Can Schlumberger maintain its profitability trend beyond 2024?

**Schlumberger's ability to maintain profitability beyond 2024 appears challenging based on current trends and factors.** Here's an analysis to support this view:

1. **Recent Performance**: Schlumberger's net income for 2024 was $1.12 billion, with an operating margin of 15.06%. However, the net income growth rate was negative at -2.7%, and the operating margin growth rate was -0.97%. This indicates a decline in profitability compared to the previous year.

|code|Ticker|Name|Date|Operating Profit Margin|Net Income|market_code|
|---|---|---|---|---|---|---|
|SLB|SLB.N|Schlumberger|2024 Q1|14.620420351441368|1.098E9|169|
|SLB|SLB.N|Schlumberger|2024 Q2|14.619522582091223|1.145E9|169|
|SLB|SLB.N|Schlumberger|2024 Q3|14.886132197741158|1.218E9|169|
|SLB|SLB.N|Schlumberger|2024 Q4|15.062415608035492|1.118E9|169|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|SLB|SLB.N|Schlumberger|2024 Q1|16.3135593220339|1.098E9|169|
|SLB|SLB.N|Schlumberger|2024 Q2|9.36007640878701|1.145E9|169|
|SLB|SLB.N|Schlumberger|2024 Q3|7.21830985915493|1.218E9|169|
|SLB|SLB.N|Schlumberger|2024 Q4|-2.6979982593559617|1.118E9|169|

|code|Ticker|Name|Date|Operating Profit Margin|Operating Profit Margin YoY|market_code|
|---|---|---|---|---|---|---|
|SLB|SLB.N|Schlumberger|2024 Q1|14.620420351441368|5.803154199018177|169|
|SLB|SLB.N|Schlumberger|2024 Q2|14.619522582091223|1.5351491611467234|169|
|SLB|SLB.N|Schlumberger|2024 Q3|14.886132197741158|-0.21497448238193806|169|
|SLB|SLB.N|Schlumberger|2024 Q4|15.062415608035492|-0.9735831007428499|169|

2. **Market Conditions**: The oil and gas sector is influenced by global economic conditions, geopolitical tensions, and fluctuations in oil prices. These factors can impact Schlumberger's profitability as they do not entirely control the market conditions in which it operates.
3. **Analyst Expectations**: The average analyst price target for Schlumberger is $53.25, with a consensus rating of "Strong Buy". However, this does not guarantee that the company will maintain profitability or that its stock price will reach the target price.

4. **Strategic Initiatives**: Schlumberger has been diversifying into digital solutions and low-carbon markets, which could provide new revenue streams and support long-term growth. However, the success of these initiatives in maintaining profitability is yet to be seen.
5. **Financial Health**: Schlumberger has a history of financial stability, as evidenced by its adjusted EBITDA margin of 25.7% and free cash flow of $1.63 billion in Q4 2024. These are positive indicators, but they do not guarantee continued profitability.
6. **Challenges**: The company faces challenges such as moderate upstream investment growth, declines in Saudi Arabia and Mexico, and pricing pressure in North America. These factors could impact profitability if they persist or worsen.

In conclusion, while Schlumberger has a history of profitability and is taking steps to diversify and strengthen its financial position, the current trends and external factors suggest that maintaining profitability beyond 2024 may be challenging. The company's success in navigating these challenges and capitalizing on growth opportunities will be crucial in determining its future profitability.