SLB Pumps Up Profits and Dividends on International Drilling Boom.
Oilfield services giant Schlumberger (SLB) enjoyed robust growth and rewarded shareholders with a higher dividend after exceeding analyst expectations for its fourth-quarter earnings.
Here are the key takeaways:
- Strong Profits: EPS excluding charges and credits soared 21% year-on-year to $0.86, surpassing analyst estimates of $0.84.
- Revenue Surge: Quarterly revenue climbed 14% year-on-year to $8.99 billion, exceeding expectations.
- International Growth Engine: International revenue growth (18%) outpaced North America, which remained relatively flat.
- Middle East Momentum: SLB achieved record revenue in the Middle East, driven by impressive growth in key markets like Saudi Arabia, UAE, and Egypt.
- North America Performance: Despite moderation in the second half, North American revenue still grew 12% year-on-year, exceeding the rig count.
- Optimistic Outlook:Â CEO Olivier Le Peuch sees international production playing a vital role in meeting energy demand throughout the decade.
- Middle East Boom: Record investment levels are expected in the Middle East, particularly in Saudi Arabia, UAE, Iraq, and Kuwait.
- Geopolitical Resilience: Le Peuch expects long-cycle investments in key regions to be largely insulated from short-term commodity price fluctuations, despite geopolitical tensions.
- Dividend Boost:Â The company rewarded shareholders with a 10% increase in the quarterly dividend to $0.275 per share.
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Overall, this report portrays a thriving SLB driven by international expansion and a focus on long-term strategic investments. The company’s optimism about future growth and resilience to geopolitical uncertainties bodes well for its continued success.
