- Revenue of $8.71 billion increased 13% year on year
- GAAP EPS of $0.74 increased 14% year on year
- EPS, excluding charges and credits, of $0.75 increased 19% year
on year
- Net income attributable to SLB of $1.07 billion increased 14%
year on year
- Adjusted EBITDA of $2.06 billion increased 15% year on
year
- Cash flow from operations was $327 million
- Board approved quarterly cash dividend of $0.275 per share
SLB (NYSE: SLB) today announced results for the first-quarter
2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240417469361/en/
The exterior of the SLB headquarters in
Houston, Texas (Photo: Business Wire)
First-Quarter Results
(Stated in millions, except per share amounts)
Three
Months Ended Change Mar. 31,2024 Dec. 31,2023
Mar. 31,2023
Sequential
Year-on-year Revenue
$8,707
$8,990
$7,736
-3%
13%
Income before taxes - GAAP basis
$1,357
$1,433
$1,161
-5%
17%
Income before taxes margin - GAAP basis
15.6%
15.9%
15.0%
-35 bps
58 bps
Net income attributable to SLB - GAAP basis
$1,068
$1,113
$934
-4%
14%
Diluted EPS - GAAP basis
$0.74
$0.77
$0.65
-4%
14%
Adjusted EBITDA*
$2,057
$2,277
$1,788
-10%
15%
Adjusted EBITDA margin*
23.6%
25.3%
23.1%
-171 bps
51 bps
Pretax segment operating income*
$1,649
$1,868
$1,391
-12%
19%
Pretax segment operating margin*
18.9%
20.8%
18.0%
-184 bps
95 bps
Net income attributable to SLB, excluding charges & credits*
$1,082
$1,243
$906
-13%
19%
Diluted EPS, excluding charges & credits*
$0.75
$0.86
$0.63
-13%
19%
Revenue by Geography
International
$7,056
$7,292
$5,985
-3%
18%
North America
1,598
1,641
1,698
-3%
-6%
Other
53
57
53
n/m
n/m
$8,707
$8,990
$7,736
-3%
13%
*These are non-GAAP financial measures. See sections titled
"Divisions" and "Supplementary Information" for details. n/m = not
meaningful (Stated in millions)
Three Months Ended
Change Mar. 31,2024 Dec. 31,2023 Mar. 31,2023
Sequential Year-on-year
Revenue by Division Digital
& Integration
$953
$1,049
$894
-9%
7%
Reservoir Performance
1,725
1,735
1,503
-1%
15%
Well Construction
3,368
3,426
3,261
-2%
3%
Production Systems
2,818
2,944
2,207
-4%
28%
Other
(157)
(164)
(129)
n/m
n/m
$8,707
$8,990
$7,736
-3%
13%
Pretax Operating Income by Division
Digital & Integration
$254
$356
$265
-29%
-4%
Reservoir Performance
339
371
242
-8%
40%
Well Construction
690
770
672
-10%
3%
Production Systems
400
442
205
-10%
95%
Other
(34)
(71)
7
n/m
n/m
$1,649
$1,868
$1,391
-12%
19%
Pretax Operating Margin by Division
Digital & Integration
26.6%
34.0%
29.6%
-735 bps
-300 bps
Reservoir Performance
19.7%
21.4%
16.1%
-170 bps
356 bps
Well Construction
20.5%
22.5%
20.6%
-198 bps
-11 bps
Production Systems
14.2%
15.0%
9.3%
-84 bps
490 bps
Other
n/m
n/m
n/m
n/m
n/m
18.9%
20.8%
18.0%
-184 bps
95 bps
n/m = not meaningful
Exciting Start to the Year
SLB CEO Olivier Le Peuch commented, “We have had an exciting
start to the year with our announced agreement to acquire ChampionX
Corporation (ChampionX), which will bolster our production and
recovery portfolio. We also continued our growth momentum, with a
strong first-quarter performance resulting from robust year-on-year
revenue and EBITDA growth consistent with our first quarter and
full-year guidance.
“Compared to the same quarter last year, revenue increased 13%,
EPS (excluding charges and credits) rose 19% to $0.75, adjusted
EBITDA grew 15%, and adjusted EBITDA margin expanded year on year
for the 13th consecutive quarter. Approximately half of the
year-on-year revenue increase came from the Aker subsea business,
which was added as part of our OneSubsea joint venture in the
fourth quarter of 2023.
“International revenue grew 18% year on year, compensating for a
softer North American market where revenue declined 6%. Excluding
the contribution of the Aker subsea business, international revenue
grew 10%.
“During the quarter, we continued to benefit from our favorable
exposure to the international markets, with remarkable year-on-year
growth of 29% in the Middle East & Asia, in addition to growth
of 18% in Europe & Africa.
“Sequentially, revenue declined 3% both in North America and in
the international markets due to seasonality. However, this impact
was less pronounced than in prior years as robust activity gains
partially offset seasonal effects.
“I want to extend my appreciation to the SLB team for achieving
these outstanding results. I look forward to building on this
momentum in the coming quarters."
First Quarter Powered by the Core
“Our Core business—comprising Reservoir Performance, Well
Construction, and Production Systems—achieved revenue growth of 13%
year on year and expanded pretax segment operating margin by more
than 200 basis points (bps). This growth was supported by
investments in long-cycle developments and production capacity
expansions, particularly in the Middle East & Asia and Latin
America.
“Production Systems revenue grew 28% year on year driven by the
acquired Aker subsea business. Excluding the contribution of the
Aker subsea business, Production Systems revenue grew 6% driven by
a double-digit increase in international revenue resulting from
higher sales of completions, surface production systems, and
artificial lift. Reservoir Performance revenue increased 15% year
on year due to increased stimulation, evaluation, and intervention
services across all areas on land and offshore and from both
exploration and production activity. Well Construction grew 3% year
on year driven by a 9% increase in international revenue, led by
Middle East & Asia but partially offset by reduced activity in
North America.”
Revenue Growth, Margin Expansion, and Returns to
Shareholders
“We remain confident in our global revenue growth outlook for
2024, with softness in North America being offset by upside in the
international markets. The dynamics of this cycle remain intact,
with international and offshore growth taking place across all
geographies, benefiting all of our Divisions as we continue to be
awarded new contracts, enhancing the quality and longevity of our
revenue backlog.
“Our journey of margin expansion continues to be driven by tight
service and equipment capacity internationally, increased
technology adoption, and further operational efficiency. As a
result, we affirm our previous guidance of mid-teens EBITDA growth
for the full year.
“Turning specifically to the second quarter, we expect a
seasonal rebound in activity in the Northern Hemisphere coupled
with robust activity internationally, led by the Middle East, Asia,
and Africa. This will drive broad sequential margin expansion
across all Divisions and geographies.
“Based on our strong start to the year, confidence in our
ability to generate robust cash flows, and the anticipated
contribution of the announced ChampionX acquisition, we are
targeting to return $7 billion to shareholders over the next two
years. This represents a target for returns to shareholders of $3
billion in 2024 and $4 billion in 2025.”
The Momentum Continues
“The oil and gas industry continues to benefit from strong
market fundamentals driven by a growing demand outlook. This is
resulting in a significant baseload of activity, particularly in
the international and offshore markets, closely aligned with the
strengths of our business. As the cycle persists, we expect
operators to increase their investments in production and reservoir
recovery, with the goal of maximizing the efficiency and longevity
of their producing assets. This will result in operating
expenditures becoming an increasing part of global upstream
spending over time.
“We are already benefiting from these investments, and our
recently announced agreement to acquire ChampionX will position us
to further capture this growing opportunity through the addition of
a leading production chemicals portfolio and a complementary
artificial lift offering. We look forward to harnessing the strong
capabilities of ChampionX to deliver superior performance for our
customers.
“There also continues to be a growing emphasis across the
industry on emissions reduction. This is presenting an exciting new
market for lower-carbon technologies and carbon capture and
sequestration (CCS), where we are positioned very well, as
exemplified by the expansion of our CCS portfolio with our recent
announcement of our agreement to acquire a majority ownership stake
in Aker Carbon Capture.
“All in all, the dynamics of the cycle continue to reinforce our
strategy and outlook for the future. I look forward to continuing
to deliver exceptional service for our customers and results for
our stockholders throughout the year.”
Other Events
During the quarter, SLB repurchased 5.4 million shares of its
common stock at an average price of $50.13 per share for a total
purchase price of $270 million.
On March 27, 2024, SLB announced an agreement to combine its
carbon capture business with Aker Carbon Capture (OSE: ACC) to
support accelerated industrial decarbonization at scale. Bringing
together complementary technology portfolios, leading process
design expertise, and an established project delivery platform, the
combination will leverage Aker Carbon Capture’s commercial carbon
capture product offering and SLB’s new technology developments and
industrialization capability. It will create a vehicle for
accelerating the introduction of disruptive early-stage technology
into the global market on a commercial, proven platform. Following
the transaction, SLB will own 80% of the combined business and ACC
will own 20%. The transaction is subject to regulatory approvals
and other customary closing conditions and is anticipated to close
in the second quarter of 2024.
On April 2, 2024, SLB and ChampionX Corporation (NASDAQ: CHX)
announced a definitive agreement for SLB to purchase ChampionX in
an all-stock transaction. Under the terms of the agreement,
ChampionX shareholders will receive 0.735 shares of SLB common
stock in exchange for each ChampionX share. At the closing of the
transaction, ChampionX shareholders will own approximately 9% of
SLB’s outstanding shares of common stock. SLB expects to realize
annual pretax synergies of approximately $400 million within the
first three years post-closing through incremental revenue and cost
savings. The transaction is subject to ChampionX shareholders’
approval, regulatory approvals, and other customary closing
conditions. It is anticipated that the closing of the transaction
will occur before the end of 2024.
On April 19, 2024, SLB’s Board of Directors approved a quarterly
cash dividend of $0.275 per share of outstanding common stock,
payable on July 11, 2024, to stockholders of record on June 5,
2024.
First-Quarter Revenue by Geographical Area
Three Months Ended Change Mar. 31,2024 Dec.
31,2023 Mar. 31,2023
Sequential Year-on-year North America
$1,598
$1,641
$1,698
-3%
-6%
Latin America
1,654
1,722
1,617
-4%
2%
Europe & Africa*
2,322
2,429
1,974
-4%
18%
Middle East & Asia
3,080
3,141
2,394
-2%
29%
Eliminations & other
53
57
53
n/m
n/m
$8,707
$8,990
$7,736
-3%
13%
International
$7,056
$7,292
$5,985
-3%
18%
North America
$1,598
$1,641
$1,698
-3%
-6%
*Includes Russia and the Caspian region n/m = not meaningful
International
Revenue in Latin America of $1.65 billion increased 2%
year on year due to higher sales of production systems in Brazil
and robust drilling activity in Argentina, partially offset by
reduced drilling revenue in Mexico. Sequentially, revenue decreased
4% due to lower drilling revenue in Mexico and reduced Asset
Performance Solutions (APS) revenue in Ecuador.
Europe & Africa revenue of $2.32 billion increased
18% year on year with growth driven by the acquired Aker subsea
business, primarily in Scandinavia. The growth was further boosted
by intensified offshore exploration, drilling, and production
activity in West Africa. Sequentially, revenue decreased 4% due to
seasonal activity reductions, mainly in Europe and Scandinavia.
Revenue in the Middle East & Asia of $3.08 billion
increased 29% year on year due to higher drilling, intervention,
and evaluation activity in Saudi Arabia, Egypt, United Arab
Emirates, Oman, Kuwait, and across Southeast Asia and Australia.
Sequentially, revenue decreased 2% due to seasonally lower activity
and the absence of year-end product sales.
North America
North America revenue of $1.60 billion decreased 6% year
on year due to reduced drilling activity in US land and lower APS
revenue in Canada, while offshore revenue was flat. Sequentially,
North America revenue decreased 3% on lower sales of production
systems in the US Gulf of Mexico while revenue in US land was
essentially flat.
First-Quarter Results by Division
Digital & Integration
(Stated in millions)
Three Months Ended Change
Mar. 31,2024 Dec. 31,2023 Mar. 31,2023
Sequential
Year-on-year Revenue
International
$717
$790
$642
-9%
12%
North America
236
257
251
-8%
-6%
Other
-
2
1
n/m
n/m
$953
$1,049
$894
-9%
7%
Pretax operating income
$254
$356
$265
-29%
-4%
Pretax operating margin
26.6%
34.0%
29.6%
-735 bps
-300 bps
n/m = not meaningful
Digital & Integration revenue of $953 million increased 7%
year on year as a result of growth in digital sales in the
international markets while APS revenue was flat year on year.
Sequentially, revenue experienced a seasonal decline of 9%
following strong year-end digital sales.
Digital & Integration pretax operating margin of 27%
contracted 300 bps year on year and 735 bps sequentially. The
pretax operating margin decreased year on year due to the effects
of higher APS amortization expense and lower gas prices.
Sequentially, pretax operating margin contracted primarily due to
seasonally lower digital sales.
Reservoir Performance
(Stated in millions)
Three Months Ended Change
Mar. 31,2024 Dec. 31,2023 Mar. 31,2023
Sequential
Year-on-year Revenue International
$1,592
$1,611
$1,380
-1%
15%
North America
130
123
120
6%
8%
Other
3
1
3
n/m
n/m
$1,725
$1,735
$1,503
-1%
15%
Pretax operating income
$339
$371
$242
-8%
40%
Pretax operating margin
19.7%
21.4%
16.1%
-170 bps
356 bps
n/m = not meaningful
Reservoir Performance revenue of $1.72 billion grew 15% year on
year due to increased stimulation, evaluation, and intervention
services across all areas on land and offshore and from both
exploration and production activity. More than 70% of the revenue
growth was recorded in the Middle East & Asia. Sequentially,
revenue decreased 1% as the seasonal activity reductions in Russia
and Asia were partially offset by activity increases in the Middle
East, North America, and Europe & Africa.
Reservoir Performance pretax operating margin of 20% expanded
356 bps year on year with profitability improving across the
international markets driven by higher activity and improved
pricing from increased technology intensity in evaluation and
stimulation. Sequentially, pretax operating margin contracted 170
bps as a result of the seasonal revenue decline in intervention
activity internationally.
Well Construction
(Stated in millions)
Three Months Ended Change
Mar. 31,2024 Dec. 31,2023 Mar. 31,2023
Sequential
Year-on-year Revenue International
$2,707
$2,748
$2,493
-1%
9%
North America
604
614
711
-2%
-15%
Other
57
64
57
n/m
n/m
$3,368
$3,426
$3,261
-2%
3%
Pretax operating income
$690
$770
$672
-10%
3%
Pretax operating margin
20.5%
22.5%
20.6%
-198 bps
-11 bps
n/m = not meaningful
Well Construction revenue of $3.37 billion increased 3% year on
year driven by strong international activity, primarily in the
Middle East & Asia, partially offset by declining revenue in
North America and Latin America. Sequentially, revenue was 2% lower
due to seasonal activity reductions across all areas.
Well Construction pretax operating margin of 20% was essentially
flat year on year, expanding internationally due to robust activity
increases in measurements and fluids, but partially offset by
margin contraction in North America. Sequentially, pretax operating
margin contracted 198 bps due to the seasonal decline in
activity.
Production Systems
(Stated in millions)
Three Months Ended Change
Mar. 31,2024 Dec. 31,2023 Mar. 31,2023
Sequential
Year-on-year Revenue International
$2,164
$2,276
$1,574
-5%
37%
North America
647
666
626
-3%
3%
Other
7
2
7
n/m
n/m
$2,818
$2,944
$2,207
-4%
28%
Pretax operating income
$400
$442
$205
-10%
95%
Pretax operating margin
14.2%
15.0%
9.3%
-84 bps
490 bps
n/m = not meaningful
Production Systems revenue of $2.82 billion increased 28% year
on year, mainly due to the acquisition of the Aker subsea business.
Excluding the effects of the Aker subsea acquisition, revenue grew
6% year on year driven by double-digit international sales. Organic
year-on-year growth was led by strong international sales of
completions, surface production systems, and artificial lift,
partially offset by reduced sales of midstream production systems.
The sequential revenue decline was driven by seasonally lower sales
of subsea production systems, artificial lift, and midstream
production systems.
Production Systems pretax operating margin expanded 490 bps year
on year due to improved profitability in subsea production systems,
completions, surface production systems, and artificial lift driven
by activity mix, execution efficiency, and conversion of
improved-price backlog. Sequentially, pretax operating margin
contracted due to seasonally lower sales.
Quarterly Highlights
CORE
Contract Awards
SLB continues to win new contract awards that align with SLB’s
core strengths, particularly in the international and offshore
basins. Notable highlights include the following:
- In Brazil, SLB secured an integrated drilling contract in the
Búzios, Atapu, and Sepia fields. The three-year scope, from 2025 to
2028, includes drilling services, drill bits and fluids,
mudlogging, managed-pressure-while-drilling wireline services,
cementing, fishing and remediation tools, and wellbore
cleanup.
- Also in Brazil, Petrobras awarded SLB a technology framework
agreement to develop an autonomous light workover intervention
system that will eliminate the need for a deepwater rig. This
two-and-a-half-year contract will be locally developed and will
determine the feasibility of a cost-effective platform to execute
light interventions offshore.
- In Libya, Arkenu awarded SLB an Integrated Production Services
contract with a minimum term of eight years. With a scope of more
than 150 wells, operations will include reactivating shut-in wells,
drilling reentries/sidetracks, and upgrading existing surface
facilities. These initiatives expand SLB offerings in the country
for optimizing oil and gas production in a cost-effective and
sustainable manner.
- Also in Libya, Mabruk Oil Operations awarded SLB a second
three-year contract to deploy an “express” early production
facility (EPF). As a key part of the Production ExPRESS™ rapid
production response solutions portfolio, the express EPF will
mobilize existing, fit-for-purpose SLB technologies, enabling the
operator to fast-track the production of 25,000 barrels per day,
reducing cash flow exposure while dealing with unknown reservoir
dynamics. The integration of zero-flaring technology in Production
ExPRESS solutions aids in compliance with regulatory requirements
and reduces the environmental impact of production facilities.
- In Iraq, Eni Iraq BV awarded SLB two contracts for integrated
well construction services, which will start by the second quarter
of 2024. The scope of the first contract, a rollover of a current
contract, includes 18 wells with two rigs. The scope of the second
contract covers 16 wells with two additional rigs.
- In Oman, bp has awarded a substantial contract extension to SLB
for the provision of stimulation services. The five-year extension
reflects the strong partnership and mutual agreement to continue
collaborating on efficiency and sustainability roadmaps. These
initiatives aim to reduce upstream stimulation services sector
emissions, demonstrating our shared commitment to environmental
stewardship and sustainable practices.
- In the Philippines, Prime Energy Resources Development B.V.
awarded OneSubsea a contract for the supply of subsea production
systems for the Malampaya gas field expansion. The contract scope
is for Phase 4 of the Malampaya development inclusive of all
hardware for the addition of two new wells. OneSubsea will deliver
capital-efficient, standard configurable systems comprising subsea
trees, wellheads, and controls. The first delivery of equipment is
expected in December 2024, with field development goals targeted to
deliver first gas in 2026.
- In Malaysia, two national oil companies awarded contracts to
SLB for work for the two-year period 2024–2025. These contracts
cover well testing and tubing-conveyed perforating completion work
for exploration offshore Malaysia.
Technology and Performance
Notable technology introductions and deployment in the quarter
include the following:
- In Guyana, SLB technologies set a new standard for performance
in an open-water-work campaign for ExxonMobil Guyana. Advanced SLB
tools deployed in the 13-well campaign improved the rate of
penetration by 60%, reduced the time for gyro surveys by 85%, and
improved steering by 20%. The campaign saw the first use of a
26-inch polycrystalline diamond cutter bit in Guyana, the
application of the GyroLink™ definitive gyro-while-drilling
service, and the first global implementation of a nine-inch
DynaForce™ high-performance drilling motor integrated with the
DynaPower XE™ extreme-environment motor elastomer in the PowerDrive
vorteX™ powered rotary steerable system. The first use in Guyana of
an AccuStrike™ short-makeup drill bit expanded the performance
capabilities in complex trajectory wells.
- Also in Guyana, the SLB SureRock™ enhanced sidewall coring
solution was utilized as a key enabler to avoid drilling a bypass
well for whole core in the Stabroek Block. Using advanced digital
capabilities and real-time insights from nearby wells, ExxonMobil
Guyana Limited (EMGL) and SLB established an efficient strategy
that acquired 118 sidewall cores in only two runs, representing a
recovery rate of 96%. Through elimination of the bypass well, EMGL
saved 15 days of rig time, equating to 2,550 metric tons of CO2
emissions, while achieving all formation evaluation
objectives.
- In Norway, SLB innovative technology solutions and commitment
to excellence were integral in supporting Aker BP in drilling the
longest exploration well in Norway with more than 6,000 meters
drilled in the reservoir. This cooperation resulted in
technological milestones that enabled drilling horizontally for
long intervals in the reservoir and acquiring a large volume of
data critical to the field development while supporting a
significant oil discovery.
- In Thailand, a production enhancement campaign using the
ReSOLVE iX™ intelligent extreme wireline intervention service
successfully restored production in four offshore gas wells
experiencing scale issues. The tool’s downhole sensors enabled
real-time monitoring of scale milling performance at high
temperatures. Deployment of the tool on electric wireline lowered
overall operational cost and the carbon footprint.
- In Indonesia, SLB contributed to the success of Mubadala
Energy’s Layaran-1 exploration well with bundled services that
included well construction, reservoir performance analysis, and a
subsea landing string. The deployment of the full deepwater
services package in high-temperature operations proved the
robustness and value of these high-end technologies. This was
Mubadala Energy’s first deepwater well in a field that is estimated
to contribute an additional six trillion cubic feet to Indonesia’s
gas reserves.
Decarbonization
SLB is focused on developing and implementing technologies that
can reduce emissions and environmental impact with practical,
quantifiably proven solutions. Highlights include the
following:
- In the Midland Basin, SLB received an award from Pioneer
Natural Resources recognizing its work in reducing greenhouse gas
emissions through use of the EcoShield™ geopolymer cement-free
system and PowerDrive Orbit™ rotary steerable system. Through the
use of these SLB technologies, Pioneer was able to increase
drilling efficiency in addition to reducing carbon emissions.
- In Guyana, SLB completed the field trial of an environmentally
friendly weighting agent to replace barite in dynamic kill drilling
mud for ExxonMobil Guyana. The thermally processed recovered solids
(TPRS) material is derived from recycled synthetic-based drilling
mud waste. The two successful field trial wells realized the
benefits of reduced waste; reduced carbon footprint and trucking
traffic associated with transportation of TPRS to landfill sites;
and reduced carbon footprint associated with grinding, mining, and
transportation of barite to Guyana—approximately 54,540 kilograms
for the field trial wells alone.
- In the Netherlands, ONE-Dyas has awarded SLB a contract to
supply Cameron wellhead and production tree systems for the initial
five well development in the N05-A project. Platform N05-A will be
the first Dutch offshore gas treatment platform in the North Sea to
run entirely on wind energy, which will be supplied by a nearby
wind farm. The system includes surface electric actuators installed
on the tree valves. This utilization of an electric surface
actuator on a production tree offshore is an industry first.
Electric surface actuators enable smaller footprints, near-zero
emissions during production, and highly reliable unmanned
facilities. Delivery is expected by the fourth quarter of
2024.
- In Oman, MedcoEnergi has successfully started to deploy the
EcoShield low-carbon geopolymer cement-free system, paving the way
to decarbonize the company’s cementing operations. The first
deployment in Oman resulted in complete elimination of conventional
Class G cement and the use of sustainable locally sourced materials
during the cementing of surface casing. This job achieved an
estimated 87% reduction in CO2e emissions when compared to the
conventional surface casing cementing job and represents a major
milestone for MedcoEnergi and SLB in aligning with the industry’s
path to net zero. Jobs for the EcoShield low-carbon system were
designed and executed using standard oilfield cementing workflows
and pumping equipment and showed identical drilling parameters to
those of conventional cement systems.
DIGITAL
SLB is deploying digital technology at scale, partnering with
customers to migrate their technology and workflows into the cloud,
embrace new AI-enabled capabilities, and leverage insights to
elevate their performance. Notable highlights include the
following:
Contract Awards
- In India, Oil and Natural Gas Company (ONGC) awarded SLB a
seven-year digital transformation project to deploy an integrated
reporting platform for more than 180 drilling and workover rigs.
The project aims to standardize and automate reporting for
drilling, completion, and workover activities across all ONGC
assets and use the improved visualization and analytics to make
data-driven decisions at the enterprise level. The project will
serve as the foundation to drive strategic planning and optimize
asset performance using AI and machine learning workflows across
exploration and production operations in both onshore and offshore
environments.
- Also in India, Oil and Natural Gas Company, Neela Heera asset
(ONGC-NH) has awarded SLB a three-year project to deploy an
integrated digital analytics system at its second-largest producing
field in western offshore India. The advanced system integrates
huge volumes of production data into a consolidated dashboard for
visualization at the enterprise level and encompasses wells,
facilities, and 15 technical workflows developed at INNOVATION
FACTORI for production surveillance and optimization. Use of the
Pipesim™ steady-state multiphase flow simulator will enable
proactive decisions by rapidly identifying bottlenecks and
operational challenges. By minimizing unnecessary offshore and
regional trips, the initiative will mitigate HSE risks.
- In Pakistan, Oil & Gas Development Company Limited (OGDCL)
has partnered with SLB to launch Pakistan's first digital drilling
hub. The collaboration pioneers advanced engineering algorithms,
automation, AI, and machine learning technologies to optimize
drilling efficiency for a challenging drilling campaign in northern
Pakistan, using the DrillPlan™ coherent well planning and
engineering solutions and DrillOps™ intelligent well delivery and
insight solutions. The initiative represents a significant
advancement in digitalizing the drilling operations of Pakistan's
energy sector to enhance operational efficiency, reduce costs, and
promote sustainable oil and gas exploration in the country.
Digital Enablement
- In the Republic of the Congo, Eni deployed advanced AI-driven
drilling automation technology from SLB on the drilling campaign of
an LNG development. The automation helped deliver 1,071 meters in a
single day, with the gross rate of penetration doubled compared to
the field average. Teams from Eni and SLB worked in close
collaboration using integrated digital technologies from SLB,
starting with the DrillPlan coherent well planning and engineering
solutions. The well plans were executed by DrillOps Automate
working in harmony with DrillPilot™ rig floor equipment sequencing
software and downhole rotary steerable system technologies enabled
by the TruLink™ definitive dynamic survey-while-drilling service
and Orion fast telemetry.
- In Oman, Medco Oman LLC awarded a contract to SLB for an
automated drilling performance measurement and analysis service.
The service will leverage digital technologies to assess current
rig performance to identify and mitigate dynamic risks, such as the
potential for stuck-pipe incidents. This initiative aims to enhance
Medco's operational performance, reduce nonproductive time, and
minimize lost time. The project marks the beginning of a digital
transformation journey as SLB and Medco collaborate on Oman’s first
in-country cloud deployment. The project will apply digital
technologies powered by AI to Oman's drilling operations and will
create a digital platform for an integrated well construction
workflow.
- In the US, Extreme and INNOVATION FACTORI collaborated directly
with their service company customers, such as Total Directional
Services, LLC, to develop a next-generation drilling data delivery
tool that enables customers to access their data quickly and more
efficiently. The Extreme automated digital workflows enable
customers to maximize the value of their rotary steerable system
data. Integration with the Dataiku AI platform accelerates the
process of deriving insights from the datasets. Additional rapid
customization and scalable development are delivered through the
INNOVATION FACTORI network.
NEW ENERGY
SLB continues to participate in the global transition to
low-carbon energy systems through innovative technology and
strategic partnerships, including the following:
- SLB is participating as the technology deployment partner in
two CCS projects that have been selected for award negotiations by
the US Department of Energy Office of Clean Energy Demonstrations.
The first is in partnership with TDA Research to deploy a carbon
capture system at the Wyoming Integrated Test Center located
outside of Basin Electric’s Dry Fork Station, a coal-fired power
plant in Gillette, Wyoming. The second is in partnership with RTI
International, International Paper, and Amazon for a carbon capture
pilot project planned at International Paper’s Vicksburg
Containerboard Mill in Mississippi. In the first phase of both
projects, SLB will conduct a robust front-end-engineering-design.
Together, these projects would pilot two early-stage carbon capture
technologies with the aim to economically capture 278,000 metric
tons of CO2 annually.
- In Australia, SLB completed a fully integrated CO2 injection
test for Mitsui E&P Australia’s Cygnus CCS hub. SLB provided
the carbon storage evaluation and designed and supervised the
innovative CO2 injection system from concept to execution,
utilizing technical expertise and technologies such as the Olga™
dynamic multiphase flow simulator and Symmetry™ process simulation
software. The Cygnus project, in the Mid-West region of Western
Australia, aims to reduce emissions from Mitsui facilities and
support other industries in the decarbonization of their
operations.
- In the Philippines, Energy Development Corporation awarded SLB
contracts for a geothermal project covering a period of three
years. The contracts include acidizing, cementing, and mudlogging
work for geothermal wells.
- In the United States, Eversource, an energy provider in
Connecticut, Massachusetts, and New Hampshire, has partnered with
SLB’s Celsius Energy for the first utility‐owned networked
geothermal heating and cooling system in the US. The completed
geothermal network will connect 140 customers across nearly 40
buildings in Framingham, Massachusetts. To date, Celsius Energy,
chosen for its unique borehole design and drilling, has managed the
installation of 90 boreholes for Eversource’s pilot program. Using
its unique pyramid solution instead of the conventional large field
of vertical boreholes connected via surface piping, Celsius Energy
significantly reduced the surface footprint and reduced required
surface piping by 74%.
FINANCIAL TABLES
Condensed Consolidated Statement of Income
(Stated in millions, except per
share amounts)
Three Months Periods Ended March 31,
2024
2023
Revenue
$8,707
$7,736
Interest & other income (1)
84
92
Expenses Cost of revenue (1)
7,007
6,285
Research & engineering
182
174
General & administrative
121
91
Merger & integration (1)
11
-
Interest
113
117
Income before taxes (1)
$1,357
$1,161
Tax expense (1)
259
217
Net income (1)
$1,098
$944
Net income attributable to noncontrolling interests (1)
30
10
Net income attributable to SLB (1)
$1,068
$934
Diluted earnings per share of SLB (1)
$0.74
$0.65
Average shares outstanding
1,431
1,426
Average shares outstanding assuming dilution
1,447
1,446
Depreciation & amortization included in expenses (2)
$600
$563
(1)
See section entitled “Charges & Credits” for details.
(2)
Includes depreciation of fixed assets and amortization of
intangible assets, exploration data costs, and APS investments.
Condensed Consolidated Balance Sheet
(Stated in millions)
Mar. 31,
Dec. 31,
Assets
2024
2023
Current Assets Cash and short-term investments
$3,491
$3,989
Receivables
8,222
7,812
Inventories
4,549
4,387
Other current assets
1,438
1,530
17,700
17,718
Investment in affiliated companies
1,606
1,624
Fixed assets
7,253
7,240
Goodwill
14,086
14,084
Intangible assets
3,167
3,239
Other assets
4,044
4,052
$47,856
$47,957
Liabilities and Equity Current Liabilities Accounts payable
and accrued liabilities
$10,051
$10,904
Estimated liability for taxes on income
987
994
Short-term borrowings and current portion of long-term debt
1,430
1,123
Dividends payable
411
374
12,879
13,395
Long-term debt
10,740
10,842
Postretirement benefits
177
175
Other liabilities
2,137
2,186
25,933
26,598
Equity
21,923
21,359
$47,856
$47,957
Liquidity
(Stated in millions)
Components of Liquidity
Mar. 31,2024 Dec. 31,2023 Mar.
31,2023 Cash and short-term investments
$3,491
$3,989
$2,504
Short-term borrowings and current portion of long-term debt
(1,430)
(1,123)
(2,140)
Long-term debt
(10,740)
(10,842)
(10,698)
Net Debt (1)
$(8,679)
$(7,976)
$(10,334)
Details of changes in liquidity follow:
Three
Three
Months
Months
Periods Ended March 31,
2024
2023
Net income
$1,098
$944
Charges and credits, net of tax (2)
19
(28)
1,117
916
Depreciation and amortization (3)
600
563
Stock-based compensation expense
100
81
Change in working capital
(1,486)
(1,230)
Other
(4)
-
Cash flow from operations
327
330
Capital expenditures
(399)
(410)
APS investments
(121)
(133)
Exploration data capitalized
(29)
(52)
Free cash flow (4)
(222)
(265)
Dividends paid
(357)
(249)
Stock repurchase program
(270)
(230)
Proceeds from employee stock plans
115
121
Business acquisitions and investments, net of cash acquired
(27)
(244)
Purchases of Blue Chip Swap securities
(52)
(38)
Proceeds from sale of Blue Chip Swap securities
34
26
Proceeds from sale of Liberty shares
-
137
Taxes paid on net settled stock-based compensation awards
(78)
(88)
Other
58
(72)
Decrease in net debt before impact of changes in foreign
exchange rates
(799)
(902)
Impact of changes in foreign exchange rates on net debt
96
(100)
Decrease in Net Debt
(703)
(1,002)
Net Debt, beginning of period
(7,976)
(9,332)
Net Debt, end of period
$(8,679)
$(10,334)
(1)
“Net Debt” represents gross debt less cash
and short-term investments. Management believes that Net Debt
provides useful information to investors and management regarding
the level of SLB’s indebtedness by reflecting cash and investments
that could be used to repay debt. Net Debt is a non-GAAP financial
measure that should be considered in addition to, not as a
substitute for or superior to, total debt.
(2)
See section entitled “Charges &
Credits” for details.
(3)
Includes depreciation of fixed assets and
amortization of intangible assets, exploration data costs, and APS
investments.
(4)
“Free cash flow” represents cash flow from
operations less capital expenditures, APS investments, and
exploration data costs capitalized. Management believes that free
cash flow is an important liquidity measure for the company and
that it is useful to investors and management as a measure of SLB’s
ability to generate cash. Once business needs and obligations are
met, this cash can be used to reinvest in the company for future
growth or to return to shareholders through dividend payments or
share repurchases. Free cash flow does not represent the residual
cash flow available for discretionary expenditures. Free cash flow
is a non-GAAP financial measure that should be considered in
addition to, not as a substitute for or superior to, cash flow from
operations.
Charges & Credits
In addition to financial results determined in accordance with
US generally accepted accounting principles (GAAP), this
first-quarter 2024 earnings release also includes non-GAAP
financial measures (as defined under the SEC’s Regulation G). In
addition to the non-GAAP financial measures discussed under
“Liquidity”, SLB net income, excluding charges & credits, as
well as measures derived from it (including diluted EPS, excluding
charges & credits; effective tax rate, excluding charges &
credits; adjusted EBITDA and adjusted EBITDA margin) are non-GAAP
financial measures. Management believes that the exclusion of
charges & credits from these financial measures provide useful
perspective on SLB’s underlying business results and operating
trends, and a means to evaluate SLB’s operations period over
period. These measures are also used by management as performance
measures in determining certain incentive compensation. The
foregoing non-GAAP financial measures should be considered in
addition to, not as a substitute for or superior to, other measures
of financial performance prepared in accordance with GAAP. The
following is a reconciliation of certain of these non-GAAP measures
to the comparable GAAP measures. For a reconciliation of adjusted
EBITDA to the comparable GAAP measure, please refer to the section
titled “Supplementary Information” (Question 9).
(Stated in millions, except per
share amounts)
First Quarter 2024 Pretax Tax Noncont.Interests Net
DilutedEPS SLB net income (GAAP basis)
$1,357
$259
$30
$1,068
$0.74
Merger & integration (1)
25
6
5
14
0.01
SLB net income, excluding charges & credits
$1,382
$265
$35
$1,082
$0.75
First Quarter 2023 Pretax Tax
Noncont.Interests Net DilutedEPS SLB net income (GAAP basis)
$1,161
$217
$10
$934
$0.65
Gain on sale of Liberty shares (2)
(36)
(8)
-
(28)
(0.02)
SLB net income, excluding charges & credits
$1,125
$209
$10
$906
$0.63
Fourth Quarter 2023 Pretax Tax
Noncont.Interests Net DilutedEPS SLB net income (GAAP basis)
$1,433
$284
$36
$1,113
$0.77
Merger & integration (3)
56
8
8
40
0.03
Argentina devaluation (4)
90
-
-
90
0.06
SLB net income, excluding charges & credits
$1,579
$292
$44
$1,243
$0.86
(1)
$14 million of these charges were
classified in Cost of revenue in the Condensed Consolidation
Statement of Income with the remaining $11 million classified in
Merger & integration.
(2)
Classified in Interest & other income
in the Condensed Consolidated Statement of Income.
(3)
$45 million of these charges were
classified in Merger & integration in the Condensed
Consolidated Statement of Income with the remaining $11 million
classified in Cost of revenue.
(4)
Classified in Cost of revenue in the
Condensed Consolidated Statement of Income.
Divisions
(Stated in millions)
Three Months Ended Mar. 31, 2024
Dec. 31, 2023 Mar. 31, 2023
Revenue
IncomeBeforeTaxes Revenue IncomeBeforeTaxes Revenue
IncomeBeforeTaxes Digital & Integration
$953
$254
$1,049
$356
$894
$265
Reservoir Performance
1,725
339
1,735
371
1,503
242
Well Construction
3,368
690
3,426
770
3,261
672
Production Systems
2,818
400
2,944
442
2,207
205
Eliminations & other
(157)
(34)
(164)
(71)
(129)
7
Pretax segment operating income
1,649
1,868
1,391
Corporate & other
(191)
(193)
(169)
Interest income(1)
34
30
17
Interest expense(1)
(110)
(126)
(114)
Charges & credits(2)
(25)
(146)
36
$8,707
$1,357
$8,990
$1,433
$7,736
$1,161
(1)
Excludes amounts, which are included in
the segments’ results.
(2)
See section entitled “Charges &
Credits” for details.
Supplementary Information
Frequently Asked Questions
1)
What is the capital investment guidance
for the full-year 2024?
Capital investment (consisting of capex,
exploration data costs, and APS investments) for the full-year 2024
is expected to be approximately $2.6 billion, which is the same
level as full-year 2023.
2)
What were cash flow from operations and
free cash flow for the first quarter of 2024?
Cash flow from operations for the first
quarter of 2024 was $327 million and free cash flow was negative
$222 million.
3)
What was included in “Interest &
other income” for the first quarter of 2024?
“Interest & other income” for the
first quarter of 2024 was $84 million. This consisted of interest
income of $38 million and earnings of equity method investments of
$46 million.
4)
How did interest income and interest
expense change during the first quarter of 2024?
Interest income of $38 million for the
first quarter of 2024 decreased $2 million sequentially. Interest
expense of $113 million decreased $17 million sequentially.
5)
What is the difference between SLB’s
consolidated income before taxes and pretax segment operating
income?
The difference consists of corporate
items, charges and credits, and interest income and interest
expense not allocated to the segments, as well as stock-based
compensation expense, amortization expense associated with certain
intangible assets, certain centrally managed initiatives, and other
nonoperating items.
6)
What was the effective tax rate (ETR)
for the first quarter of 2024?
The ETR for the first quarter of 2024,
calculated in accordance with GAAP, was 19.1% as compared to 19.9%
for the fourth quarter of 2023. Excluding charges and credits, the
ETR for the first quarter of 2024 was 19.1% and for the fourth
quarter of 2023 was 18.5%.
7)
How many shares of common stock were
outstanding as of March 31, 2024, and how did this change from the
end of the previous quarter?
There were 1.429 billion shares of common
stock outstanding as of March 31, 2024, and 1.427 billion shares
outstanding as of December 31, 2023.
(Stated in millions) Shares outstanding at December 31, 2023
1,427
Shares issued under employee stock purchase plan
2
Shares issued to optionees, less shares exchanged
-
Vesting of restricted stock
5
Stock repurchase program
(5)
Shares outstanding at March 31, 2024
1,429
8)
What was the weighted average number of shares outstanding
during the first quarter of 2024 and fourth quarter of 2023? How
does this reconcile to the average number of shares outstanding,
assuming dilution, used in the calculation of diluted earnings per
share?
The weighted average number of shares
outstanding was 1.431 billion during the first quarter of 2024 and
1.429 billion during the fourth quarter of 2023. The following is a
reconciliation of the weighted average shares outstanding to the
average number of shares outstanding, assuming dilution, used in
the calculation of diluted earnings per share.
(Stated in millions)
First Quarter2024 Fourth Quarter2023
Weighted average shares outstanding
1,431
1,429
Unvested restricted stock
15
16
Assumed exercise of stock options
1
1
Average shares outstanding, assuming dilution
1,447
1,446
9)
What was SLB’s adjusted EBITDA in the first quarter of 2024,
the fourth quarter of 2023, and the first quarter of 2023?
SLB’s adjusted EBITDA was $2.057 billion
in the first quarter of 2024, $2.277 billion in the fourth quarter
of 2023, and $1.788 billion in the first quarter of 2023, and was
calculated as follows:
(Stated in millions)
First Quarter2024 Fourth Quarter2023
First Quarter2023 Net income attributable to SLB
$1,068
$1,113
$934
Net income attributable to noncontrolling interests
30
36
10
Tax expense
259
284
217
Income before taxes
$1,357
$1,433
$1,161
Charges & credits
25
146
(36)
Depreciation and amortization
600
609
563
Interest expense
113
130
117
Interest income
(38)
(41)
(17)
Adjusted EBITDA
$2,057
$2,277
$1,788
Adjusted EBITDA represents income before taxes, excluding charges
& credits, depreciation and amortization, interest expense, and
interest income. Management believes that adjusted EBITDA is an
important profitability measure for SLB and that it provides useful
perspective on SLB’s underlying business results and operating
trends, and a means to evaluate SLB’s operations period over
period. Adjusted EBITDA is also used by management as a performance
measure in determining certain incentive compensation. Adjusted
EBITDA should be considered in addition to, not as a substitute for
or superior to, other measures of financial performance prepared in
accordance with GAAP.
10)
What were the components of depreciation and amortization
expense for the first quarter of 2024, the fourth quarter of 2023,
and the first quarter of 2023?
The components of depreciation and
amortization expense for the first quarter of 2024, the fourth
quarter of 2023, and the first quarter of 2023 were as follows:
(Stated in millions)
First Quarter2024 Fourth Quarter2023
First Quarter2023 Depreciation of fixed assets
$377
$380
$347
Amortization of intangible assets
81
83
76
Amortization of APS investments
113
111
91
Amortization of exploration data costs capitalized
29
35
49
$600
$609
$563
11)
What Divisions comprise SLB’s Core business and what was
their revenue and pretax operating income for the first quarter of
2024 and the first quarter of 2023?
SLB’s Core business comprises the
Reservoir Performance, Well Construction, and Production Systems
Divisions. SLB’s Core business revenue and pretax operating income
for the first quarter of 2024 and first quarter of 2023 are
calculated as follows:
Three Months Ended
Mar. 31,2024 Mar. 31,2023
Change
Revenue
Reservoir Performance
$1,725
$1,503
Well Construction
3,368
3,261
Production Systems
2,818
2,207
$7,911
$6,971
13%
Pretax Operating Income
Reservoir Performance
$339
$242
Well Construction
690
672
Production Systems
400
205
$1,429
$1,119
28%
Pretax Operating Margin
Reservoir Performance
19.7%
16.1%
Well Construction
20.5%
20.6%
Production Systems
14.2%
9.3%
18.1%
16.1%
202 bps
About SLB
SLB (NYSE: SLB) is a global technology company driving energy
innovation for a balanced planet. With a global presence in more
than 100 countries and employees representing almost twice as many
nationalities, we work each day on innovating oil and gas,
delivering digital at scale, decarbonizing industries, and
developing and scaling new energy systems that accelerate the
energy transition. Find out more at slb.com.
Conference Call Information
SLB will hold a conference call to discuss the earnings press
release and business outlook on Friday, April 19, 2024. The call is
scheduled to begin at 9:30 a.m. US Eastern time. To access the
call, which is open to the public, please contact the conference
call operator at +1 (844) 721-7241 within North America, or +1
(409) 207-6955 outside North America, approximately 10 minutes
prior to the call’s scheduled start time, and provide the access
code 8858313. At the conclusion of the conference call, an audio
replay will be available until May 19, 2024, by dialing +1 (866)
207-1041 within North America, or +1 (402) 970-0847 outside North
America, and providing the access code 4812789. The conference call
will be webcast simultaneously at www.slb.com/irwebcast on a
listen-only basis. A replay of the webcast will also be available
at the same website until May 19, 2024.
Forward-Looking Statements
This first-quarter 2024 earnings press release, as well as other
statements we make, contain “forward-looking statements” within the
meaning of the federal securities laws, which include any
statements that are not historical facts. Such statements often
contain words such as “expect,” “may,” “can,” “believe,” “predict,”
“plan,” “potential,” “projected,” “projections,” “precursor,”
“forecast,” “outlook,” “expectations,” “estimate,” “intend,”
“anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,”
“should,” “could,” “would,” “will,” “see,” “likely,” and other
similar words. Forward-looking statements address matters that are,
to varying degrees, uncertain, such as statements about our
financial and performance targets and other forecasts or
expectations regarding, or dependent on, our business outlook;
growth for SLB as a whole and for each of its Divisions (and for
specified business lines, geographic areas, or technologies within
each Division); oil and natural gas demand and production growth;
oil and natural gas prices; forecasts or expectations regarding
energy transition and global climate change; improvements in
operating procedures and technology; capital expenditures by SLB
and the oil and gas industry; our business strategies, including
digital and “fit for basin,” as well as the strategies of our
customers; our capital allocation plans, including dividend plans
and share repurchase programs; our APS projects, joint ventures,
and other alliances; the impact of the ongoing conflict in Ukraine
on global energy supply; access to raw materials; future global
economic and geopolitical conditions; future liquidity, including
free cash flow; and future results of operations, such as margin
levels. These statements are subject to risks and uncertainties,
including, but not limited to, changing global economic and
geopolitical conditions; changes in exploration and production
spending by our customers, and changes in the level of oil and
natural gas exploration and development; the results of operations
and financial condition of our customers and suppliers; the
inability to achieve our financial and performance targets and
other forecasts and expectations; the inability to achieve our
net-zero carbon emissions goals or interim emissions reduction
goals; general economic, geopolitical, and business conditions in
key regions of the world; the ongoing conflict in Ukraine; foreign
currency risk; inflation; changes in monetary policy by
governments; pricing pressure; weather and seasonal factors;
unfavorable effects of health pandemics; availability and cost of
raw materials; operational modifications, delays, or cancellations;
challenges in our supply chain; production declines; the extent of
future charges; the inability to recognize efficiencies and other
intended benefits from our business strategies and initiatives,
such as digital or new energy, as well as our cost reduction
strategies; changes in government regulations and regulatory
requirements, including those related to offshore oil and gas
exploration, radioactive sources, explosives, chemicals, and
climate-related initiatives; the inability of technology to meet
new challenges in exploration; the competitiveness of alternative
energy sources or product substitutes; and other risks and
uncertainties detailed in this press release and our most recent
Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities
and Exchange Commission (the “SEC”).
This press release also includes forward-looking statements
relating to the proposed transaction between SLB and ChampionX,
including statements regarding the benefits of the transaction and
the anticipated timing of the transaction. Factors and risks that
may impact future results and performance include, but are not
limited to, and in each case as a possible result of the proposed
transaction on each of SLB and ChampionX: the ultimate outcome of
the proposed transaction between SLB and ChampionX, including the
possibility that ChampionX stockholders will not adopt the merger
agreement in respect of the proposed transaction; the effect of the
announcement of the proposed transaction; the ability to operate
the SLB and ChampionX respective businesses, including business
disruptions; difficulties in retaining and hiring key personnel and
employees; the ability to maintain favorable business relationships
with customers, suppliers, and other business partners; the terms
and timing of the proposed transaction; the occurrence of any
event, change, or other circumstance that could give rise to the
termination of the proposed transaction; the anticipated or actual
tax treatment of the proposed transaction; the ability to satisfy
closing conditions to the completion of the proposed transaction
(including the adoption of the merger agreement in respect of the
proposed transaction by ChampionX stockholders); other risks
related to the completion of the proposed transaction and actions
related thereto; the ability of SLB and ChampionX to integrate the
business successfully and to achieve anticipated synergies and
value creation from the proposed transaction; the ability to secure
government regulatory approvals on the terms expected, at all or in
a timely manner; litigation and regulatory proceedings, including
any proceedings that may be instituted against SLB or ChampionX
related to the proposed transaction, as well as the risk factors
discussed in SLB’s and ChampionX’s most recent Forms 10-K, 10-Q,
and 8-K filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties
materialize (or the consequences of any such development changes),
or should our underlying assumptions prove incorrect, actual
results or outcomes may vary materially from those reflected in our
forward-looking statements. Forward-looking and other statements in
this press release regarding our environmental, social, and other
sustainability plans and goals are not an indication that these
statements are necessarily material to investors or required to be
disclosed in our filings with the SEC. In addition, historical,
current, and forward-looking environmental, social, and
sustainability-related statements may be based on standards for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions that are subject
to change in the future. Statements in this press release are made
as of the date of this release, and SLB disclaims any intention or
obligation to update publicly or revise such statements, whether as
a result of new information, future events, or otherwise.
Additional Information about the Transaction with ChampionX
and Where to Find It
In connection with the proposed transaction with ChampionX, SLB
intends to file with the Securities and Exchange Commission (the
“SEC”) a registration statement on Form S-4 (the “Form S-4”) that
will include a proxy statement of ChampionX and that also
constitutes a prospectus of SLB with respect to the shares of SLB
to be issued in the proposed transaction (the “proxy
statement/prospectus”). Each of SLB and ChampionX may also file
other relevant documents with the SEC regarding the proposed
transaction. This document is not a substitute for the Form S-4 or
proxy statement/prospectus or any other document that SLB or
ChampionX may file with the SEC. The definitive proxy
statement/prospectus (if and when available) will be mailed to
stockholders of ChampionX. INVESTORS AND SECURITY HOLDERS ARE URGED
TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS
AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS
WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY
AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE
THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. Investors and security holders will be able
to obtain free copies of the Form S-4 and the proxy
statement/prospectus (if and when available) and other documents
containing important information about SLB, ChampionX and the
proposed transaction, once such documents are filed with the SEC
through the website maintained by the SEC at http://www.sec.gov.
Copies of the documents filed with, or furnished to, the SEC by SLB
will be available free of charge on SLB’s website at
https://investorcenter.slb.com. Copies of the documents filed with,
or furnished to, the SEC by ChampionX will be available free of
charge on ChampionX’s website at https://investors.championx.com.
The information included on, or accessible through, SLB’s or
ChampionX’s website is not incorporated by reference into this
communication.
Participants in the Solicitation
SLB, ChampionX and certain of their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction.
Information about the directors and executive officers of SLB,
including a description of their direct or indirect interests, by
security holdings or otherwise, is set forth in SLB’s proxy
statement for its 2024 Annual General Meeting of Stockholders
(https://www.sec.gov/ix?doc=/Archives/edgar/data/0000087347/000130817924000033/lslb2024_def14a.htm),
which was filed with the SEC on February 22, 2024, including under
the sections entitled “Director Compensation”, “Security Ownership
by Management and Our Board”, “Compensation Discussion and
Analysis”, “2023 Compensation Decisions and Results”, “Elements of
2023 Total Compensation”, “Long-Term Equity Incentive Awards”,
“Executive Compensation Tables”, “Grants of Plan-Based Awards in
2023”, “Outstanding Equity Awards at Year-End 2023”, “Potential
Payments Upon Termination or Change in Control” and “Pay vs.
Performance Comparison”, and SLB’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2023
(https://www.sec.gov/ix?doc=/Archives/edgar/data/0000087347/000095017024006884/slb-20231231.htm),
which was filed with the SEC on January 24, 2024, including under
the sections entitled “Item 10. Directors, Executive Officers and
Corporate Governance”, “Item 11. Executive Compensation”, “Item 12.
Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters”, and “Item 13. Certain Relationships
and Related Transactions, and Director Independence”. Information
about the directors and executive officers of ChampionX, including
a description of their direct or indirect interests, by security
holdings or otherwise, is set forth in ChampionX’s proxy statement
for its 2024 Annual Meeting of Shareholders
(https://www.sec.gov/ix?doc=/Archives/edgar/data/0001723089/000172308924000079/championx-20240401.htm),
which was filed with the SEC on April 3, 2024, including under the
sections entitled “Executive Compensation Highlights”, “Director
Compensation”, “2023 Director Compensation Table”, “Security
Ownership of Certain Beneficial Owners and Management”,
“Compensation Discussion and Analysis”, “Key Compensation Overview
for 2023”, “Elements of Our Executive Compensation Program”,
“Long-Term Equity Incentive Compensation”, “Additional Executive
Compensation Governance Considerations”, “Executive Compensation
Tables”, “Potential Payments upon Termination or
Change-in-Control”, and “Pay-versus-Performance” and ChampionX’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2023
(https://www.sec.gov/ix?doc=/Archives/edgar/data/1723089/000172308924000011/championx-20231231.htm),
which was filed with the SEC on February 6, 2024, including under
the sections entitled “Item 10. Directors, Executive Officers and
Corporate Governance”, “Item 11. Executive Compensation”, “Item 12.
Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters” and “Item 13. Certain Relationships
and Related Transactions, and Director Independence”. Other
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the Form S-4
and the proxy statement/prospectus and other relevant materials to
be filed with the SEC regarding the proposed transaction when such
materials become available. Investors should read the Form S-4 and
the proxy statement/prospectus carefully when available before
making any voting or investment decisions. Investors may obtain
free copies of these documents from SLB or ChampionX using the
sources indicated above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240417469361/en/
Investors James R. McDonald – SVP, Investor Relations
& Industry Affairs, SLB Joy V. Domingo – Director of Investor
Relations, SLB Tel: +1 (713) 375-3535 Email:
investor-relations@slb.com
Media Josh Byerly – Vice President of Communications, SLB
Moira Duff – Director of External Communications, SLB Tel: +1 (713)
375-3407 Email: media@slb.com
Grafico Azioni Schlumberger (NYSE:SLB)
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Da Mag 2024 a Giu 2024
Grafico Azioni Schlumberger (NYSE:SLB)
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Da Giu 2023 a Giu 2024