SLB (NYSE: SLB) today announced results for the fourth-quarter and full-year 2023.

Fourth-quarter revenue of $8.99 billion increased 8% sequentially and 14% year on year

Fourth-quarter GAAP EPS of $0.77 decreased 1% sequentially and increased 4% year on year

Fourth-quarter EPS, excluding charges and credits, of $0.86 increased 10% sequentially and 21% year on year

Fourth-quarter cash flow from operations was $3.02 billion and free cash flow was $2.28 billion

Board approved a 10% increase in quarterly cash dividend to $0.275 per share

Full-year revenue of $33.14 billion increased 18% year on year

Full-year GAAP EPS of $2.91 increased 22% year on year

Full-year EPS, excluding charges and credits, of $2.98 increased 37% year on year

Full-year net income attributable to SLB of $4.20 billion increased 22% year on year

Full-year adjusted EBITDA of $8.11 billion increased 25% year on year

Full-year cash flow from operations was $6.64 billion and free cash flow was $4.04 billion

Impressive Fourth-Quarter and Full-Year Performance

SLB CEO Olivier Le Peuch commented, 'We have concluded a remarkable year marked by widespread revenue growth, margin expansion, and exceptional free cash flow. Year on year, we grew revenue and EBITDA 18% and 25%, respectively, and we delivered $4.0 billion of free cash flow-allowing us to reduce net debt by $1.4 billion and return $2.0 billion to shareholders this year through dividends and stock repurchases. These results showcase our continued ability to deliver superior earnings, generate impressive cash flows, and maintain a strong balance sheet.

'Sequentially, fourth-quarter revenue rose 8%, EPS (excluding charges and credits) increased 10% to $0.86, and adjusted EBITDA margins reached another cycle high. Notably, the acquired Aker subsea business accounted for approximately 70% of the sequential revenue growth, while the legacy portfolio continued its growth trajectory in the international markets.

'Compared to the same quarter last year, international revenue outpaced North America, growing 18% while North America was relatively flat. Excluding the acquired Aker subsea business, international revenue grew 10% year on year, marking the 10th consecutive quarter of double-digit growth. Our global pretax segment operating margin increased year on year for the 12th consecutive quarter, and we exited the year with a quarterly international margin reaching a new high in the cycle.'

A Remarkable Year of Broad, Resilient, and Durable Growth

'We concluded the year with 37% growth in EPS (excluding charges and credits) and expanded adjusted EBITDA margin by 147 basis points (bps). Additionally, we generated $6.64 billion in cash flow from operations and delivered return on capital employed (ROCE) of 16%, the highest level since 2014-a result of our returns-focused strategy.

'Our strong full-year performance was fueled by substantial international growth, with approximately 90% of our international GeoUnits posting year-on-year increases, complemented by sustained performance in North America.

'International revenue grew 20% year on year-by more than $4 billion-and pretax segment operating margins expanded by 239 bps. Notably, we achieved our highest-ever revenue in the Middle East, led by impressive growth in Saudi Arabia, the United Arab Emirates, and Egypt & East Mediterranean GeoUnits.

'In the offshore basins, we benefited from long-cycle developments, capacity expansions, and exploration and appraisal activities with remarkable growth in Brazil and Angola and very solid increases in the US Gulf of Mexico, Guyana, and Norway.

'In North America, while activity moderated as expected in the second half of the year, revenue increased by 12% year on year, outpacing the rig count. This outperformance was driven by our technology-leveraged portfolio in both US land and the US Gulf of Mexico.

'On a divisional basis, our Core business-comprising Reservoir Performance, Well Construction, and Production Systems-accelerated, growing revenue 20% year on year and expanding pretax segment operating margin 277 bps.

'Digital & Integration revenue increased 4% year on year. This was led by Digital, which continued strong growth momentum, delivering more than $2 billion in revenue while APS revenue declined. Our success in Digital was driven by further adoption of Delfi technology and customers embracing our connected and autonomous drilling, data, and AI solutions.

'We also saw continued adoption of our Transition Technologies portfolio as customers look to enhance efficiency and reduce emissions. The imperative to operate more sustainably is translating into tangible investments by our customers, resulting in the portfolio generating more than $1.0 billion of revenue.

'We are also very pleased to see our strategic focus on customer centricity continue to translate into customer satisfaction, with our performance and value creation achieving recognition in various industry surveys.

'I am extremely proud of our full-year results, and I would like to thank the entire SLB team for delivering this outstanding performance.'

Further International Growth and Shareholder Returns Ahead

'As global energy demand continues to increase, international production is expected to play a key role in meeting supply through the end of the decade. Notably, we anticipate record investment levels in the Middle East extending beyond 2025, with significant expansion in Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait. Offshore remains another distinct attribute of this durable growth cycle, serving as an important source for production growth and capacity additions, and we expect strong activity to continue in Brazil, West Africa, the Eastern Mediterranean, the Middle East, and Southeast Asia.

'In the international environment, despite elevated geopolitical tensions in various regions, we do not anticipate a significant impact on the sector's overall activity, absent any escalation. Furthermore, we expect the long-cycle investments across the Middle East, global offshore, and gas resource plays to be largely decoupled from short-term commodity price fluctuations.

'In 2024, we will experience another year of strong growth driven by the international markets. Benefiting from these market dynamics, we foresee further growth led by Production Systems, strengthened by the additional subsea opportunities from our OneSubsea joint venture. Sustained momentum is expected in Reservoir Performance, accompanied by increased activity in Well Construction. Additionally, we expect continued customer adoption of our Digital business, particularly in our new technology platforms.

'Our performance and returns-focused strategy, combined with our differentiated market positioning and digital capabilities, will drive profitable growth and further margin expansion, setting a strong foundation for long-term outperformance.

'With confidence in the strength and longevity of the cycle and visibility into sustained strong cash flows, we are pleased to announce that our Board of Directors has approved a 10% increase to our quarterly dividend. Additionally, we plan to increase share repurchases in 2024, visibly enhancing returns to shareholders for the full year.

'With a clear strategy, a uniquely positioned portfolio, and the right team in place, we look forward to delivering value for our customers and our shareholders in the years ahead.'

Other Events

During the quarter, SLB repurchased 1.8 million shares of its common stock at an average price of $54.46 per share for a total purchase price of $100 million.

On January 18, 2024, SLB's Board of Directors approved a 10% increase in SLB's quarterly cash dividend from $0.250 per share of outstanding common stock to $0.275 per share, beginning with the dividend payable on April 4, 2024, to stockholders of record on February 7, 2024.

About SLB

SLB (NYSE: SLB) is a global technology company driving energy innovation for a balanced planet. With a global presence in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

Contact:

Tel: +1 (713) 375-3535

Email: investor-relations@slb.com

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