What is SLB's capital return plan for 2025?

The Board approved a 3.6% increase in the quarterly dividend to $0.285 per share. SLB also entered $2.3 billion of accelerated share repurchases, with about 80% of shares delivered in January 2025 and the remainder expected by the end of May 2025. Management expects total shareholder returns of at least $4 billion in 2025, up from $3.3 billion in 2024.

What is the expected 2025 capital investment, and how does the pending ChampionX acquisition affect it?

SLB expects full-year 2025 capital investment (capex, exploration data costs, and APS investments) of about $2.3 billion, compared with $2.6 billion in 2024. This figure excludes any impact from the anticipated closing of the ChampionX acquisition, so the combined company's spending could be higher once that deal closes.

What factors drove revenue growth, and where were the weak spots?

Growth was strongest in the Middle East & Asia (up 18% for the year) and Europe & Africa (up 13%), helped by the Aker subsea business acquired in late 2023, which contributed $1.93 billion in 2024. Excluding that acquisition, full-year revenue grew 5%. Latin America was weaker, with Q4 revenue down 5% year on year due to reduced drilling in Mexico. Well Construction revenue declined 5% year on year in Q4.

SLB 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 17, 2025. Cited figures are marked; the original filing is the authoritative source.

SLB reported fourth-quarter and full-year 2024 results on January 17, 2025, showing continued top-line and profitability growth despite subdued upstream spending.

Q4 revenue was $9.28 billion^a (up 1% sequentially, 3% year on year), GAAP diluted EPS was $0.77 (flat year on year), and EPS excluding charges and credits was $0.92 (up 7% year on year). Adjusted EBITDA reached $2.38 billion, a 25.7% margin. For the full year, revenue rose 10% to $36.29 billion, adjusted EBITDA grew 12% to $9.07 billion, and EPS excluding charges and credits rose 14% to $3.41.

Growth was led by the Middle East & Asia (up 18%) and Europe & Africa (up 13%), with the acquired Aker subsea business contributing $1.93 billion^b of 2024 revenue. Excluding that acquisition, full-year revenue grew 5%. Capital discipline and shareholder returns were the other focus.

Free cash flow for 2024 was $3.99 billion^c, and SLB returned $3.27 billion to shareholders while reducing net debt by $571 million. The Board raised the quarterly dividend 3.6% to $0.285 per share, and SLB initiated $2.3 billion in accelerated share repurchases, with about 80% of the shares delivered on January 13, 2025. Management targets total shareholder returns of at least $4 billion in 2025, and expects 2025 capital investment of roughly $2.3 billion, excluding the pending ChampionX acquisition.

The main risk factors cited are subdued upstream investment in the short term due to global oversupply, weakness in Latin America (notably Mexico drilling), and lower subsea production system sales. Digital & Integration margins expanded significantly, to 38.3%^d in Q4, which management presents as evidence of the strategic shift toward digital. Investors will watch the pace of upstream spending recovery, the completion and integration of ChampionX, and whether margin expansion continues as the company executes on its 2025 return commitments.

02—Key points

Key Highlights

Q4 2024 revenue of $9.28B (+3% YoY); GAAP EPS flat YoY at $0.77; EPS excluding charges and credits of $0.92 (+7% YoY)
Full-year 2024 revenue of $36.29B (+10% YoY), adjusted EBITDA of $9.07B (+12% YoY), and EPS excluding charges and credits of $3.41 (+14% YoY)
Free cash flow of $3.99B for 2024; net debt reduced by $571M to $7.4B
Quarterly dividend raised 3.6% to $0.285 per share, effective with the April 2025 payment
$2.3B accelerated share repurchase program initiated Dec. 20, 2024; about 80% of shares delivered January 13, 2025
Total shareholder returns guided to at least $4B in 2025, up from $3.27B in 2024
Digital & Integration Q4 pretax margin expanded to 38.3% (+430 bps YoY), while Well Construction margin fell to 20.8%

03—Questions

Frequently Asked Questions

How did SLB perform financially in the fourth quarter and full year of 2024?
Q4 2024 revenue was $9.28 billion, up 3% year on year, and EPS excluding charges and credits was $0.92, up 7%. For the full year, revenue rose 10% to $36.29 billion, adjusted EBITDA rose 12% to $9.07 billion, and EPS excluding charges and credits rose 14% to $3.41. GAAP full-year EPS was $3.11, up 7%.
What is SLB's capital return plan for 2025?
The Board approved a 3.6% increase in the quarterly dividend to $0.285 per share. SLB also entered $2.3 billion of accelerated share repurchases, with about 80% of shares delivered in January 2025 and the remainder expected by the end of May 2025. Management expects total shareholder returns of at least $4 billion in 2025, up from $3.3 billion in 2024.
What is the expected 2025 capital investment, and how does the pending ChampionX acquisition affect it?
SLB expects full-year 2025 capital investment (capex, exploration data costs, and APS investments) of about $2.3 billion, compared with $2.6 billion in 2024. This figure excludes any impact from the anticipated closing of the ChampionX acquisition, so the combined company's spending could be higher once that deal closes.
What factors drove revenue growth, and where were the weak spots?
Growth was strongest in the Middle East & Asia (up 18% for the year) and Europe & Africa (up 13%), helped by the Aker subsea business acquired in late 2023, which contributed $1.93 billion in 2024. Excluding that acquisition, full-year revenue grew 5%. Latin America was weaker, with Q4 revenue down 5% year on year due to reduced drilling in Mexico. Well Construction revenue declined 5% year on year in Q4.

04—Continue

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