SLB (NYSE: SLB) reported robust financial results for the fourth quarter and full year of 2024, demonstrating resilience and strategic positioning in the energy sector.
The company’s fourth-quarter revenue reached US$9.28 billion, representing a 3 per cent year-on-year increase and slightly exceeding market expectations.
The energy infrastructure company’s earnings per share (EPS) of US$0.92 surpassed the analyst forecast of US$0.90, marking a positive surprise of approximately 2.2 per cent.
This performance was complemented by a significant stock price surge of 7.65 per cent following the earnings announcement, reflecting investor confidence in the company’s strategic initiatives.
Highlighting the company’s financial strength, SLB generated US$1.63 billion in free cash flow during the fourth quarter and US$4 billion for the full year.
The company strategically reduced its net debt by US$1.1 billion, bringing it to US$7.4 billion — the lowest level since the first quarter of 2016.
In a move to reward shareholders, SLB’s board approved a 3.6 per cent increase in the quarterly cash dividend to US$0.285 per share and initiated an accelerated share repurchase program of US$2.3 billion.
CEO Olivier Lapuche highlighted the company’s focus on developing growth pathways beyond traditional oil and gas, particularly in low-carbon and digital infrastructure markets.
The company’s full-year revenue reached US$36.3 billion, representing a 10 per cent year-on-year growth.
International markets were a key driver, with the Middle East experiencing a remarkable 19 per cent year-on-year growth.
Digital revenue showed particular strength, growing 20 per cent year-on-year and supported by significant advancements in Cloud, AI, and emerging technologies.
Looking ahead to 2025, SLB projects flat revenue compared to 2024, with adjusted EBITDA expected to remain at or above current levels.
The company anticipates an activity rebound in the second quarter, particularly in international markets.
These results underscore SLB’s strategic adaptability, technological innovation, and commitment to delivering value to shareholders in a dynamic energy landscape.
