% increase in oil production without water cut. In Kuwait's Burgan Field, SLB and Kuwait Oil Company (KOC) significantly boosted production while reducing costs using the SLB Hi-Ex™ cement platform. This solution provided permanent zonal isolation, eliminating a 94% water cut and increasing productivity by 198% after reperforation. This success marks a major step forward in production enhancement and transforms KOC's workover planning. The cost-effective approach minimizes intervention time and expenses by avoiding a workover rig for similar wells in the field. 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: In Kuwait, KOC has awarded SLB a five-year contract to support its Kuwait Integrated Digital Field project. This initiative aims to develop a unified digital infrastructure that connects all parties and phases from planning to implementation, using advanced workflows and automation. SLB will deploy artificial intelligence (AI) and machine learning to deliver trend recognition and diagnostics automation. The Pipesim™ steady-state multiphase flow simulator will provide real-time rate estimation and evaluate production optimization scenarios. SLB announced a partnership with Shell to deploy Petrel™ subsurface software across its assets worldwide. The adoption of Petrel software is designed to increase digital capabilities and drive operating cost efficiencies. Shell will use Petrel software powered by advanced AI to deliver seismic interpretation workflows. The deployment aims to standardize infrastructure and workflows and accelerate scalable digital solutions, helping to improve cost operating efficiencies. SLB recently launched OptiSite™ facility, equipment and pipeline solutions, which will enable end-to-end oversight of an entire production network. The cloud-based solutions pair digital twins with AI to rapidly transform comprehensive data streams. This will allow predictive and advisory insights for individual users tailored to their own role and responsibility. It will help customers to make smarter and more proactive decisions on facility performance and emissions control, including process optimization, asset health and reliability, and pipeline integrity. OptiSite solutions are available on SLB's cloud-based Delfi digital platform and use the recently launched Lumi data and AI platform to provide continuous access to operational data, including from legacy systems and advanced AI models. In Argentina, YPF has awarded SLB a contract for production operations optimization software. In the substantial Vaca Muerta shale gas asset, YPF's surface facilities team will use Olga™ dynamic multiphase flow simulator to eliminate surface production bottlenecks during pipeline and facility upgrades. In the United Republic of Tanzania, Zanzibar Petroleum Regulatory Authority (ZPRA) awarded SLB a five-year contract to support prospect generation using Petrel subsurface software for geophysical interpretation. This integrated solution will enhance ZPRA's technical workflows while providing the flexibility to scale with advanced functionalities as needed. By leveraging Petrel software, ZPRA can drive more informed exploration decisions and maximize asset potential. In Egypt, SLB has signed a master agreement with the Egyptian General Petroleum Corporation (EGPC) to introduce intelligent DrillOps™ on-target well delivery solutions and well analytics. Under this agreement, SLB will provide a suite of advanced digital solutions to EGPC and operators in Egypt. These solutions are designed to optimize well delivery by leveraging real-time data and AI-driven insights to improve decision-making processes, increase efficiency, and minimize nonproductive time. In the United Arab Emirates, Dragon Oil Holdings Limited has signed a contract with SLB to implement the Dataiku AI platform across its global operations. Leveraging SLB's deep domain expertise and the platform's advanced capabilities, this collaboration aims to support Dragon Oil's strategic goals in production optimization, cost reduction and risk mitigation across all managed assets. The scope includes the integration of enterprise data sources from Dragon Oil's assets, along with training and upskilling of its petrotechnical experts. Additionally, SLB will deploy ready-to-use solutions across subsurface, drilling and production domains, incorporating advanced and secure generative AI solutions for end users. In Malaysia, Mubadala Energy (SK 320) Ltd, a Mubadala Energy company, awarded SLB a three-year digital transformation contract for intelligent production and health, safety and environment workflows. SLB will deploy its Agora™ edge AI and IoT solutions and integrate all collected data into the Lumi platform's Operations Data Foundation (powered by Cognite Data Fusion), enabling advanced analytics and scalability. The project focuses on AI-driven personal protective equipment monitoring, worker safety and fatigue management for production operations. It also tracks greenhouse gas emissions to enhance sustainability. In Indonesia, PT. Pertamina (Persero), a state-owned oil and natural gas corporation, awarded SLB a three-year contract to deploy AI, generative AI and machine learning solutions via the Lumi data and AI platform. The platform, which will be managed by Pertamina Digital Hub, a division operating under PT. Pertamina (Persero), will significantly enhance Pertamina's decision-making processes, automate several operational tasks and uncover hidden patterns and trends within its data. By leveraging these advanced technologies, Pertamina Digital Hub aims to drive continuous innovation, streamline processes to improve efficiency and, ultimately, gain a sustainable competitive advantage. 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 Norway, SLB Capturi™, in collaboration with Aker Solutions, has been awarded an engineering, procurement, construction, installation and commissioning contract from Hafslund Celsio AS to deliver a carbon capture solution at its waste-to-energy facility in Klemetsrud, Oslo. The contract award includes delivery of a carbon capture plant, liquefaction system, temporary storage, and a loading facility at the waste incineration site. It also includes an intermediate CO 2 storage and ship loading system at Oslo harbor, from where the CO 2 will be transported to the Northern Lights permanent storage facility on the Norwegian Continental Shelf. When operational, the carbon capture plant is expected to capture 350,000 metric tons of CO 2 annually. In the Netherlands, SLB Capturi has completed commissioning and is handing over its modular carbon capture plant at Twence's Hengelo waste-to-energy facility. The new plant has the capacity to capture up to 100,000 metric tons of CO 2 per year, which will be used in applications for the horticulture and food and beverage sectors. The carbon capture plant is based on SLB Capturi's standard, modular Just Catch™ design, which reduces onsite installation and outfitting work — providing a more cost-efficient and easier-to-deploy option compared with other market alternatives. SLB and geothermal developer Star Energy Geothermal, a subsidiary of Indonesia's largest renewable energy company Barito Renewables, announced a collaboration agreement to accelerate advanced technologies for geothermal asset development. The collaboration will combine Star Energy Geothermal's extensive knowledge of geothermal development with SLB's decades of experience developing and industrializing technology solutions for the energy sector. Working closely together, SLB and Star Energy Geothermal aim to deploy technologies that shift the economics of conventional geothermal projects and improve recovery rates of geothermal assets. In Canada, SLB is working with DEEP Earth Energy Production Corp. to develop Canada's first next-generation geothermal project in southeast Saskatchewan. This collaboration will leverage advanced horizontal drilling and production enhancement technologies to generate up to 30 megawatts of emissions-free baseload power. The project's innovative engineering design and integrated development model unite developers, technology providers and infrastructure partners to expand the potential of geothermal energy. In Romania, ROMGAZ has awarded SLB a contract to convert depleted gas fields into CO₂ storage facilities, supporting both ROMGAZ's decarbonization goals and the European Union's climate objectives. Leveraging its expertise in subsurface characterization and reservoir engineering, SLB will develop a comprehensive framework to identify suitable CO₂ storage sites, considering geological, technical and regulatory factors. This initiative aims to transform depleted gas reservoirs into viable CO₂ storage solutions and provides essential support for industries with decarbonization mandates, such as fertilizer, cement and glass production. FINANCIAL TABLES Condensed Consolidated Statement of Income (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. Expand Condensed Consolidated Balance Sheet Liquidity (Stated in millions) Components of Liquidity Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Cash and short-term investments $3,897 $4,669 $3,491 Short-term borrowings and current portion of long-term debt (3,475) (1,051) (1,430) Long-term debt (10,527) (11,023) (10,740) Net Debt (1) $(10,105) $(7,405) $(8,679) Details of changes in liquidity follow: Three Three Months Months Periods Ended March 31, 2025 2024 Net income $829 $1,098 Depreciation and amortization (2) 640 600 Stock-based compensation expense 91 100 Change in working capital (937) (1,475) Other 37 4 Cash flow from operations $660 $327 Capital expenditures (398) (399) APS investments (108) (121) Exploration data capitalized (51) (29) Free cash flow (3) 103 (222) Dividends paid (386) (357) Stock repurchase program (2,300) (270) Proceeds from employee stock plans 113 115 Business acquisitions and investments, net of cash acquired (37) (27) Purchases of Blue Chip Swap securities (75) (52) Proceeds from sale of Blue Chip Swap securities 63 34 Taxes paid on net settled stock-based compensation awards (53) (78) Other (20) 58 Increase in net debt before impact of changes in foreign exchange rates (2,592) (799) Impact of changes in foreign exchange rates on net debt (108) 96 Increase in Net Debt (2,700) (703) Net Debt, beginning of period (7,405) (7,976) Net Debt, end of period $(10,105) $(8,679) Expand (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) Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs and APS investments. (3) '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. Expand Charges & Credits In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), this first-quarter 2025 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). * Does not add due to rounding. (1) Classified in Restructuring & other in the Condensed Consolidated Statement of Income. (2) Classified in Merger & integration in the Condensed Consolidated Statement of Income. (3) $14 million of these charges were classified in Cost of revenue in the Condensed Consolidation Statement of Income with the remaining $11 million classified in Merger & integration. (4) Classified in Interest & other income in the Condensed Consolidated Statement of Income. Expand Divisions (Stated in millions) Three Months Ended Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Revenue Income Before Taxes Revenue Income Before Taxes Revenue Income Before Taxes Digital & Integration $1,006 $306 $1,156 $442 $953 $254 Reservoir Performance 1,700 282 1,810 370 1,725 339 Well Construction 2,977 589 3,267 681 3,368 690 Production Systems 2,938 475 3,197 506 2,818 400 Eliminations & other (131) (96) (146) (81) (157) (34) Pretax segment operating income 1,556 1,918 1,649 Corporate & other (179) (177) (191) Interest income (1) 36 36 34 Interest expense (1) (144) (128) (110) Charges & credits (2) (206) (262) (25) $8,490 $1,063 $9,284 $1,387 $8,707 $1,357 Expand (1) Excludes amounts which are included in the segments' results. (2) See section entitled 'Charges & Credits' for details. Expand Supplementary Information Frequently Asked Questions 1) What is the capital investment guidance for the full-year 2025? Capital investment (consisting of capex, exploration data costs and APS investments) for the full-year 2025 is expected to be approximately $2.3 billion. This amount is excluding any impact from the anticipated closure of the announced acquisition of ChampionX. Capital investment for the full-year 2024 was $2.6 billion. 2) What were cash flow from operations and free cash flow for the first quarter of 2025? Cash flow from operations for the first quarter of 2025 was $660 million and free cash flow was $103 million. 3) What was included in 'Interest & other income' for the first quarter of 2025? 'Interest & other income' for the first quarter of 2025 was $78 million. This consisted of interest income of $36 million and earnings of equity method investments of $42 million. 4) How did interest income and interest expense change during the first quarter of 2025? Interest income of $36 million for the first quarter of 2025 decreased $9 million sequentially. Interest expense of $147 million increased $16 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 first quarter of 2025? The ETR for the first quarter of 2025, calculated in accordance with GAAP, was 22.0% as compared to 19.4% for the fourth quarter of 2024. Excluding charges and credits, the ETR for the first quarter of 2025 was 19.4% as compared to 18.7% for the fourth quarter of 2024. 7) How many shares of common stock were outstanding as of March 31, 2025, and how did this change from the end of the previous quarter? There were 1.360 billion shares of common stock outstanding as of March 31, 2025, and 1.401 billion shares outstanding as of December 31, 2024. Expand 8) What was the weighted average number of shares outstanding during the first quarter of 2025 and fourth 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 1.366 billion during the first quarter of 2025 and 1.406 billion during the fourth 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. Expand (Stated in millions) First Quarter 2025 Fourth Quarter 2024 Weighted average shares outstanding 1,366 1,406 Unvested restricted stock 14 13 Assumed exercise of stock options - 1 Average shares outstanding, assuming dilution 1,380 1,420 Expand 9) What was SLB's adjusted EBITDA in the first quarter of 2025, the fourth quarter of 2024, and the first quarter of 2024? What was SLB's adjusted EBITDA margin for those periods? SLB's adjusted EBITDA was $2.020 billion in the first quarter of 2025, $2.382 billion in the fourth quarter of 2024, and $2.057 billion in the first quarter of 2024. SLB's adjusted EBITDA margin was 23.8% in the first quarter of 2025, 25.7% in the fourth quarter of 2024, and 23.6% in the first quarter of 2024. Expand (Stated in millions) First Quarter 2025 Fourth Quarter 2024 First Quarter 2024 Net income attributable to SLB $797 $1,095 $1,068 Net income attributable to noncontrolling interests 32 23 30 Tax expense 234 269 259 Income before taxes $1,063 $1,387 $1,357 Charges & credits 206 262 25 Depreciation and amortization 640 648 600 Interest expense 147 131 113 Interest income (36) (46) (38) Adjusted EBITDA $2,020 $2,382 $2,057 Revenue $8,490 $9,284 $8,707 Adjusted EBITDA margin 23.8% 25.7% 23.6% Expand 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 first quarter of 2025, the fourth quarter of 2024, and the first quarter of 2024? The components of depreciation and amortization expense for the first quarter of 2025, the fourth quarter of 2024, and the first quarter of 2024 were as follows: Expand 11) What Divisions comprise SLB's Core business and what were their revenue and pretax operating income for the first quarter of 2025, the fourth quarter of 2024, and the first quarter of 2024? 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 first quarter of 2025, the fourth quarter of 2024, and the first quarter of 2024 are calculated as follows: Expand 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 Conference Call Information SLB will hold a conference call to discuss the earnings press release and business outlook on Friday, April 25, 2025. 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 (833) 470-1428 within North America, or +1 (404) 975-4839 outside of North America, approximately 10 minutes prior to the call's scheduled start time, and provide the access code 114893. At the conclusion of the conference call, an audio replay will be available until May 2, 2025, by dialling +1 (866) 813-9403 within North America, or +1 (929) 458-6194 outside of North America, and providing the access code 541892. The conference call will be webcasted simultaneously at on a listen-only basis. A replay of the webcast will also be available at the same website until May 2, 2025. Forward-Looking Statements This first-quarter 2025 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; tariffs; 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 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 ( 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 can obtain free copies of the Form S-4 and the proxy statement/prospectus and other documents (if and when available) containing important information about SLB, ChampionX and the proposed transaction, through the website maintained by the SEC at Copies of the documents filed with, or furnished to, the SEC by SLB will be available free of charge on SLB's website at Copies of the documents filed with, or furnished to, the SEC by ChampionX will be available free of charge on ChampionX's website at The information included on, or accessible through, SLB's or ChampionX's website is not incorporated by reference into this communication.
