Investing.com — SLB reported fourth-quarter earnings that beat analyst expectations, sending shares up 4.1% in premarket trading. The oilfield services giant posted earnings per share, excluding charges and credits, of $0.92, up 7% year-over-year and ahead of the $0.90 consensus estimate. Revenue rose 3% to $9.28 billion, also topping forecasts.
The company’s strong performance was driven by growth in its Digital & Integration and Production Systems segments. Digital & Integration revenue increased 10% year-over-year to $1.16 billion, while Production Systems revenue grew 9% to $3.20 billion.
“2024 was a strong year for SLB as we successfully navigated evolving market conditions to deliver revenue and EBITDA growth, margin expansion and solid free cash flow,” said SLB CEO Olivier Le Peuch.
International markets continued to be a bright spot, with full-year international revenue up 12% compared to 2023. The Middle East & Asia region led growth with an 18% increase.
Looking ahead, Le Peuch expressed confidence in the long-term oil and gas investment outlook, citing global economic growth, energy security concerns, and rising demand from AI and data centers.
SLB also announced a 3.6% increase in its quarterly dividend to $0.285 per share. Additionally, the company entered into $2.3 billion in accelerated share repurchase agreements, signaling its belief that the stock is undervalued.
For the full year 2024, SLB reported revenue of $36.29 billion, up 10% from 2023. Adjusted earnings per share for the year came in at $3.41, a 14% increase from the prior year.
The company generated $3.99 billion in free cash flow for 2024 and returned $3.27 billion to shareholders through dividends and share repurchases.
