- Revenue of $9.16 billion was steady sequentially and increased
10% year on year
- GAAP EPS of $0.83 increased 8% sequentially and 6% year on
year
- EPS, excluding charges and credits, of $0.89 increased 5%
sequentially and 14% year on year
- Net income attributable to SLB of $1.19 billion increased 7%
sequentially and 6% year on year
- Adjusted EBITDA of $2.34 billion increased 2% sequentially and
13% year on year
- Cash flow from operations was $2.45 billion and free cash flow
was $1.81 billion
- Board approved quarterly cash dividend of $0.275 per share
SLB (NYSE: SLB) today announced results for the third quarter of
2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20241016795721/en/
The exterior of the SLB headquarters in
Houston, Texas. (Photo: Business Wire)
Third-Quarter Results
(Stated in millions, except per share amounts)
Three Months
Ended Change Sept. 30,2024 Jun.
30,2024 Sept. 30,2023
Sequential
Year-on-year Revenue
$9,159
$9,139
$8,310
-
10%
Income before taxes - GAAP basis
$1,507
$1,421
$1,395
6%
8%
Income before taxes margin - GAAP basis
16.5%
15.5%
16.8%
91 bps
-33 bps
Net income attributable to SLB - GAAP basis
$1,186
$1,112
$1,123
7%
6%
Diluted EPS - GAAP basis
$0.83
$0.77
$0.78
8%
6%
Adjusted EBITDA*
$2,343
$2,288
$2,081
2%
13%
Adjusted EBITDA margin*
25.6%
25.0%
25.0%
55 bps
54 bps
Pretax segment operating income*
$1,902
$1,854
$1,683
3%
13%
Pretax segment operating margin*
20.8%
20.3%
20.3%
48 bps
51 bps
Net income attributable to SLB, excluding charges & credits*
$1,271
$1,224
$1,123
4%
13%
Diluted EPS, excluding charges & credits*
$0.89
$0.85
$0.78
5%
14%
Revenue by Geography International
$7,425
$7,452
$6,614
-
12%
North America
1,687
1,644
1,643
3%
3%
Other
47
43
53
n/m
n/m
$9,159
$9,139
$8,310
-
10%
(Stated in millions)
Three Months Ended Change
Sept. 30,2024 Jun. 30,2024 Sept. 30,2023
Sequential Year-on-year
Revenue by
Division Digital & Integration
$1,088
$1,050
$982
4%
11%
Reservoir Performance
1,823
1,819
1,680
-
9%
Well Construction
3,312
3,411
3,430
-3%
-3%
Production Systems
3,103
3,025
2,367
3%
31%
Other
(167)
(166)
(149)
n/m
n/m
$9,159
$9,139
$8,310
-
10%
Pretax Operating Income by Division
Digital & Integration
$386
$325
$314
19%
23%
Reservoir Performance
367
376
344
-2%
7%
Well Construction
714
742
759
-4%
-6%
Production Systems
519
473
319
10%
63%
Other
(84)
(62)
(53)
n/m
n/m
$1,902
$1,854
$1,683
3%
13%
Pretax Operating Margin by Division
Digital & Integration
35.5%
31.0%
32.0%
456 bps
353 bps
Reservoir Performance
20.1%
20.6%
20.5%
-53 bps
-37 bps
Well Construction
21.5%
21.7%
22.1%
-19 bps
-58 bps
Production Systems
16.7%
15.6%
13.5%
110 bps
325 bps
Other
n/m
n/m
n/m
n/m
n/m
20.8%
20.3%
20.3%
48 bps
51 bps
SLB acquired the Aker subsea
business during the fourth quarter of 2023 in connection with the
formation of the OneSubsea joint venture. The acquired business
generated revenue of $532 million during the third quarter of 2024.
Excluding the impact of this acquisition, SLB's global
third-quarter 2024 revenue increased 4% year on year; international
third-quarter 2024 revenue increased 4% year on year; and
Production Systems third-quarter 2024 revenue increased 9% year on
year. *These are non-GAAP financial measures. See sections
titled "Divisions" and Supplementary Information" for details. n/m
= not meaningful
SLB Expands Margins and Earnings, Despite Cautious Macro
Environment
“SLB delivered strong third-quarter results, achieving earnings
growth and margin expansion in line with our full-year adjusted
EBITDA margin goal of 25% or higher,” said SLB Chief Executive
Officer Olivier Le Peuch. “These results were achieved by our
ongoing focus on cost optimization, greater adoption of our digital
products and solutions, and the contribution of long-cycle projects
in deep water and gas.
“This performance was achieved despite an environment where
short-cycle activity growth softened, and some international
producers exercised cautious spending triggered by lower oil prices
and ample global supply, while land activity in the U.S. remained
subdued. Revenue grew in the Middle East & Asia and offshore
North America but was offset by a decline in Latin America, while
Europe & Africa held steady,” Le Peuch said.
Digital Leads Results as Customers Focus on Cloud Computing
and Automation
“As we continue to see the transformative impact of digital
technology across the industry, we delivered a 4% sequential
increase in Digital & Integration revenue. This was driven by
our digital business, which grew 7% sequentially and 25% year on
year. Digital & Integration pretax segment operating margin
expanded by 456 basis points (bps) sequentially, mostly driven by
our digital business.
“Our customers are increasingly embracing digital technology to
shorten planning cycle times, boost automation, and extract
efficiency. Our cloud-based platform offerings have emerged as
integral tools for unlocking data and AI across the energy value
chain, enabling data-driven decision-making and streamlined
operations. Our leadership in this area was on full display as we
welcomed more than 1,000 customers and partners to the SLB Digital
Forum in September to share progress, innovate together, and
explore new digital opportunities.
“At the event, we announced exciting new collaborations and
partnerships with NVIDIA, Amazon Web Services, Aramco, and others.
Additionally, we launched the Lumi™ data and AI platform, which
integrates advanced AI capabilities—including generative AI—with
workflows across the energy value chain. More details can be found
in the quarterly highlights of this release.
“In the Core Divisions—comprising Reservoir Performance, Well
Construction, and Production Systems—revenue was essentially flat
sequentially. Production Systems revenue increased 3% sequentially,
posting record quarterly revenue with pretax segment operating
margin expanding year on year for the ninth consecutive quarter.
Reservoir Performance revenue was flat sequentially, while Well
Construction revenue declined by 3% due to lower drilling
activities,” Le Peuch said.
With Strong Cash Flow, SLB Accelerates Returns to
Shareholders
“Overall, in the third quarter, we achieved an adjusted EBITDA
margin of 25.6%, a 55-bps sequential increase. Cash flow from
operations was $2.45 billion, and free cash flow was $1.81 billion.
Additionally, we returned close to $900 million to shareholders
through stock repurchases and dividends, bringing total return to
shareholders for the first nine months of the year to $2.38
billion.
“With strong cash flows and visibility into continued strong
cash flow generation, we have accelerated our share repurchase
program, taking advantage of current share price levels. We now
expect to exceed the $3.0 billion return to shareholders commitment
we made earlier this year.
“I would like to thank the SLB team for their unwavering
dedication and outstanding execution, consistently delivering for
both our customers and shareholders,” Le Peuch said.
International, Digital, and Cost Optimization to Remain the
Focus
“Although some customers have adopted a more cautious approach
to their near-term capital expenditures and discretionary spending
amid lower commodity prices, most projects are progressing as
planned. Recent geopolitical events have further highlighted the
importance of long-term energy security and reducing potential
supply disruptions.
“SLB is well positioned to navigate the evolving market
conditions by leveraging its unique exposure to long-cycle projects
in international, deepwater, and gas markets. Additionally, SLB’s
digital leadership and growing presence in emerging low-carbon
markets—such as carbon capture and storage and geothermal—are
supporting a more balanced portfolio.
“Although the rate of upstream spending growth has moderated in
the last few months due to the macroenvironment, we continue to
expect a sustained level of upstream investment in the years to
come. In this context, we anticipate delivering strong cash flows
and a full-year adjusted EBITDA margin at or above 25%, supported
by our international leadership, robust digital sales, and ongoing
cost optimization initiatives.
“Overall, our business remains well positioned to deliver
further margin expansion and increased returns to shareholders,” Le
Peuch said.
Other Events
During the quarter, SLB repurchased 11.3 million shares of its
common stock for a total purchase price of $501 million. For the
first nine months of the year, SLB repurchased a total of 26.6
million shares of its common stock for a total purchase price of
$1.24 billion.
On October 17, 2024, SLB entered into a definitive agreement to
sell its working interests in the Palliser Block located in
Alberta, Canada. The transaction, which is subject to regulatory
approval and other customary closing conditions, is expected to
close late in the fourth quarter of 2024.
On October 17, 2024, SLB’s Board of Directors approved a
quarterly cash dividend of $0.275 per share of outstanding common
stock, payable on January 9, 2025, to stockholders of record on
December 4, 2024.
Third-Quarter Revenue by Geographical Area
(Stated in millions)
Three Months Ended Change
Sept. 30,2024 Jun. 30,2024 Sept. 30,2023
Sequential
Year-on-year North America
$1,687
$1,644
$1,643
3%
3%
Latin America
1,689
1,742
1,681
-3%
-
Europe & Africa*
2,434
2,442
2,091
-
16%
Middle East & Asia
3,302
3,268
2,842
1%
16%
Eliminations & other
47
43
53
n/m
n/m
$9,159
$9,139
$8,310
-
10%
International
$7,425
$7,452
$6,614
-
12%
North America
$1,687
$1,644
$1,643
3%
3%
SLB acquired the Aker subsea business during the fourth
quarter of 2023 in connection with the formation of the OneSubsea
joint venture. The acquired business generated revenue of $532
million during the third quarter of 2024. Excluding the impact of
this acquisition, SLB's global third-quarter 2024 revenue increased
4% year on year and international third-quarter 2024 revenue
increased 4% year on year. *Includes Russia and the Caspian
region n/m = not meaningful
International
Revenue in Latin America of $1.69 billion decreased 3%
sequentially, reflecting lower production system sales in Brazil
and reduced drilling activity in Mexico and Guyana. Year over year,
revenue was flat, as strong activity in Argentina and higher
production system sales in Brazil were offset by drilling activity
declines in Mexico.
Europe & Africa revenue of $2.44 billion was flat
sequentially as higher sales of artificial lift in North Africa
were offset by lower sales of subsea production systems in
Scandinavia and reduced drilling, intervention, and stimulation
activity in sub-Saharan Africa. Year on year, revenue increased 16%
driven by the acquired Aker subsea business, primarily in
Scandinavia, and increased drilling, intervention, and stimulation
activity in North Africa.
Revenue in the Middle East & Asia of $3.30 billion
increased 1% sequentially, with strong sales of production systems
in Australia, Saudi Arabia, Iraq, Kuwait, and Qatar and increased
drilling in East Asia and United Arab Emirates offsetting weaker
performance in Egypt and India. Year on year, revenue grew 16% due
to higher stimulation, intervention, and evaluation activity as
well as increased sales of production systems in Saudi Arabia, UAE,
Iraq, Kuwait, Qatar, and Oman. Increased drilling in East Asia and
Indonesia and the acquired Aker subsea business in Australia also
contributed to the year-on-year growth.
North America
North America revenue of $1.69 billion increased 3%
sequentially due to strong sales of production systems in the U.S.
Gulf of Mexico and higher drilling in Canada land, partially offset
by lower drilling revenue in U.S. land. Year on year, revenue
increased 3% due to higher sales of subsea production systems and
increased evaluation and stimulation activity in the U.S. Gulf of
Mexico, partially offset by lower drilling revenue in U.S.
land.
Third-Quarter Results by Division
Digital & Integration
(Stated in millions)
Three Months Ended Change
Sept. 30,2024 Jun. 30,2024 Sept. 30,2023
Sequential
Year-on-year Revenue International
$830
$757
$737
10%
13%
North America
258
291
242
-11%
6%
Other
-
2
3
n/m
n/m
$1,088
$1,050
$982
4%
11%
Pretax operating income
$386
$325
$314
19%
23%
Pretax operating margin
35.5%
31.0%
32.0%
456 bps
353 bps
n/m = not meaningful
Digital & Integration revenue of $1.09 billion increased 4%
sequentially due to higher digital revenue while Asset Performance
Solutions (APS) revenue was flat. Digital revenue grew 7%
sequentially driven by the increased adoption internationally of
our cloud, AI, and edge technology platforms. Year on year, revenue
increased 11% due to digital growing 25%, while APS revenue
declined 3%.
Digital & Integration pretax operating margin of 36%
expanded 456 bps sequentially, mostly due to improved profitability
in digital, following higher uptake of digital products and
solutions and cost efficiencies. Year on year, pretax operating
margin expanded 353 bps due to increased profitability in digital,
partially offset by lower profitability in APS from the effects of
higher amortization expense and lower gas prices.
Reservoir Performance
(Stated in millions)
Three Months Ended Change
Sept. 30,2024 Jun. 30,2024 Sept. 30,2023
Sequential
Year-on-year Revenue International
$1,676
$1,684
$1,554
-
8%
North America
145
134
125
8%
16%
Other
2
1
1
n/m
n/m
$1,823
$1,819
$1,680
-
9%
Pretax operating income
$367
$376
$344
-2%
7%
Pretax operating margin
20.1%
20.6%
20.5%
-53 bps
-37 bps
n/m = not meaningful
Reservoir Performance revenue of $1.82 billion was flat
sequentially as higher intervention activity was offset by lower
evaluation activity while stimulation revenue was flat.
Geographically, revenue grew in offshore North America and Latin
America, partially offset by declines in Europe & Africa and
Middle East & Asia. Year on year, revenue increased 9% due to
increased stimulation and intervention activity, partially offset
by lower evaluation revenue.
Reservoir Performance pretax operating margin of 20% contracted
53 bps sequentially due to lower profitability in evaluation,
partially offset by improved profitability in intervention. Year on
year, pretax operating margin contracted 37 bps due to an
unfavorable technology mix.
Well Construction
(Stated in millions)
Three Months Ended Change
Sept. 30,2024 Jun. 30,2024 Sept. 30,2023
Sequential
Year-on-year Revenue International
$2,675
$2,768
$2,707
-3%
-1%
North America
581
592
663
-2%
-12%
Other
56
51
60
n/m
n/m
$3,312
$3,411
$3,430
-3%
-3%
Pretax operating income
$714
$742
$759
-4%
-6%
Pretax operating margin
21.5%
21.7%
22.1%
-19 bps -58 bps n/m = not meaningful
Well Construction revenue of $3.31 billion declined 3%
sequentially and year on year on lower revenue in measurements and
fluids. This was driven by lower drilling activity in Latin
America, U.S. land, and Saudi Arabia.
Well Construction pretax operating margin of 22% declined 19 bps
sequentially and 58 bps year on year due to reduced activity both
in North America and internationally.
Production Systems
(Stated in millions)
Three Months Ended Change
Sept. 30,2024 Jun. 30,2024 Sept. 30,2023
Sequential
Year-on-year Revenue International
$2,373
$2,378
$1,740
-
36%
North America
723
640
626
13%
15%
Other
7
7
1
n/m
n/m
$3,103
$3,025
$2,367
3%
31%
Pretax operating income
$519
$473
$319
10%
63%
Pretax operating margin
16.7%
15.6%
13.5%
110 bps 325 bps SLB acquired the Aker subsea business
during the fourth quarter of 2023 in connection with the formation
of the OneSubsea joint venture. The acquired business generated
revenue of $532 million during the third quarter of 2024. Excluding
the impact of this acquisition, Production Systems third-quarter
2024 revenue increased 9% year on year. n/m = not meaningful
Production Systems revenue of $3.10 billion increased 3%
sequentially with growth led by higher sales of surface production
systems, completions, and artificial lift, partially offset by
reduced sales of subsea and midstream production systems. Year on
year, revenue grew 31%, mainly due to the acquisition of the Aker
subsea business and strong international sales across the
portfolio.
Production Systems pretax operating margin of 17% expanded 110
bps sequentially with improved profitability in surface production
systems, completions, and artificial lift. Year on year, pretax
operating margin expanded 325 bps due to improved profitability in
surface production systems, artificial lift, and valves.
Quarterly Highlights
CORE
Contract Awards
SLB continues to win new contract awards that align with SLB’s
strengths in the Core, particularly in the international and
offshore basins. Notable highlights include the following:
- In the UAE, SLB, ADNOC Drilling Company, and Patterson-UTI
announced the formation of the Turnwell Industries LLC OPC joint
venture (JV). The JV will focus on the acceleration of UAE’s
unconventional oil and gas program, with an initial 144 wells
scheduled for completion by the end of 2025. SLB will provide
integrated drilling, stimulation, and completion services, as well
as project management, digital capabilities, and subsurface
support.
- In Kuwait, Kuwait Oil Company (KOC) has awarded SLB a lump sum
turnkey (LSTK) drilling contract to drill and deliver wells in
south and east Kuwait. SLB will manage the planning, construction,
and drilling of 141 wells over a period of three years. This LSTK
contract will enable improved efficiency and faster deployment of
technologies.
- In Oman, Shell Development Oman LLC has awarded SLB a two-year
integrated well construction contract covering up to 23 wells in
Block 10 and Block 11 with the potential to extend an additional
three years. SLB will provide bits and drilling tools, cementing,
drilling fluids, drilling services, and mud logging.
- In the North Sea, bp awarded SLB OneSubsea™ and Subsea7 an
integrated engineering, procurement, construction, and installation
contract for the Murlach development (formerly Skua Field), 240
kilometers east of Aberdeen in the U.K. North Sea. The Murlach
project will include the first-ever implementation of SLB OneSubsea
standard, configurable vertical monobore tree systems in the U.K.
North Sea, which will be deployed by Subsea7 via vessel to reduce
rig days.
- In Brazil, Petrobras awarded SLB OneSubsea a major contract for
two ultradeepwater projects. The contract covers standardized
presalt subsea production systems and services to develop the Atapu
and Sepia oil fields in the Santos Basin. SLB OneSubsea will supply
Petrobras-standard configured presalt vertical trees, subsea
distribution units, control systems, and pipeline systems, along
with related installation, commissioning, and life-of-field
services. These projects will add to Petrobras' presalt investments
and enable Petrobras to add two new FPSO platforms, each with a
daily capacity of 225,000 barrels of oil and 10 million cubic
meters of gas.
- Also in Brazil, Equinor awarded SLB a contract for the
deepwater development of the Raia Project with first oil expected
in 2028. SLB will provide directional drilling services, fluids,
cementing, and logging and completion tools for six wells. The area
contains a recoverable volume of natural gas and oil condensate of
more than 1 billion barrels of oil equivalent.
- Also in Brazil, Petrobras awarded SLB a 10-year contract for
the delivery of encapsulated submersible pump services for up to
200 systems in Bahia state. This performance-based contract
underscores the reliability and excellence of SLB equipment and
services.
- Offshore Norway, Equinor awarded SLB a multiyear integrated
drilling and reservoir evaluation contract spanning a wide range of
operations. This includes integrated drilling and wireline services
for an exploration drilling campaign on the Norwegian continental
shelf; IriSphere™ look-ahead-while-drilling service for Stage II of
the Troll Phase 3 project; wireline services for an exploration
drilling campaign in the Barents Sea; and drilling and wireline
services in the Irpa subsea development to create a tieback that
extends the lifespan of Aasta Hansteen Field. Work for this
integrated-domain contract will begin in 2025.
- In Namibia, an operator awarded SLB a three-year integrated
contract for well construction and reservoir characterization
services. This contract includes the utilization of the SLB Ora™
intelligent wireline formation testing platform.
Technology and Innovation
Notable technology introductions and deployment in the quarter
include the following:
- In the U.S., ExxonMobil and SLB collaborated on the longest
well section in the Permian Basin, delivering the first-ever
four-mile well in the Second Bone Spring formation. Utilizing SLB’s
PowerDrive Orbit G2™ rotary steerable system with a ruggedized pad
design, the single-run lateral was achieved by steering at a
complex high angle in harsh downhole conditions. This approach also
led to a significant reduction in drilling time, releasing the well
in 16.4 days.
- In Kuwait, SLB and KOC implemented an advanced well
intervention workflow, integrating distributed temperature sensing,
3D far-field sonic service, and production logging tools. Deploying
ACTive™ real-time downhole coiled tubing services, SLB provided
detailed reservoir insights and enabled the precise deployment of
engineered stimulation fluids. This intervention identified a
critical thief zone, mapped the surrounding microfractures, and
improved water intake patterns, ultimately resulting in an increase
of 200 barrels of oil per day from four nearby wells. One
previously shut-in well achieved 1,800 barrels of oil per day
postintervention. Based on this success, KOC has approved the
expansion of this workflow across the Sabriyah Mauddud flank, with
four additional wells slated for similar interventions.
- In Angola, SLB and TotalEnergies deployed the first offshore
application of OneSTEP EF™ efficient, low-risk sandstone
stimulation solution in the Canela Field. The candidate well,
situated in a sandstone reservoir, faced multiple damage
mechanisms, including mudcake, lost circulation material, organic
deposits, silt, clay, and fines migration. After deploying the
solution, the well's flow rate increased by 250% and has become
TotalEnergies' top producing well in Angola.
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 U.S., SLB OneSubsea has signed a memorandum of
understanding with C-Power to explore the use of converted energy
from ocean waves as a lower-cost, lower-carbon power source for
subsea energy applications. The joint industry project, cosponsored
by the U.S. Department of Energy, will be conducted by SLB
OneSubsea in collaboration with its Integration Alliance partner,
Subsea7.
- In Norway, SLB and Equinor successfully deployed the world’s
first offshore electric-powered light-string coiled tubing package.
This innovative package was designed together with Equinor to
bridge the gap between conventional offshore wireline and coiled
tubing capabilities. When compared with the traditional coiled
tubing package, the light-string package requires 48% less rig
floor footprint, 33% fewer personnel on board, and up to 75% less
rig-up and rig-down time. In its first job, the light-string coiled
tubing package performed a downhole cleanout operation 75% faster
than would have been possible with conventional wireline.
DIGITAL
SLB is deploying digital technology at scale, partnering with
customers to migrate their technology and workflows into the cloud,
to embrace new AI-enabled capabilities, and to leverage insights to
elevate their performance. Notable highlights include the
following:
- SLB launched the Lumi data and AI platform, which integrates
advanced AI capabilities—including generative AI—with workflows
across the energy value chain. The open, secure, and modular
platform unlocks access to high-quality data across subsurface,
surface, planning, and operations, increasing cross-domain
collaboration and releasing new intelligence and insights to
improve the quality and speed of decision-making at the enterprise
level.
- SLB and NVIDIA announced that they will build on their
long-standing collaboration to develop generative AI solutions for
the energy industry. Working together, the companies will build and
optimize models to the specific needs and requirements of the
data-intensive energy industry, including subsurface exploration,
production operations, and data management. The collaboration
accelerates the development and deployment of industry-specific
generative AI models across SLB’s global platforms, including its
Delfi™ digital platform and Lumi data and AI platform.
- SLB and Amazon Web Services (AWS) announced an extended
partnership to expand access to applications from the Delfi digital
platform. Energy Data Insights from AWS will also offer
compatibility with SLB’s new Lumi data and AI platform. SLB and
Amazon have also entered into a multiyear strategic framework
agreement to explore the deployment of low-carbon
technologies.
- SLB and Palo Alto Networks announced an expanded collaboration
to strengthen cybersecurity for the energy sector. The companies
will combine SLB’s cloud and edge technologies and domain expertise
in the energy industry with Palo Alto Networks’ cross-industry,
platform-based cybersecurity solutions. This will not only help SLB
remain on the forefront with its own security infrastructure but
will also help drive future enhanced solutions to address evolving
cyber threats as the industry’s adoption of digital solutions and
artificial intelligence accelerates.
- SLB and Aramco have signed an agreement with the aim of
codeveloping, commercializing, and utilizing digital solutions to
help mitigate greenhouse gas emissions in industrial sectors. The
agreement establishes a framework for the development of several
digital solutions on SLB’s digital sustainability platform that
will enable industrial companies to accelerate their progress
toward net zero by more easily measuring, reporting, and verifying
their emissions.
- In Australia, Woodside Energy has awarded SLB a three-year
digital frame agreement, which incorporates global subsurface data
management, software provisioning, Delfi on-demand reservoir
simulation, and onsite support services. SLB will help Woodside
Energy to standardize an enterprise-scale data management solution,
while also providing a full suite of software products and compute
scalability via the Delfi platform for reservoir simulations.
NEW ENERGY
SLB continues to participate in the global transition to
low-carbon energy systems through innovative technology and
strategic partnerships, including the following:
- In Nevada, SLB achieved breakthrough results in sustainable
lithium production. Using a proprietary integrated solution that
combines SLB’s subsurface expertise with surface engineering of
advanced technologies that include direct lithium extraction (DLE),
SLB was able to produce lithium at a rate 500 times faster than
conventional methods while using only 10% of the land. The plant
reached a verified recovery rate of 96% lithium from brine while
using significantly less water, energy, and fewer chemical reagents
in comparison with other lithium mining techniques.
- In the U.S., SLB Capturi™, the newly formed joint venture
between SLB and Aker Carbon Capture, was awarded a contract by
CO280 Solutions for front end engineering and design (FEED) of a
large-scale carbon capture plant at a pulp and paper mill on the
U.S. Gulf Coast. The project, which aims to remove 800,000 metric
tons of carbon emissions annually, will also deliver permanent,
verifiable, and affordable carbon dioxide removals (CDRs). This
follows recent announcements by SLB Capturi and CO280 on their
collaboration to develop large-scale CDR projects in the U.S. and
Canada pulp and paper industries and their collaboration with
Microsoft® to scale the full value chain of carbon removal.
- Also in the U.S., SLB Capturi has secured funding from the U.S.
Department of Energy’s Office of Clean Energy Demonstrations for
the first phase of two carbon capture projects. These projects,
which commenced in August 2024 with a FEED study, involve deploying
carbon capture systems at Basin Electric’s Dry Fork Station in
Wyoming and International Paper’s Vicksburg Containerboard Mill in
Mississippi. The projects are undertaken in partnership with TDA
Research for the Wyoming project and with RTI International,
International Paper, and Amazon, for the Mississippi project. The
combined aim of these projects is to capture 278,000 metric tons of
CO2 annually, demonstrating the potential of early-stage carbon
capture technologies for achieving significant emissions
reductions.
- In Norway, SLB launched a well integrity assessment solution
that simplifies carbon storage site selection and evaluation by
quantifying well integrity risks in mature or retired oil and gas
fields. SLB's solution incorporates advanced failure mode, effects,
and criticality analysis to assess potential leakage pathways, well
barriers, failure mechanisms, and resulting consequences; helping
customers understand the risks associated with each well, inform
remediation strategies, and, ultimately, estimate project
viability.
FINANCIAL TABLES
Condensed Consolidated Statement of Income
(Stated in millions, except per
share amounts)
Third Quarter Nine Months Periods Ended September 30,
2024
2023
2024
2023
Revenue
$9,159
$8,310
$27,005
$24,145
Interest & other income (1)
96
73
265
247
Expenses Cost of revenue (1)
7,237
6,592
21,506
19,378
Research & engineering
187
186
557
524
General & administrative
90
81
305
268
Merger & integration (1)
33
-
60
-
Restructuring (1)
65
-
176
-
Interest
136
129
381
373
Income before taxes (1)
$1,507
$1,395
$4,285
$3,849
Tax expense (1)
289
259
824
722
Net income (1)
$1,218
$1,136
$3,461
$3,127
Net income attributable to noncontrolling interests (1)
32
13
95
36
Net income attributable to SLB (1)
$1,186
$1,123
$3,366
$3,091
Diluted earnings per share of SLB (1)
$0.83
$0.78
$2.34
$2.14
Average shares outstanding
1,417
1,424
1,425
1,424
Average shares outstanding assuming dilution
1,432
1,442
1,441
1,442
Depreciation & amortization included in expenses (2)
$640
$579
$1,871
$1,703
(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)
Sept. 30, Dec. 31, Assets
2024
2023
Current Assets Cash and short-term investments
$4,462
$3,989
Receivables
8,260
7,812
Inventories
4,573
4,387
Other current assets
1,506
1,530
18,801
17,718
Investment in affiliated companies
1,744
1,624
Fixed assets
7,360
7,240
Goodwill
14,559
14,084
Intangible assets
3,122
3,239
Other assets
4,189
4,052
$49,775
$47,957
Liabilities and Equity Current Liabilities Accounts payable
and accrued liabilities
$10,346
$10,904
Estimated liability for taxes on income
888
994
Short-term borrowings and current portion of long-term debt
1,059
1,123
Dividends payable
406
374
12,699
13,395
Long-term debt
11,864
10,842
Other liabilities
2,484
2,361
27,047
26,598
Equity
22,728
21,359
$49,775
$47,957
Liquidity
(Stated in millions)
Components of Liquidity
Sept. 30,
2024
Jun. 30,
2024
Sept. 30,
2023
Dec. 31,
2023
Cash and short-term investments
$4,462
$4,003
$3,735
$3,989
Short-term borrowings and current portion of long-term debt
(1,059)
(1,033)
(1,998)
(1,123)
Long-term debt
(11,864)
(12,156)
(11,147)
(10,842)
Net Debt (1)
$(8,461)
$(9,186)
$(9,410)
$(7,976)
Details of changes in liquidity follow:
Nine
Third
Nine
Months
Quarter
Months
Periods Ended September 30,
2024
2024
2023
Net income
$3,461
$1,218
$3,127
Charges and credits, net of tax (2)
231
92
(28)
3,692
1,310
3,099
Depreciation and amortization (3)
1,871
640
1,703
Stock-based compensation expense
244
71
218
Change in working capital
(1,731)
313
(1,353)
Other
136
115
(52)
Cash flow from operations
4,212
2,449
3,615
Capital expenditures
(1,322)
(460)
(1,345)
APS investments
(390)
(134)
(391)
Exploration data capitalized
(141)
(50)
(121)
Free cash flow (4)
2,359
1,805
1,758
Dividends paid
(1,144)
(393)
(961)
Stock repurchase program
(1,236)
(501)
(594)
Proceeds from employee stock plans
244
124
276
Business acquisitions and investments, net of cash acquired
(552)
(47)
(280)
Purchases of Blue Chip Swap securities
(136)
(60)
(169)
Proceeds from sale of Blue Chip Swap securities
92
41
91
Proceeds from sale of Liberty shares
-
-
137
Taxes paid on net settled stock-based compensation awards
(86)
(8)
(162)
Other
27
(12)
(194)
(Increase) decrease in net debt before impact of changes in
foreign exchange rates
(432)
949
(98)
Impact of changes in foreign exchange rates on net debt
(53)
(224)
20
(Increase) decrease in Net Debt
(485)
725
(78)
Net Debt, beginning of period
(7,976)
(9,186)
(9,332)
Net Debt, end of period
$(8,461)
$(8,461)
$(9,410)
(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
U.S. generally accepted accounting principles (GAAP), this
third-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)
Third Quarter 2024 Pretax Tax Noncont.Interests Net
DilutedEPS SLB net income (GAAP basis)
$1,507
$289
$32
$1,186
$0.83
Restructuring (1)
65
10
-
55
0.04
Merger & integration (2)
47
10
7
30
0.02
SLB net income, excluding charges & credits
$1,619
$309
$39
$1,271
$0.89
Second Quarter 2024 Pretax Tax Noncont.Interests Net
DilutedEPS SLB net income (GAAP basis)
$1,421
$276
$33
$1,112
$0.77
Restructuring (1)
111
17
-
94
0.07
Merger & integration (2)
31
5
8
18
0.01
SLB net income, excluding charges & credits
$1,563
$298
$41
$1,224
$0.85
Nine Months 2024 Pretax Tax Noncont.Interests Net DilutedEPS
SLB net income (GAAP basis)
$4,285
$824
$95
$3,366
$2.34
Restructuring (1)
176
27
-
149
0.10
Merger & integration (3)
103
21
20
62
0.04
SLB net income, excluding charges & credits
$4,564
$872
$115
$3,577
$2.48
Nine Months 2023 Pretax Tax Noncont.Interests Net DilutedEPS
SLB net income (GAAP basis)
$3,849
$722
$36
$3,091
$2.14
Gain on sale of Liberty shares (4)
(36)
(8)
-
(28)
(0.02)
SLB net income, excluding charges & credits
$3,813
$714
$36
$3,063
$2.12
(1)
Classified in Restructuring in the
Condensed Consolidated Statement of Income.
(2)
During the third quarter of 2024, $14
million of these charges were classified in Cost of revenue in the
Condensed Consolidation Statement of Income with the remaining $33
million classified in Merger & integration. During the second
quarter of 2024, $15 million of these charges were classified in
Cost of revenue with the remaining $16 million classified in Merger
& integration.
(3)
During the nine months of 2024, $43
million of these charges were classified in Cost of Revenue in the
Condensed Consolidation Statement of Income with the remaining $60
million classified in Merger & integration.
(4)
Classified in Interest & other income
in the Condensed Consolidated Statement of Income.
There were no charges or credits during the third quarter of
2023.
Divisions
(Stated in millions)
Three Months Ended
Sept. 30, 2024 Jun. 30, 2024 Sept. 30, 2023
Revenue IncomeBeforeTaxes Revenue IncomeBeforeTaxes
Revenue IncomeBeforeTaxes Digital & Integration
$1,088
$386
$1,050
$325
$982
$314
Reservoir Performance
1,823
367
1,819
376
1,680
344
Well Construction
3,312
714
3,411
742
3,430
759
Production Systems
3,103
519
3,025
473
2,367
319
Eliminations & other
(167)
(84)
(166)
(62)
(149)
(53)
Pretax segment operating income
1,902
1,854
1,683
Corporate & other
(187)
(191)
(182)
Interest income(1)
36
29
20
Interest expense(1)
(132)
(129)
(126)
Charges & credits(2)
(112)
(142)
-
$9,159
$1,507
$9,139
$1,421
$8,310
$1,395
(Stated in millions)
Nine
Months Ended Sept. 30, 2024 Sept. 30, 2023
Revenue IncomeBeforeTaxes Revenue
IncomeBeforeTaxes Digital & Integration
$3,091
$965
$2,822
$901
Reservoir Performance
5,369
1,082
4,826
892
Well Construction
10,090
2,145
10,052
2,162
Production Systems
8,946
1,392
6,888
802
Eliminations & other
(491)
(180)
(443)
(102)
Pretax segment operating income
5,404
4,655
Corporate & other
(568)
(536)
Interest income(1)
98
57
Interest expense(1)
(370)
(363)
Charges & credits(2)
(279)
36
$27,005
$4,285
$24,145
$3,849
(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 still expected to be approximately $2.60 billion, which is the
same level as full-year 2023.
2)
What were cash flow from operations and
free cash flow for the third quarter of 2024?
Cash flow from operations for the third
quarter of 2024 was $2.45 billion and free cash flow was $1.81
billion.
3)
What was included in “Interest &
other income” for the third quarter of 2024?
“Interest & other income” for the
third quarter of 2024 was $96 million. This consisted of interest
income of $52 million and earnings of equity method investments of
$44 million.
4)
How did interest income and interest
expense change during the third quarter of 2024?
Interest income of $52 million for the
third quarter of 2024 increased $14 million sequentially. Interest
expense of $136 million increased $4 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 third quarter of 2024?
The ETR for the third quarter of 2024,
calculated in accordance with GAAP, was 19.2% as compared to 19.4%
for the second quarter of 2024. Excluding charges and credits, the
ETR for both the third quarter of 2024 and for the second quarter
of 2024 was 19.1%.
7)
How many shares of common stock were
outstanding as of September 30, 2024, and how did this change from
the end of the previous quarter?
There were 1.412 billion shares of common
stock outstanding as of September 30, 2024, and 1.420 billion
shares outstanding as of June 30, 2024.
(Stated in millions)
Shares outstanding at June 30, 2024
1,420
Shares issued under employee stock purchase plan
3
Shares issued to optionees, less shares exchanged
-
Vesting of restricted stock
-
Stock repurchase program
(11)
Shares outstanding at September 30, 2024
1,412
8)
What was the weighted average number of
shares outstanding during the third quarter of 2024 and second
quarter of 2024? 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 1.417 billion during the third quarter of 2024 and
1.428 billion during the second quarter of 2024. 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.
Third Quarter 2024
(Stated in millions) Second
Quarter 2024
Weighted average shares outstanding
1,417
1,428
Unvested restricted stock
14
14
Assumed exercise of stock options
1
1
Average shares outstanding, assuming dilution
1,432
1,443
9)
What was SLB’s adjusted EBITDA in the
third quarter of 2024, the second quarter of 2024, the third
quarter of 2023, the first nine months of 2024, and the first nine
months of 2023? What was SLB’s adjusted EBITDA margin for those
periods?
SLB’s adjusted EBITDA was $2.343 billion
in the third quarter of 2024, $2.288 billion in the second quarter
of 2024, and $2.081 billion in the third quarter of 2023. SLB’s
adjusted EBITDA margin was 25.6% in the third quarter of 2024 and
25.0% in both the second quarter of 2024 and the third quarter of
2023.
(Stated in millions) Third
Quarter 2023
Third Quarter2024 Second Quarter2024 Net
income attributable to SLB
$1,186
$1,112
$1,123
Net income attributable to noncontrolling interests
32
33
13
Tax expense
289
276
259
Income before taxes
$1,507
$1,421
$1,395
Charges & credits
112
142
-
Depreciation and amortization
640
631
579
Interest expense
136
132
129
Interest income
(52)
(38)
(22)
Adjusted EBITDA
$2,343
$2,288
$2,081
Revenue
$9,159
$9,139
$8,310
Adjusted EBITDA margin
25.6%
25.0%
25.0%
SLB’s adjusted EBITDA was $6.687 billion
for the nine months ended September 30, 2024, and $5.830 billion
for the nine months ended September 30, 2023. SLB’s adjusted EBITDA
margin was 24.8% for the nine months ended September 30, 2024, and
24.1% for the nine months ended September 30, 2023.
(Stated in millions)
Nine Months2024 Nine
Months2023
Change
Net income attributable to SLB
$3,366
$3,091
Net income attributable to noncontrolling interests
95
36
Tax expense
824
722
Income before taxes
$4,285
$3,849
Charges & credits
279
(36)
Depreciation and amortization
1,871
1,703
Interest expense
381
373
Interest income
(129)
(59)
Adjusted EBITDA
$6,687
$5,830
15%
Revenue
$27,005
$24,145
12%
Adjusted EBITDA margin
24.8%
24.1%
62 bps
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 third quarter of
2024, the second quarter of 2024, and the third quarter of 2023,
the first nine months of 2024, and the first nine months of
2023?
The components of depreciation and
amortization expense for the third quarter of 2024, the second
quarter of 2024, and the third quarter of 2023 were as follows:
(Stated in millions)
Third Quarter2024 Second
Quarter2024 Third Quarter2023 Depreciation of fixed assets
$394
$384
$365
Amortization of intangible assets
87
82
78
Amortization of APS investments
124
118
107
Amortization of exploration data costs capitalized
35
47
29
$640
$631
$579
The components of depreciation and
amortization expense for the nine months ended September 30, 2024,
and the nine months ended September 30, 2023, were as follows:
(Stated in millions)
Nine Months2024 Nine Months2023 Depreciation
of fixed assets
$1,155
$1,065
Amortization of intangible assets
250
231
Amortization of APS investments
355
299
Amortization of exploration data costs capitalized
111
108
$1,871
$1,703
11)
What Divisions comprise SLB’s Core
business and what were their revenue and pretax operating income
for the third quarter of 2024, the second quarter of 2024, and the
third 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 third quarter of 2024, second quarter of 2024, and the
third quarter of 2023 are calculated as follows:
(Stated in millions)
Three Months Ended Change
Sept. 30,2024 Jun. 30,2024 Sept. 30,2023
Sequential Year-on-year
Revenue
Reservoir Performance
$1,823
$1,819
$1,680
Well Construction
3,312
3,411
3,430
Production Systems
3,103
3,025
2,367
$8,238
$8,255
$7,477
-
10%
Pretax
Operating Income
Reservoir Performance
$367
$376
$344
Well Construction
714
742
759
Production Systems
519
473
319
$1,600
$1,591
$1,422
1%
12%
Pretax
Operating Margin
Reservoir Performance
20.1%
20.6%
20.5%
Well Construction
21.5%
21.7%
22.1%
Production Systems
16.7%
15.6%
13.5%
19.4%
19.3%
19.0%
16 bps 40 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, October 18, 2024. The call
is scheduled to begin at 9:30 a.m. U.S. 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 November 18, 2024, by dialing +1
(866) 207-1041 within North America, or +1 (402) 970-0847 outside
North America, and providing the access code 8893594. 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 November
18, 2024.
Forward-Looking Statements
This third-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; 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; 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
filed with the SEC a registration statement on Form S-4 on April
29, 2024 (as amended, the “Form S-4”) that includes 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”). The Form S-4 was
declared effective by the SEC on May 15, 2024. SLB and ChampionX
filed the definitive proxy statement/prospectus with the SEC on May
15, 2024
(https://www.sec.gov/Archives/edgar/data/87347/000119312524139403/d818663d424b3.htm),
and it was first mailed to ChampionX stockholders on or about May
15, 2024. 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. 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, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241016795721/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 – SVP of
Communications, SLB Moira Duff – Director of External
Communications, SLB Tel: +1 (713) 375-3407 Email: media@slb.com
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