Q124 SLB earnings

earnings summary

Earnings Results: • Year-on-year revenue grew 13% and EBITDA grew in the mid-teens, in line with full year financial ambitions • Adjusted EBITDA margins expanded year-on-year for the 13th consecutive quarter • International revenue grew double digits excluding Aker contribution, led by 29% growth in Middle East and Asia • North America revenue declined 6% year-on-year due to weaker gas prices and capital discipline • Digital Integration grew double digits year-on-year; expected to grow high teens for full year

Future Guidance: • Remain confident in full year financial guidance with strong international activity offsetting slower North America growth • Expect further growth in strengthening production and recovery market as operators maximize efficiency and longevity of assets • Anticipate Q2 sequential revenue growth in mid-single digits internationally and low single digits in North America • Expect to expand Q2 adjusted EBITDA margins by 75 to 100 bps • For full year, expect digital revenue to grow in high teens

The Q1 2024 earnings call highlighted SLB’s strong start to the year, with revenue and EBITDA growth in line with full year ambitions. The company is benefiting from the breadth, resilience and longevity of the current upcycle, driven by strong energy fundamentals, growing demand and a focus on energy security. This is particularly evident in the Middle East and global offshore markets where SLB has a strong position.

While North America activity remained soft, international growth was broad-based across regions. SLB is seeing opportunities as customers prioritize efficiency, lower costs, faster time-to-production, and lower carbon solutions. The company is innovating through integration, fit-for-basin technologies and digital to unlock value.

Looking ahead, SLB remains confident in its full year guidance, anticipating the continuation of strong international momentum, especially in Middle East, Asia and offshore. It also expects growth in the production and recovery market as operators focus on maximizing asset value. For Q2, SLB guided to solid sequential growth and margin expansion.

Notable quotes: “I’m very pleased with our strong start to 2024. Year-on-year, revenue grew 13% and EBITDA grew in the mid-teens, in line with our full year financial ambitions.” - Olivier Le Peuch, CEO

”We’re in the midst of a unique [indiscernible] cycle, characterized by strong market fundamentals, growing demand and a deeper focus on energy security. I described on several occasions, this cycle continued to display breadth, resilience and longevity.” - Olivier Le Peuch, CEO