SLB Surpasses Cycle Highs as Diversified Portfolio Delivers Strong Q4 Earnings
Oilfield services giant SLB has kicked off the year on a high note, with its fourth quarter earnings call painting a picture of resilience and growth despite moderating upstream investment rates.
The company's CEO, Olivier Le Peuch, highlighted the strength of its diversified portfolio, which spans the upstream oil and gas life cycle, as it contributed to revenue growth in various regions. Notably, SLB achieved a new quarterly revenue high in the Middle East, with significant contributions from the UAE, Iraq, Kuwait, and Qatar.
The company also performed well in North America, benefiting from higher activity in U.S. land and increased digital sales in the U.S. Gulf of Mexico. Despite declines in Saudi Arabia and Mexico, SLB's fourth-quarter financial performance remained consistent and resilient.
SLB's international revenue reached a new cycle high in Q4 2024, while free cash flow stood at $1.63 billion for the quarter. The company also generated robust free cash flow of $4 billion for the full year, along with returning $3.3 billion to shareholders.
The core divisions within SLB demonstrated impressive growth, with Production Systems leading the way. This division grew by 24% and expanded margin by almost 300 bps for the full year, supported by double-digit revenue increases in surface systems completions and artificial lift.
Reservoir Performance also continued its momentum, growing by 9% year-on-year and expanding margin by approximately 100 bps with strong stimulation and intervention activity. Well construction revenue remained flat, but it continues to lead margins in the core division.
SLB's technology leadership, domain expertise, and scale have enabled the company to innovate tailored solutions for its customers across various regions. The company is proud to share that its fleet per base in revenue crossed $1 billion for the first time in 2024.
The demand for digital products and services has accelerated, with SLB forging strategic partnerships with industry leaders like NVIDIA, Amazon Web Services, and Paravalto networks. Digital revenue grew 20% for the full year, exceeding SLB's targets of high-teens growth.
SLB continues to increase its exposure beyond oil and gas, leveraging its diversified portfolio to deliver strong financial results in 2025 and beyond.
