Schlumberger Stock Surges on Q4 Earnings Beat, Dividend Hike

Schlumberger Limited (NYSE: SLB), the world's leading provider of technology and services to the oil and gas industry, reported strong fourth-quarter 2024 earnings, sending its stock higher. The company's revenue and earnings per share (EPS) both exceeded analyst expectations, driven by robust growth in its digital and integration segment. Schlumberger also announced a 3.6% increase in its quarterly dividend and initiated a $2.3 billion accelerated share repurchase program, further boosting investor confidence.



Schlumberger's revenue for the fourth quarter reached $9.28 billion, surpassing the estimated $9.18 billion, marking a 1% sequential and 3% year-over-year increase. Earnings per share (EPS) also impressed, with adjusted EPS of $0.92, exceeding estimates and reflecting a 3% sequential and 7% year-over-year increase. The company's adjusted EBITDA margin expanded by 33 basis points to 25.7%, highlighting improved profitability.



The company's digital and integration segment played a significant role in driving its overall performance. This segment reported a 10% year-over-year increase in revenue, reaching $1.156 billion. This growth was primarily driven by increased demand for digital products and artificial intelligence (AI)-driven solutions like the Lumi platform, which enhances real-time data integration for the energy value chain. The Lumi platform, launched in 2024, has been a key driver of growth in this segment, as it enables customers to optimize their operations and improve efficiency.

However, Schlumberger faced a 5% decline in revenue year-over-year in its Well Construction segment, primarily due to reduced drilling activity in regions like Mexico and Saudi Arabia. To address this challenge, the company can focus on diversifying geographical markets, innovating and differentiating its products and services, optimizing costs, and expanding its digital offerings.

Schlumberger's strong performance in the fourth quarter is a testament to its strategic focus on digital growth and energy transition efforts. The company's commitment to expanding EBITDA margins, generating strong cash flows, and increasing returns to shareholders is evident in its dividend hike and share repurchase program. As Schlumberger continues to navigate the evolving energy landscape, investors can expect the company to maintain its competitive position and deliver long-term value.