Summary
SLB (formerly Schlumberger) has demonstrated a strong financial performance in 2022, marked by a 23% increase in revenue to $28.1 billion, driven by double-digit growth across all its divisions and geographical segments. This growth reflects a strategic focus on high-grading its portfolio, optimizing operations, and enhancing its go-to-market approach through its Basin organization. The company has successfully navigated the early stages of an energy sector upcycle, particularly in North America where it saw significant margin expansion and outperformance in drilling markets. International markets also showed resilience, with activity increasing in the second half of the year, positioning SLB to benefit from expected continued upstream investment by national oil companies. SLB is actively pursuing its transformation into a global technology company focused on energy innovation for a balanced planet. This includes investments in its core oil and gas services, alongside a growing emphasis on digital solutions and new energy technologies like carbon capture, hydrogen, and stationary energy storage. The company also made significant progress on its sustainability goals, reinforcing its commitment to a net-zero emissions target by 2050. Financially, SLB strengthened its balance sheet by reducing net debt and increased shareholder returns through a substantial dividend increase, signaling confidence in its strategic direction and future performance.
Financial Highlights
49 data points| Revenue | $28.09B |
| R&D Expenses | $634.00M |
| Operating Income | $5.01B |
| Interest Expense | $490.00M |
| Net Income | $3.44B |
| EPS (Basic) | $2.43 |
| EPS (Diluted) | $2.39 |
| Shares Outstanding (Basic) | 1.42B |
| Shares Outstanding (Diluted) | 1.44B |
Key Highlights
- 1Full-year 2022 revenue reached $28.1 billion, a 23% increase year-over-year, with all divisions and geographical areas experiencing double-digit growth.
- 2The company achieved significant margin expansion in North America, nearly doubling its pretax operating income and outperforming rig count growth.
- 3International revenue grew by 20% in 2022, with strong performance in the Middle East and a positive outlook due to expected upstream investment.
- 4SLB's Transition Technologies portfolio revenue grew over 30% year-on-year and is projected to exceed $1 billion in 2023, highlighting progress in decarbonization solutions.
- 5Net debt was reduced by $1.7 billion to $9.3 billion, its lowest level since Q2 2016, strengthening the balance sheet.
- 6Shareholder returns were enhanced through a 40% dividend increase in April 2022 and a further 43% increase announced for January 2023, with share buybacks resuming in Q1 2023.
- 7The company is strategically investing in 'New Energy' sectors, including carbon solutions, hydrogen, geothermal, stationary energy storage, and critical minerals.