10-QPeriod: Q3 FY2023

SLB LIMITED/NV Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 25, 2023For Securities:SLB

Summary

SLB LIMITED/NV (SLB) reported strong financial results for the third quarter and first nine months of 2023, demonstrating robust revenue growth and improved profitability. Total revenue for the third quarter reached $8.31 billion, an 11% increase year-over-year, driven by broad-based international market strength, particularly in the Middle East & Asia and Europe & Africa. Net income attributable to SLB for the quarter was $1.123 billion, a significant increase from $907 million in the prior year period, leading to diluted earnings per share of $0.78. The company continues to benefit from a multi-year growth cycle in the oil and gas industry, with a strategic shift towards international and offshore markets where SLB holds a leading position. Management highlighted sustained double-digit year-on-year revenue growth in international markets for the ninth consecutive quarter. The company also reported positive developments in its business segments, with Well Construction and Production Systems showing strong performance. SLB's financial position remains solid, supported by strong cash flow from operations and prudent capital management, including share repurchases and dividend payments.

Financial Highlights

46 data points
Beta

Revenue

$8.31B

Net Income

$1.12B

13.5% Net Margin

EPS (Diluted)

$0.78

Total Assets

$45.81B

Cash & Equivalents

$2.49B

Free Cash Flow

$1.21B

Financial Statements
Beta
Revenue$8.31B
R&D Expenses$186.00M
Operating Income$1.68B
Interest Expense$129.00M
Net Income$1.12B
EPS (Basic)$0.79
EPS (Diluted)$0.78
Shares Outstanding (Basic)1.42B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Total revenue for Q3 2023 was $8.31 billion, up 11% year-over-year, driven by 12% growth in international markets versus 6% in North America.
  • 2Net income attributable to SLB for Q3 2023 was $1.123 billion, an increase from $907 million in Q3 2022.
  • 3Diluted earnings per share (EPS) for Q3 2023 was $0.78, up from $0.63 in Q3 2022.
  • 4For the nine months ended September 30, 2023, total revenue increased by 19% to $24.15 billion, with net income attributable to SLB rising to $3.091 billion from $2.377 billion in the prior year.
  • 5The company generated $3.615 billion in cash flow from operations for the nine months ended September 30, 2023, a substantial increase from $2.106 billion in the same period of 2022.
  • 6SLB repurchased $594 million of its common stock during the first nine months of 2023 under its $10 billion share repurchase program.
  • 7Management expressed optimism about continued profitable growth, citing strong market fundamentals and a shift in industry spending towards international and offshore markets.

Frequently Asked Questions

In the third quarter of 2023, SLB reported total revenue of $8.31 billion, an 11% increase compared to the same quarter in 2022. Net income attributable to SLB was $1.123 billion, resulting in diluted earnings per share of $0.78, up from $0.63 in the prior year quarter. This growth was primarily driven by strong performance in international markets.

International markets continued to be a key growth driver, with revenue increasing by 12% year-over-year. The Middle East & Asia segment saw an 8% sequential increase in revenue, and Europe & Africa also demonstrated strong growth. North America revenue increased by 6% year-over-year.

SLB's management is optimistic about the future, citing compelling market fundamentals and a multi-year growth cycle in the oil and gas industry that is shifting towards international and offshore markets. They expect these dynamics to continue driving profitable growth in the years ahead.

SLB demonstrated strong operational cash flow generation, with $3.615 billion for the first nine months of 2023, up significantly from $2.106 billion in the same period of 2022. The company also continued its capital return strategy, repurchasing $594 million in stock during the first nine months of 2023 and paying dividends.