Schlumberger (NYSE:), a leading oilfield services company, reported first-quarter earnings per share (EPS) of $0.75, meeting analysts’ estimates, according to a recent press release. The company’s revenue reached $8.71 billion, slightly above the consensus estimate of $8.7 billion, marking a 13% increase from the same quarter last year.
Despite in-line earnings, SLB shares saw a modest decline of 1.2% following the announcement.
CEO Olivier Le Peuch highlighted the company’s robust year-over-year growth, with a notable 19% increase in adjusted EPS and a 15% increase in adjusted EBITDA. Le Peuch attributed about half of the revenue growth to Aker’s subsea business, part of the OneSubsea joint venture, and highlighted the company’s strong performance in the international market, particularly in the Middle East and Asia regions and Europe and Africa.
Despite a weaker North American market, international revenues grew 18% year over year, with the Middle East and Asia region recording a significant increase of 29%. The company’s core businesses of Reservoir Performance, Well Construction and Production Systems also saw substantial growth, with production systems revenue up 28% year-on-year, driven by the acquisition of the company’s subsea business. Aker.
Looking ahead, Schlumberger remains confident in the global revenue growth outlook for 2024, expecting a seasonal recovery in activity in the Northern Hemisphere and continued robust international activity. The company reaffirmed its full-year mid-teens EBITDA growth guidance and announced ambitious plans to return $7 billion to shareholders over the next two years, with a target of $3 billion in 2024 and 4 billion dollars in 2025.
Le Peuch expressed optimism for the future, citing strong market fundamentals in the oil and gas sector and the company’s strategic position to take advantage of the growing emphasis on emissions reduction and low-carbon technologies. He also mentioned the planned acquisition of ChampionX Corporation, which is expected to enhance Schlumberger’s production and recovery portfolio.
During the quarter, Schlumberger repurchased 5.4 million shares of common stock. Despite the slight decline in shares post-earnings, Schlumberger’s stable performance and strategic initiatives signal positive momentum for the coming quarters.