Schlumberger (NYSE: NYSE:SLB) reported robust third-quarter financial results, with both revenue and adjusted EBITDA growing sequentially and year-on-year. The company highlighted strong growth in its international revenue, which reached its highest level since 2015, primarily driven by robust growth in the Middle East & Asia.
According to InvestingPro data, Schlumberger has a market cap of 82.83B USD and a P/E ratio of 20.96 as of Q3 2023. The company's revenue for the same period was 32.02B USD, marking a growth of 21.12% from the previous year.
Key takeaways from the call include:
- Schlumberger reported strong performance across its Core, Digital, and New Energy business segments.
- The company is actively involved in over 20 carbon capture, utilization, and storage (CCUS) projects globally.
- Schlumberger expects continued revenue growth in the fourth quarter, driven by Digital sales and seasonal product and equipment sales.
- The company expects to achieve its full-year financial ambitions, with revenue expected to increase more than 15% and EBITDA growing in the mid-20s.
In its Core business, Schlumberger achieved strong performance across its divisions, driven by portfolio diversity and industry-leading technology. The company also expanded its footprint in the offshore market through a partnership with Aker Solutions and Subsea7.
In the Digital business, Schlumberger saw increased adoption of its platforms, including Delfi, connected, and autonomous drilling solutions. The company also launched an IoT-enabled methane point instrument to help clients reduce methane emissions.
In the New Energy business, Schlumberger is actively involved in over 20 carbon capture, utilization, and storage (CCUS) projects globally.
Looking ahead, Schlumberger expects continued revenue growth in the fourth quarter, driven by digital sales and seasonal product and equipment sales. The company also expects to achieve its full-year financial ambitions, with revenue expected to increase more than 15% and EBITDA growing in the mid-20s.
InvestingPro Tips reveals that Schlumberger has been consistently increasing its earnings per share and has maintained dividend payments for 53 consecutive years. These factors, combined with the company's moderate level of debt and low price volatility, make it a stable choice for investors.
During the earnings call, Schlumberger reported positive results for its Reservoir Performance, Well Construction, and Production Systems divisions. The company generated $1.7 billion of cash flow from operations and reduced net debt by $731 million. They also repurchased 2.6 million shares of stock and plan to return $2 billion to shareholders this year.
Schlumberger's CEO, Olivier Le Peuch, expressed confidence in the company's ability to succeed in the North American market despite ongoing consolidation among customers. He highlighted the company's technology performance, integration capabilities, and digital offerings as key factors driving its success. The company expects to continue expanding margins in the core business in the fourth quarter and beyond.
Le Peuch also stated that the company expects around $1.5 billion of EBITDA improvement in 2024, but specific details will be provided in the fourth-quarter conference call. He remains positive about the exploration market, particularly in offshore regions, and sees broad opportunities for growth in various geographies and basins.
Overall, Schlumberger's strong Q3 results and positive outlook for Q4 suggest continued growth and profitability for the company. For more insights like these, consider exploring the additional 9 tips available on InvestingPro.
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