8-KRegulation FDExhibits & Filings

SLB LIMITED/NV 8-K Report, Regulation FD Disclosure (Jan 31, 2024)

Filed January 31, 2024For Securities:SLB

Summary

SLB has issued a statement addressing Saudi Aramco's decision to maintain its Maximum Sustainable Capacity (MSC) at 12 million barrels per day, foregoing the increase to 13 MMBD. CEO Olivier Le Peuch clarified that while two offshore oil increment projects will be suspended, all ongoing oil and gas projects remain intact. This decision is not expected to materially impact SLB's growth outlook for the Kingdom in 2024, as their revenue mix is weighted towards onshore and the expanding gas market. SLB remains confident in a multi-year growth cycle in the Middle East, supported by their market position and the projected increase in global energy demand through the end of the decade. The company reiterates its positive outlook on the strength and longevity of the current cycle, expecting continued growth through 2024 and beyond.

Key Highlights

  • 1Saudi Aramco will maintain its Maximum Sustainable Capacity at 12 MMBD, not increase to 13 MMBD.
  • 2Two offshore oil increment projects in Saudi Arabia will be suspended, but all ongoing projects remain intact.
  • 3SLB's 2024 growth forecast for Saudi Arabia remains unchanged.
  • 4The company's revenue mix in Saudi Arabia, weighted towards onshore and gas, supports their outlook.
  • 5SLB sees continued multi-year growth in the Middle East due to its market position and regional dynamics.
  • 6Global energy demand is increasing, positioning international production to meet supply needs through 2030.
  • 7SLB expresses confidence in the strength and longevity of the energy cycle through 2024 and beyond.

Frequently Asked Questions

According to SLB's CEO, while two offshore oil increment projects not yet started will be suspended, all ongoing oil and gas projects in the Kingdom remain intact. This suggests that current operational projects are not directly affected.

No, SLB's forecast for significant growth in the Kingdom for 2024 remains intact. This is attributed to their revenue mix being weighted towards onshore and the expanding gas market, as well as their strong market position in other Middle Eastern countries.

SLB remains confident in the strength and longevity of the energy cycle through 2024 and beyond. They believe global energy demand will continue to increase, with international production playing a key role in meeting supply requirements until the end of the decade.

Yes, the filing contains forward-looking statements regarding SLB's business outlook, growth prospects, oil and gas demand/production, and capital allocation. Investors should be aware that these statements are subject to various risks and uncertainties, including global economic and geopolitical conditions, customer spending, regulatory changes, and other factors detailed in SLB's SEC filings. Actual results may differ materially from these projections.