SLB, a leading oilfield services company, has announced its first-quarter 2024 results, showing “robust” revenue growth and strategic plans to return US$7 billion to shareholders over the next two years.
Commenting, SLB Chief Executive Officer Olivier Le Peuch remarked, “We have had an exciting start to the year with our announced agreement to acquire ChampionX Corporation (ChampionX), which will bolster our production and recovery portfolio.”
SLB’s key highlights from the first quarter include a 13% increase in revenue (US$8.71 billion) compared to the same period last year, with earnings per share (EPS) rising by 19% to $0.75. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 15%, marking the 13th consecutive quarter of year-on-year expansion in adjusted EBITDA margin.
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SLB’s revenue growth was primarily driven by international markets, which saw an 18% increase, compensating for a softer North American market where revenue declined by 6%. Notably, SLB’s Core business, comprising Reservoir Performance, Well Construction, and Production Systems, achieved a revenue growth of 13% year-on-year.
Le Peuch said, “Our journey of margin expansion continues to be driven by tight service and equipment capacity internationally, increased technology adoption, and further operational efficiency.”
Looking ahead, SLB remains confident in its global revenue growth outlook for 2024, expecting a seasonal rebound in activity in the Northern Hemisphere coupled with robust activity internationally. The company anticipates returning US$3 billion to shareholders in 2024 and an additional US$4 billion in 2025, leveraging its strong start to the year and the anticipated contribution of the ChampionX acquisition.
Le Peuch concluded, “The dynamics of the cycle continue to reinforce our strategy and outlook for the future. I look forward to continuing to deliver exceptional service for our customers and results for our stockholders throughout the year.”
SLB says it is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry and is a major service provider to ExxonMobil Guyana, providing technical support for its operations in the Stabroek Block. In 2017, then named Schlumberger decided to invest significantly and established a long-term footprint in Guyana through its US$75 million oil services facility base at Houston.
