01—Abstract
Summary
Summary of the 10-Q filed July 24, 2024. Cited figures are marked; the original filing is the authoritative source.
SLB LIMITED/NV (SLB) reported strong financial results for the second quarter and first half of 2024, demonstrating robust revenue growth and improved profitability.
Total revenue for the second quarter reached $9.1 billiona, a 12% increase year-over-year, driven by broad-based international revenue growth and increased client investments in key areas like deepwater basins, exploration, and digital solutions. The company's strategic focus on international markets, particularly in the Middle East & Asia, coupled with its enhanced offshore exposure, contributed significantly to this performance. Net income attributable to SLB for the second quarter was $1.11 billion, resulting in diluted earnings per share of $0.77, both showing year-over-year improvement.
The company also highlighted progress on its strategic initiatives, including the pending acquisition of ChampionX Corporation, which is expected to close in late 2024 or early 2025. SLB's commitment to returning capital to shareholders was evident through a 10%b dividend increase and a stepped-up share repurchase program, signaling confidence in its financial health and future prospects.
02—Key points
Key Highlights
- Total revenue for Q2 2024 was $9.1 billion, a 12% increase compared to $8.1 billion in Q2 2023.
- Net income attributable to SLB increased to $1.11 billion in Q2 2024 from $1.03 billion in Q2 2023.
- Diluted earnings per share rose to $0.77 in Q2 2024 from $0.72 in Q2 2023.
- International revenue saw significant growth, driven by strong performance in the Middle East & Asia and increased offshore activity.
- The company announced a definitive agreement to acquire ChampionX Corporation, expected to close in Q4 2024 or Q1 2025.
- SLB increased its 2024 target for total returns of capital to shareholders to $3 billion, including additional share repurchases.
- Free cash flow for the first six months of 2024 was $554 million, compared to $721 million in the prior year period.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed July 24, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $9.14B$8.10B | +12.8% |
| R&D Expenses | $188.00M$163.00M | +15.3% |
| Interest Expense | $132.00M$127.00M | +3.9% |
| Net Income | $1.11B$1.03B | +7.6% |
| EPS (Basic) | $0.78$0.73 | +6.8% |
| EPS (Diluted) | $0.77$0.72 | +6.9% |
| Shares Outstanding (Basic) | 1.43B1.42B | +0.4% |
| Shares Outstanding (Diluted) | 1.44B1.44B | +0.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of SLB's revenue growth in Q2 2024?
Revenue growth in Q2 2024 was primarily driven by broad-based international revenue growth, particularly in the Middle East & Asia, and increased client investments in deepwater basins, exploration, and digital solutions. The Production Systems segment showed strong growth due to international markets.
What is the status of the ChampionX acquisition?
SLB announced a definitive agreement to acquire ChampionX Corporation in an all-stock transaction. ChampionX shareholders approved the deal, and it is anticipated to close in the fourth quarter of 2024 or the first quarter of 2025, subject to regulatory approvals and customary closing conditions.
How is SLB returning capital to shareholders?
SLB has demonstrated a commitment to returning capital through dividends and share repurchases. In January 2024, the company increased its quarterly cash dividend by 10% to $0.275 per share. Furthermore, SLB raised its 2024 target for total returns of capital to shareholders to $3 billion, an increase of $0.5 billion primarily for additional share repurchases, and set its target for 2025 at $4 billion.
What are the key financial trends observed in the first six months of 2024 compared to the same period in 2023?
For the first six months of 2024, SLB reported total revenue of $17.8 billion, a 13% increase year-over-year. Net income attributable to SLB was $2.18 billion, up from $1.97 billion in the prior year. This growth was partly attributable to the acquisition of the Aker subsea business and strong international revenue growth, particularly in the Middle East & Asia. North America revenue saw a decrease primarily due to lower drilling activity in US land.
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