SLB announced its third-quarter 2024 results, reporting revenue of $9.159 billion, which grew 10% year-on-year but missed analyst consensus of $9.25 billion. Adjusted earnings per share came in at $0.89, an 8% increase year-on-year, surpassing analyst expectations of $0.88.
The Digital & Integration segment saw a 4% sequential revenue increase, with its digital business growing 25% year-on-year, and pretax operating margin expanding by 456 basis points sequentially to 36%. Production Systems revenue increased 3% sequentially and 31% year-on-year, with its pretax operating margin expanding 110 basis points sequentially to 17%.
SLB achieved an adjusted EBITDA margin of 25.6%, a 55-basis point sequential increase. The company generated $2.45 billion in cash flow from operations and $1.81 billion in free cash flow, enabling it to return nearly $900 million to shareholders through stock repurchases and dividends, bringing the year-to-date total to $2.38 billion.
The company accelerated its share repurchase program, now expecting to exceed its $3.0 billion commitment for the year. The Board of Directors approved a quarterly cash dividend of $0.275 per share, payable on January 9, 2025.
CEO Olivier Le Peuch noted that these results were achieved despite cautious spending by some international producers and subdued U.S. land activity. SLB anticipates sustained upstream investment, strong cash flows, and a full-year adjusted EBITDA margin at or above 25%.
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