How effective was Schlumberger's cost management in Q2 2024?

Schlumberger's cost management in Q2 2024 was effective as evidenced by the company's financial performance and strategic initiatives:

1. **Revenue Growth and Profitability**: Schlumberger reported a 13% year-over-year revenue increase to $8.707 billion in Q1 2024, surpassing the estimated $8.693 billion. The company's income before taxes stood at $1.357 billion, with a pretax margin of 15.6%. This indicates a strong revenue growth and profitability, which is a result of effective cost management.
2. **EBITDA and Margin Expansion**: Schlumberger achieved $2.057 billion in Adjusted EBITDA, up 15% from the previous year, indicating continued operational efficiency and profitability. The company's pretax segment operating margin expanded by 95 bps to 18.9%, which suggests that Schlumberger was able to manage its costs effectively to enhance profitability.
3. **International Revenue Growth**: Schlumberger's international revenue grew by 18% to $7.056 billion, offsetting a 6% decline in North America to $1.598 billion. This diversification in revenue streams and the focus on international markets can be attributed to effective cost management strategies that prioritize high-margin operations.
4. **Strategic Investments and Acquisitions**: Schlumberger's acquisition of the Aker subsea business and strategic investments in areas like digital solutions and carbon capture reflect a well-thought-out approach to managing costs and enhancing operational efficiency. These strategic moves have likely contributed to the company's ability to maintain profitability and cash flow despite challenging market conditions.
5. **Dividend and Shareholder Returns**: Schlumberger's commitment to returning $7 billion to shareholders over 2024-2025 reflects confidence in its financial health and a shareholder-friendly capital allocation policy. This commitment to returning value to shareholders is a result of effective cost management that allows the company to generate surplus cash after investing in growth opportunities.

In conclusion, Schlumberger's cost management in Q2 2024 was effective, as evidenced by the company's strong revenue growth, profitability, and strategic investments that have enhanced operational efficiency and cash flow. The company's focus on international markets, strategic acquisitions, and commitment to shareholder returns further underscore the effectiveness of its cost management strategies.