Schlumberger's Q4 Earnings Surge: A Dividend Boost for Investors

Schlumberger Limited, the world's largest oilfield services provider, has reported a strong fourth quarter of 2024, with adjusted earnings and revenue rising above expectations. The company's robust performance has led to a 3.6% increase in its quarterly dividend, further enhancing its appeal to income-oriented investors.



Schlumberger's Q4 Results in a Nutshell
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Schlumberger's adjusted earnings per share (EPS) grew by 7% year-over-year (YoY) to 92 cents, surpassing the consensus estimate of 90 cents. Revenue for the quarter increased by 3% YoY to $9.28 billion, beating the consensus estimate of $9.18 billion. The company's adjusted EBITDA margin expanded by 33 basis points (bps) to 25.7%, reflecting improved operational efficiency.



Key Drivers of Schlumberger's Growth
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Several factors contributed to Schlumberger's strong Q4 performance:

1. North America Revenue Growth: North America revenue rose by 7% YoY, driven by increased offshore activity in the U.S. Gulf of Mexico and higher Asset Performance Solutions revenue in Canada. This growth offset the impact of lower drilling activity in U.S. land.
2. International Revenue Improvement: International revenue improved by 3% YoY, indicating a broad-based recovery in global energy markets.
3. Production Systems Segment Performance: The Production Systems segment saw a 9% YoY increase in revenue, driven by higher demand for artificial lift production equipment and optimization services, as well as increased sales of packers, safety valves, and sand control technology.
4. Digital & Integration Segment Growth: The Digital & Integration segment reported a 10% YoY increase in revenue, reflecting the growing demand for Schlumberger's digital solutions and integrated services, such as AI-powered technologies and data analytics.

Schlumberger's Dividend Increase: A Win for Income Investors
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Schlumberger declared a quarterly cash dividend increase of 3.6% to $0.285 per share, payable on April 3, 2025, to stockholders of record on February 5, 2025. This increase demonstrates the company's commitment to returning value to shareholders and its confidence in its financial performance. The new dividend yield is approximately 2.49%, which is still attractive compared to the average dividend yield of the S&P 500 index.



Schlumberger's dividend increase, coupled with its strong Q4 performance, highlights the company's resilience and adaptability in the face of changing market conditions. The company's ability to maintain profitability and return capital to shareholders is a testament to its strong fundamentals and growth prospects.

In conclusion, Schlumberger's Q4 earnings and revenue growth, driven by several key factors, has led to a 3.6% increase in its quarterly dividend. This dividend boost, combined with the company's strong fundamentals and growth prospects, makes Schlumberger an attractive investment option for income-oriented investors seeking a stable and growing income stream.