01—Abstract
Summary
Summary of the 10-K filed January 22, 2025. Cited figures are marked; the original filing is the authoritative source.
SLB LIMITED/NV (SLB) reported strong financial performance for the fiscal year ended December 31, 2024, demonstrating resilience and strategic growth.
The company achieved a 10% year-over-year revenue increase to $36.3 billiona and a 12% rise in pretax segment operating income, driven by robust international performance, particularly in the Middle East & Asia and Europe & Africa regions. Digital & Integration revenue saw a significant 10% uplift, propelled by a 20% surge in digital services, highlighting the success of its digital transformation initiatives, including the Lumi™ data and AI platform and the Delfi™ offering. The company generated $6.6 billion in cash flow from operations and $4.0 billion in free cash flow, allowing for substantial returns to shareholders, including a 3.6% increase in the quarterly dividend and a $2.3 billion accelerated share repurchase program.
SLB is strategically positioned to capitalize on future energy demand growth, supported by its core businesses, expanding digital capabilities, and growing investments in New Energy sectors like decarbonization and critical minerals. The pending acquisition of ChampionX is expected to further enhance its production and recovery capabilities, adding resilience to its portfolio.
02—Key points
Key Highlights
- Full-year 2024 revenue increased 10% to $36.3 billion, with international revenue growing 12%.
- Digital & Integration revenue increased 10%, with digital services revenue up 20%, underscoring the success of digital transformation.
- Generated $6.6 billion in cash flow from operations and $4.0 billion in free cash flow in 2024.
- Returned $3.3 billion to shareholders in 2024 through dividends and share repurchases, with plans to increase this to at least $4 billion in 2025.
- Announced a 3.6% increase in quarterly dividend in January 2025 and entered into accelerated share repurchase transactions for $2.3 billion.
- The pending acquisition of ChampionX is anticipated to close in the first quarter of 2025, aiming to strengthen production and recovery capabilities.
- SLB is actively investing in New Energy initiatives, including Carbon Capture and Storage (CCS), low-carbon hydrogen, geothermal, and critical minerals extraction.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed January 22, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $36.29B$33.13B | +9.5% |
| R&D Expenses | $749.00M$711.00M | +5.3% |
| Interest Expense | $512.00M$503.00M | +1.8% |
| Net Income | $4.46B$4.20B | +6.1% |
| EPS (Basic) | $3.14$2.95 | +6.4% |
| EPS (Diluted) | $3.11$2.91 | +6.9% |
| Shares Outstanding (Basic) | 1.42B1.43B | −0.3% |
| Shares Outstanding (Diluted) | 1.44B1.44B | −0.5% |
05—Questions
Frequently Asked Questions
What was SLB's revenue and profitability performance in 2024?
In 2024, SLB reported a 10% increase in total revenue to $36.3 billion and a 12% growth in pretax segment operating income. International revenue grew by 12%, primarily driven by the Middle East & Asia and Europe & Africa regions.
How is SLB addressing the energy transition and sustainability?
SLB is driving energy innovation for a balanced planet through its strategy focused on Core, Digital, and New Energy. This includes developing technologies for decarbonizing industries, scaling new energy systems, and a commitment to net-zero GHG emissions by 2050. Their New Energy portfolio focuses on Industrial Decarbonization (CCS, hydrogen), Renewables and Energy Efficiency (geothermal, geoenergy), and Critical Minerals.
What are the key financial highlights regarding cash flow and capital allocation?
SLB generated $6.6 billion in cash flow from operations and $4.0 billion in free cash flow in 2024. The company returned $3.3 billion to shareholders in 2024 and announced plans to increase this to at least $4 billion in 2025 through a dividend increase and a $2.3 billion accelerated share repurchase program.
What is the status and expected impact of the ChampionX acquisition?
SLB announced a definitive agreement to acquire ChampionX in an all-stock transaction, expected to close in the first quarter of 2025, subject to regulatory approvals. This acquisition is expected to further strengthen SLB's production and recovery capabilities and enhance the resilience of its portfolio.
06—Continue