Why did Schlumberger's gross profit margins fluctuate throughout 2023-2024?

Schlumberger's gross profit margins fluctuated throughout 2023-2024 due to a combination of factors:

1. **Segmental Performance**: The company's gross margins were influenced by the performance of its various segments. For instance, the Digital & Integration segment saw a substantial increase in margins, while the Well Construction and Latin American segments faced challenges.
2. **Market Conditions**: The oil and gas market is subject to volatility due to geopolitical events, economic uncertainties, and shifting demand patterns. In 2024, the market was influenced by factors such as weakened demand from China and oversupply, which affected pricing and margin levels.
3. **Strategic Initiatives**: Schlumberger's focus on energy transition, decarbonization, and technology innovation likely impacted its margins. The company's investments in digital solutions and sustainable energy areas may have affected short-term profitability but are crucial for long-term growth.
4. **Cost Optimization**: The company's efforts to optimize costs and improve operational efficiency likely had an impact on gross margins. For example, Schlumberger reported cost reductions despite a 20% decrease in annual capital expenditures over the past decade, which could have improved margins.

In summary, Schlumberger's gross profit margins fluctuated due to a combination of segmental performance, market conditions, strategic initiatives, and cost optimization efforts.