SLB - Earnings call transcript Q4 2024

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Operator

Good morning. My name is Kate and I will be your conference operator today and would like to welcome everyone to the fourth quarter SLB earnings call. [Operator Instructions] As a reminder, this call is being recorded. I will now turn the call over to James R. McDonald, Senior Vice President of Investor Relations and Industry Affairs. ahead. go Please

James McDonald

held Good and Kate. call to SLB Board the being Thank Year morning XXXX Quarter meeting our following Full from Today's this Earnings Fourth week. hosted you, Houston, and earlier Conference is Call.

are on Chief Officer. Executive Le us Stephane Joining Olivier Chief and Biguet, Peuch, call the Financial Officer;

our the These I be cause making will begin, remind to matters we that we risks results like Before uncertainties all participants from in are forward-looking. materially statements to would that involve and some those of statements. these differ today could projected

For XX-K can more SEC information, be please and which refer to our filings, website. filing latest found our on other

today Our include measures. financial also comments non-GAAP

quarter is Additional the financial directly details can GAAP on reconciliation earnings comparable most to press release, full our and year our website. which be and fourth measures found in

with filed have SEC's statement prospectus. conjunction on be and in the materials the found with our These proxy proposed SOB registration parties' SEC, website. statement or and from including can with acquisition, ChampionX Finally, materials website the the

will turn Olivier. to the over call I that, With

Olivier Le Peuch

provide in the diverse first we details quarter results year you Then outlook you, call. our for our joining and full Ladies and and beyond. then is questions. and line uniquely portfolio will SLB's quarter our to the for finally, positioned delivering will on our And performance, provide gentlemen, full for James. activity financial update an discussing XXXX evolving year. Stephane describe financial continue strong morning, the macro open thank I by environment and more will I us This on will will Thank I on early begin fourth the results. and the

year-on-year growing sequentially with cycle the and solid concluded free and cash We revenue flow, maintaining earnings margins. high begin. our year both and Let's

during U.S. the Notably, once differentiated with offerings. from gas And upstream the of continued Middle portfolio a to North we broad our have a the East, higher investment Despite financial $X.XX cycle generated new along where of higher with Iraq, resilient. exposure portfolio. from revenue quarter Saudi digital rate in and we benefited from very also we demonstrates moderate and well-known high, high activity the our diversity Arabia U.S. with we quarter Kuwait in life Qatar. quarter, growth in well contribution UAE, the oil SLB and achieved global to the our we diversified cycle and markets, quarterly year the again, sales Mexico, upstream This America the strength saw strong declines closed benefited the performed the land, of in SLB in reaching digital performance our in revenue strong cash new Overall, from growth Although across and the free Mexico. flow fourth consistent of remains a and fourth quarter. international of for billion Gulf

previous Reservoir to XX% year. complemented by Turning by billion achieved in EBITDA the we year to compared year-on-year growing its margin free increases and $X.X subsea to momentum, growing now surface revenue Performance us lead and it expertise Overall, systems by full although for by our led across supported billion for by I'm Production revenue region. continued to core year. for by And lift, in our activity. are double-digit tailored artificial every flat core was to that the divisions, leadership, $X continue strong was XXX This with returned in X% to cash And and Across division also performance domain continues innovating digital divisions, our technology proud our the almost bps the margin and shareholders. time strategic was continue crossed accelerate enabling of in grew customers to bps products core. adjusted base robust XXX leading intervention revenue billion margins full XX%, networks. completions of margin flow in expanding demand construction, year-on-year, full way, the stimulation organic solutions partnerships generated for year. and Services exciting expanding the the X% per We leaders, approximately by X% the acquisition. Systems growth the first and and and for NVIDIA, well as year reform scale fleet in to share for also Paravalto with and XXXX. our including services Amazon that $X industry a This very target Web was

to digital customers revenue this year. operations shorten cloud and for computing, growing cycle continue the improve AI to of of efficiencies. high-teens exceeding and the targets growth. XX% our power times digital operating And Our embrace to led full

solutions, minerals. Finally, portfolio exposure growth oil And beyond gas. strong these capture and exceeded significantly and significant we this our data that There we increase is critical sequestration, continue of infrastructure deliver to exposure technologies carbon responding XXXX. in through our Combined, growing and are activities XXXX of markets demands evolving and the from for center low in have solutions revenue momentum million to rapidly carbon we in geothermal to to the position landscape. comparable to increase digital a $XXX meet a for operators expect where a we

range pursuing customer successes for to mix on team's year and proud. delivering our SLB of I'm diverse look positioning should to from impressed customer We opportunities in As performance ahead. gas, a very progress. to team and centricity and all by this the and you spirit be to and I mindset are benefit innovative building the oil spend. our thank us of very forward within a can want is and see, new this we beyond wide existing

macro the let evolving Next, environment. discuss me

more approach oversupplied driven back of XXXX, half oil near-term discussion activity an with customer a adopted and cautious the market. by On to primarily concerns of spending,

and investment the oil rest demand centers the gas the concerns these imbalance and for with whole data AI industry on anticipate support coupled abate. gradually decade. economic throughout from growth focus the of Although a we supply and security, Global we persist, will heightened energy rising outlook

Looking resilient the the by focus in to resource U.S., balance, countries be throughout investment to at any the supply, this commodity will absent operators oil In be capital environment, upstream ongoing supply across will current market that further the and offset of discipline focus steady the Overall, OPEC+ with upstream keeping plays price customers. to by on growth in near-term limit global compared investment XXXX. seems geopolitical in global of select expect deceleration maintain level the we region. And in expect global its the disruptions. XXXX we being a growth in stability some on XXXX

more on our activity will countries this be outlook. a to growth, bit spending Let markets, while others. In XXXX will continue international by provide in detail me reducing now strong certain expand balanced

East by Kazakhstan will the and by and Scandinavia in Saudi be In lines spending growth Arabia, Guyana. Egypt and in the growth will Azerbaijan America, more and Asia, North and Argentina increases and in Australia. Nigeria, Mexico instance, Emirates, than be tempered offset Iraq, United China in decreased Brazil offset Kuwait, India will Europe For and Middle Latin in and Africa. in Africa, declines And in by Africa, be the West in

higher to resolved. America. North expansions gas slow to in a until lower and drilling recovery gas land, activity Turning efficiency in due U.S. are Oil publicly decline and expected LNG announced CapEx to is capacity

and core this Central Sea, expect the supporting region, [indiscernible] XXXX Specific center data offshore Australia growth revenue and in deepwater North in our to in growing markets, white muted activity, environment Angola attributed is rapidly our business. particularly of in East Solutions to a outside However, the we space in Africa.

progresses in ahead, Looking machines. anticipate number to this we as of for the preparation across the significant space FIDs up in XXXX ramping several deepwater deepwater white start in year improving

oil or lift, will driven supported production expect ChampionX, in geographies commercial outlook for be mix performance will the full decline the at with expect be growth as system and growth with solutions. activity Digital above to construction regions. in the across in levels. result Digital and expect translate will revenue to core, Production artificial flat digital Let in to operation be and revenue revenue [indiscernible] we to we growth momentum being reservoir steady both the growth me its XXXX growth year-on-year valve due while and by of over the high dollars decline strong integration, now systems, supported EBITDA digital we intervention midstream by described of and in unfold describe AI remain production activity Systems, when and steady offsetting by a teens, the impact how and this modest divestiture. with division offset into by will our completions adjusted Overall, will just XXXX. excluding being margins in performance, maintain the revenue EPS very divisions. a data in across in This In year-over-year Meanwhile, year markets. dynamics international

to quarter. turning Now the first

to full EBITDA as be adjusted second an similar last our year, This activity international be followed year and guidance. by markets. in revenue quarter, will at in the rebound levels in particularly expect line We with

the Finally, positioned that let I is market I navigate discuss me evolving SLB to discussed. why the company dynamics believe just best

market XXXX beyond, advantage integration are and digital Looking at differentiators. in the evolution of size leadership, capabilities the performance SLB and

and and low line situation. to enabling and exposure across bring regional us and short to navigate operating diversity global cycle combined our projects Our business market resilience,

producing to and across an data with as our efficiency rate performance assets. example, this and customers their of is growing embrace For business accretive edited at part margins AI workflows digital the and drive

oil are be producing becoming and customers in backdrop. allowing from contribution this against in and integration industry business beyond our enhanced infrastructure, are capabilities and part customers upstream NOCs, further sector. maximize pathways low-carbon engagement we as the assets, shaping production digital our resiliency will growth recovery us Furthermore, And XXXX decovered gas a their the new larger to Our from further as success and beyond in and developing our of with by to the illustrated markets diversity ChampionX. work add is fast-growing across

a cost business a can see, ability we're a margin with us as you digital focused just flows provide strong continue to organization, The will this increased remain combination to delivering and in from expansion operating journey. on support our efficient -- combine strong we And return performance confidence optimization strengths with become our described, of transformation cash I've along position. very process shareholders. and continued to enhancements, leveraging more As

dividend the and You action to already share release have we have accurate repurchase increased earnings start we our taken year. today the our as in seen

will discuss details. in turn to I financial our to the this Stephane and announcement now call results more over

Stephane Biguet

of more the by Middle international accounting driven X%, billion an Olivier, markets. with fourth I a providing the will year East, reach grew good and the second into well-publicized basis of getting the points morning, margins our the full X/X gentlemen. operating start year top half and performance. Full XX.X%, international the revenue of quarter you, units Thank year XXXX In by overview Aker of experiencing growth specifics both previous line XXXX compared our and XX the XX% $XX.X With of Full entirely was margin X% group. our ladies revenue year-on-year year. Organic by before year. which for headwinds results half year-on-year declined business America, geo expansion acquired segment the North to in high, to This grew record the year-on-year. improved of Subsea revenue of grew than pretax led despite XX% International year-on-year.

points business. to basis, from grew XX% digital digital integration, pretax However, mostly was standpoint, division our and dropped and year revenue by Edge billion grew cloud, basis full supported led technology. $X.XX technology higher by year-on-year, a XX% by efficiencies a offset margins and mix, with growth year-on-year, favorable cost From entirely by which AI digital operating a only growth close pricing segment On by organic digital pressure of revenues. XX% XX XX% of driven

both business margins. and overall Our to global SLBs revenue digital accretive was its growth

adjusted Finally, points increased levels by since EBITDA our highest full reaching year margin basis XX of the XXXX. year-on-year,

fourth $X.X of driven of quarter the points with the billion reached the From by as sequentially on share, ChampionX sequential investments Subsea of perspective, same unconventional quarter charges credits, and per sequentially, certain record digital way, of an to $X.XX and revenue. period represents the by included Fourth basis Middle $X.XX equity compared quarter Adjusted the rates fourth with higher earnings margin relating charges equity performance strong fixed cycle the for $X.XX sale program, transactions, in $X.XX high Fourth to high investment. $X.XX the merger quarter. cost-out when the results. of revenue Aker It led assets. This gas the charges in and and start-up than Arab X% East of period in relating revenue our We recorded of is of a $X.XX to year. XX geographical XX.X%. impairments X% a quarter increase Turning a last driven excluding was connection and increased gain ongoing of well $X.XX. United fourth EBITDA integration to $X.XX an This Egypt activities same the last net during as and year. Qatar. and growth, of

to Let margins and integration for of XX while XXX lift, Subsea of declined as the results Well decreased fourth lift by margins and XX division. activity sequentially finally, XX.X% Mexico sequentially, X% due in Pretax on revenue activity. Pretax Production higher midstream points, $X.X billion offset flat. increased construction basis in production by X% $X.X profitability and basis Reservoir to production decreased intervention and and revenue simulation of profitability basis revenue partially X% and of $X.X in billion, lower XX.X% quarter points reduced Saudi higher Margins operating drilling [indiscernible] result essentially and improved contracted Systems was midstream international points $X.X improved digital, of lower due sales basis me quarter through X% to sequentially, XX services. now go increased cost artificial digital to evaluation digital Arabia. growth Fourth margin in increased completions. systems. XX% to systems artificial driven a expanded profitability of to in revenue efficiencies. sequentially And billion sales on Performance billion XX.X% due primarily operating points ATS revenue

billion cash We during $X.X operations billion. performance cash flow the free of resulted in quarter. liquidity. our flow from and fourth free to turning flow of strong $X.X billion year full This of Now generated $X cash

and billion we year. represents for our ]. first during XXXX. $XXX net were of result, a data million million CapEx [ fourth investments, and [ quarter Capital As debt the ] reduced $X.X projects the APS our level by million net in full since quarter $X.X lowest including $X.X This the quarter in debt to investments exploration the and

Looking ahead, of $X.X the CapEx revenue. excluding previously with be investments, expect investments. it we portion our as low of at disciplined will of capital to the our to X% shared continue of capital billion, approximately we relates In XXXX, to to to end guidance reduce the impact ChampionX X%

During the purchase quarter, repurchased common total shares we of fourth million stock of million. for our price XX.X a $XXX

we into our that in repurchase company's stock. we our accelerated not When the dividends increasing are shareholders on shareholders a committed returned to repurchases. billion this increased form confidence our to of and today XXXX. $X.X repurchasing morning, returns $X belief strength of in to announced full visibility our a With share we shares pending transactions repurchases, to Furthermore, was only shareholders in the XXXX, stock discipline business. the the strong For connection of common total stock dividend generation combining as once the year. this our Notably, issued billion of These increased are will return that we saw reflect again to quarterly year, earnings will our but focus transaction. minimum to our capital repurchase you is billion cash in performance, entered our of of transactions announcement be share in in the and with flow also financial accelerate continued into with our to this $X.X targeting ChampionX relative that continued clear undervalued

And As the ChampionX, authorities progressing the received in CFU's engagement it regulatory well. transaction is clearance relates to other December. with

transaction, divestiture the next Canada project work of over we to continue Palliser of expect first to With the transaction the in We our our before the to toward in few end close in the the FPS quarter. months. respect interest closing pending

back conference to call the turn now Olivier. will I

Olivier Le Peuch

Thank Stephane. you,

Okay, floor ready to we to . the the open believe are I questions.

Operator

question from first Your the Anderson Instructions] Dave Barclays. [Operator line comes of with

John Anderson

you upside In of of flat about of have exposure, in your upstream the highlighting. kind outlook X in have the and a a takes Schlumberger's if outlook the could international you puts sort talking potential bit X kind -- better could little for are get in where But overall. upside wondering international terms countries lot was or your X sort from you were are and or a areas of outlook, the the I that simplify outlook the downside the maybe that to in where or most of the X potentially of your of kind the Like where outlook? of worse? are for kind regions is and get regions scenarios spending

Olivier Le Peuch

Yes.

being either still a East Middle it Middle comes impacted countries region large all future, ongoing in to gas multiple I capacity in and such at as the think gas, East XXXX start is spot will Saudi to by or XX% customers the gas commercial production. as commitments, know the their a commercial at expand will when Kuwait to sequentially very across and from of The for into with theme multiple the of oil becoming I XXXX activity gas Iraq bright is that decline and commitment having activity capacity large. gas and UA, result expansion

oversupply I combination and short come at last long-cycle the bit will short project resulting commercial capacity to again, this all oil of that abated and and time gas all as believe commitment And So be long-term and are our is of the and that -- result months the opinion, very a these resident, decline the as seeing all in budget in activity this -- Egypt growth to a was as few cycle in resulting the offsetting if back over resilient cylinders. in lesser and in cycle a running more with, suppressed a the extent, is still Middle to globally is region that the partner East not offsetting growth. we in long-term resilient are Saudi

will and believe us. be for spot. is to an Middle certainly advantage a There international East first I basin market. bright continue So

Secondly, resulting the picked in on panning and of still you Indonesia, for and XXXX in conditions in Southeast are has this will I appraisal where rigs up. despite deepwater the having exploration up active XXXX certain the be and parts lot of quite coming coming believe first could than FIDs FID. been have partially is into globe white basin Namibia the into space the rests later a quarters, commentary the to creating anticipated are a put and anticipation Suriname, new place. certain in aware activity return lower months that of this basins, and in are to the the China and that other fully in the the 'XX, result very been that in of

I'm by this optimistic international. by and a in long to Asia maybe is I across the from in market regional still due will this is about So very term I despite activity. due international gas, investments will commercial to this the East conclude to Middle gap still security international and constructive But market. the look yes, would drive demand indicated at year long-term activity deepwater what recommend still the gas

John Anderson

can the portfolio your kind ChampionX in shift area going This mix. on a of bit side we're focus becoming in the the where And is as production Aker little of added as the of in pulling perhaps you business. an is forward. bigger and we part a

year-on-year was Aker overall kind of highlighted production kind You X% of pro about and excluding systems. forma growth,

it you be like be to us to next here when Looking have of that -- digit, driven of go in? X% low -- from business. business as go you part Because forward? kind I going of Where trajectory help of you a seems production that how overall kind viewing forward, your Do that? showing mean, few enough of high fear of this you starting kind the does could the digit are everything much point? fold the a years. of Is Should the sort be high see over kind understand do to visibility double single that growth

Olivier Le Peuch

Yes.

our I recovery. driven will think production be seen having commentary, this positive as in system have by you growth production

pulled seeing this intervention by year and that performance is recovery stimulation reservoir are production We activity.

this stay. we across to investment our integration portfolio, into visible this. are the in things the is technology, resulting The credit are investment water are year in space here these making pool into we making this we're growth making basin investment the So in opportunity East, Middle in the

long positive relative earnings It's cycle of backlog become us that mix our will we become CapEx. potential So will to very long-term driven and albeit it term. long a this OpEx a part a in more related are to more significant for the

that feed deepwater increase about Middle So U.S. ultimately we facing challenge, very of technology recovery. factor basins it's of recovery the a and production most say, is This long-term and recovery of -- the East shale constructive assets the of and from the is are future and improve demonstrate basin ground production integration can I digital that the industry the uplift existing to would to can the true producing basin. to

that XXXX the And to think across are in technology, across in starting to are portfolio and we and system see production will something year, and continue into from from is performance this so growth this I digital the investing we something forward. strategically as this development see production that's expect we from outpace where and indeed, the going recovery the exploration reservoir benefit

Operator

Your next with comes Scott line of from Citi. the question Gruber

Scott Gruber

the in a for kind XQ the normal or and market. Dave's second going Do how expect you I you around half half sequential Good of higher to bit weighted? see just the of a on of outlook revenues. improvement more do a the of international weighted following on normal progressing, the it be question little activities guess bit from is shape second color year just year kind the little or

Olivier Le Peuch

the in in But think strong and in I low that pattern from it's foresee with fair plays materialize of international seasonal from sequential HX HX resource resulting typical quarter, some in and from that in the recall we including that it's in some followed in we followed think of activity following decline the had effect year, higher half we some rebound I and upside and QX have have the second also pattern higher, an say, part the first revenue. low that by would I quarter, yes, I the -- an could highs a you a resulting to will the No, may as seen the deepwater. have by a upside fourth activity extent, see assume we late to higher

Scott Gruber

comment Got continuity your Russia sanctions there? to And are able a at kind update you the to remind it. the I and us And of on you operations digest to juncture a overall think Have you business. of language? with this had contribution maybe chance the to

Olivier Le Peuch

Yes.

Let on comment me this.

all of protein, from including reviewing activity, SMB the our Our revenue in this in worldwide Russia taken X% shipments you measures Russia Russia point, know, continues conflict, as to decline and in technology accounted the believe curtail for of And our X% these year. XXXX. we down XXXX, have we sanctions. And are volatile voluntary since that with of previous aligned start our And we global from at revenue and are measure the product U.S. facilities actually, new hating a into sanctions. in to

Operator

comes question Arun line of JPMorgan. from next Your with the Jayaram

Arun Jayaram

if see and provide Olivier, little just a Is make that expect clarity a for I outlook fair on Is that to above XXXX basis have stand-alone could that I levels? flattish want revenue EBITDA at the wanted maybe updated around you adjusted or to you I XXXX. it sure bit correct? of

Olivier Le Peuch

Yes.

the earnings will into outlook flat and excluding into or also result of will mix ability this, takes and this XX contrasted to captured excluding remarks are of dollar the give correctly that activity, and also to result disclosed the and we revenue is this U.S., EBITDA globally think, prepared all in ChampionX. year ], foresee indeed. both -- our prepared We be they I at [ what mix international deliver above our that you of a

Arun Jayaram

And it. Got it. Got could you maybe Okay. elaborate. just

maybe some in in a you Can thoughts, seeing, minerals of What -- level? how significant $XXX off provide and solutions, of of mentioned number what growth could you bit you that we that some non-oil see could your I million capture a just kind carbon XXXX. cited little low carbon be segments, center for growth are You solutions gas data you're XXXX. think

Stephane Biguet

take Stephane. I'll it's this. Arun,

unwrap capture that -- more in million it new and have as XXXX, and So activities, data geothermal infrastructure relate started activities, of carbon is as started sequestration have example, -- $XXX for yes, just bit center to which little low to a solutions. of made carbon we to we the than well

more core well. of activities are So our digital than altogether, was business, in clarify, these XXXX, carbon [indiscernible]. part We recorded such [indiscernible] of services characterization, as solutions. reservoir just to provide or And as sequestration, this even some drilling

venture, captured some in is captured our of the or the some digital divisional capturing capture, divisions carbon in So it as like category our such other and relevant core of activities, the joint reporting. is under other in

So clarify. just to is this

than this Now forward, is business. faster going growing very core fast, our

center infrastructure side, I some core is geothermal those to on offset and solutions of this on CCS So the is mentioned. another data providing headwinds way the the business and particularly the on growing

Operator

Goldman comes from the Your line Mehta Sachs. Neil question next of with

Neil Mehta

the I repurchase just about program. wanted talk share to

you free stock? You do flow you of And the indicated of to about some taking at capturing authorization least that how the billion the so, wanted think advantage extent cash the do you upside volatility how the and accelerate think $X to about said or you materialize? in

Stephane Biguet

Neil. Sure,

mentioned first, So you it.

of especially accelerated here as -- the our with as take that believe we for stock Our is action goal what low year. a to the start we advantage is especially valuation we

the and program. is XX we exactly stock, on week, upfront received of billion be the of we total to $X.X us are approximately actually to with that bought we XX, about and shares earlier January XX% what bank, helping did shares this delivery paid So which billion of We this our million $X.X program. paid represents mechanically, the this under

were now share count. shares delivered was million XX shares those removed So from outstanding us are our to and

will the end volume receive remaining will there next the then true-up few price minus is banks deadline a Now shares in the of we the of go the be their May, at a will There pace, on discount. the end a but And May. average shares. true-up before the based months be weighted of

removed right of be To $X.X share second of returns away price. take question, to to count all the very at believe with part what of billion of and what billion can shareholders. this, we is billion your the from a $X is favorable that total So $X.X our the majority outstanding in there's I that care shares include

option mentioned is if have -- in it a So we of billion increase indeed do the we billion, -- to increase this form $X be the we minimum. additional will We only buybacks. will $X this

the of -- you go -- high-level just a above will -- can we the we estimate we So $X.X total year. bit for will the a billion go this was because

will example, to So returns. go depending businesses, the go we exceed $X as the ChampionX clearly year how there the beyond for slightly year unfolds, much shareholders. and cash above, we decide option this returns closes, free to on that flow in and the opportunities. can we once as potential is will We'll to cash but total our to transaction on billion -- depending the free total increase performance contribute $X that flow the billion M&A But even

Neil Mehta

can was digital post helping the And where about of then resegmenting. ChampionX, I very there know of better segment we market the important it. isolate And business Canada That's value in an follow-up be could is helpful. you talk some just then the just piece Okay. stand the maybe

get about it a think clarity So billion basis? and that multiyear we bit stand-alone do just can about we more on the outlook number for little how $X when a

Olivier Le Peuch

offering the we digital business to dynamics the are the across continue still are witnessing have and that will our I are elements different confident decade. the across Yes, very our in we leveraging rest Neil, grow of think that we

accretive we'll position, that understand further have best being the to And and we'll you so in the continue will, of digitalization have, disclosure to workflow platform decide we we XXXX to understand we coming from beyond will we and we digital that disclosure this be in upstream the all that the time, highlight actual to for advantage performance continue and AI years built taken, combination ambition forward. of market project approach of and leadership in above have accretive. and set -- and the to margin. We spend and and move the position the of appropriate is quarters, or have first a rest the be give be the decade will us And and the way come. going in believe of clearly the across the can everybody we and months contribute had provide our the as due market how cloud growth beyond -- tailwinds this said, making yes, accretive, will

trajectory, the see position everybody and we advantaged performance underlying detail capital. the give performance that this very that -- actual and disclosure but as only have. also so for margins So not trend will understand of making we the enough a that

Operator

next the Pant question comes Your from line Bank Saurabh America. with of of

Saurabh Pant

you mind, you a maybe if clarification. start I'll mind to with with don't clarification Arun's -- I don't clarification If start a --

include XXXX the clarification. a that because yet. So it's closed double sale does in the not guide, Canada, right, But still asset Palliser has that

Stephane Biguet

yes, So not has transaction closed. that

potentially months in still -- we yes, this but close need need divestiture the weeks, of the still or few we after includes the to few Canada So guide transaction. still the the

Saurabh Pant

Right, I was got That's what right, right. guessing. I that. No,

to said, the have in a you cycle. bit deployment capacity going a be worried And is Should mean 'XX pricing? on and like your soften where all But know little pricing, disciplined deployment And about are terms But to outlook is and that investors I across are of you We does 'XX? as Okay. we pockets up, then industry, delivery in are pricing is markets any or Perfect. through down. Olivier, likely the touch CapEx there your as the go result, about that? flattish. peers what portfolio, going want some for some

Olivier Le Peuch

internationally high terms I remains capacity. market in stretched being a in The of international activity at the think cycle remain being market believe I discipline. capital that

and You support here have resilient. combination a will pricing be to

our it's technology obviously, that Now trend and support the capability integration at and And of that seeing I have pricing market a we not ability is pricing considering market. high performance I trust are necessarily and forward. inflecting, defend us this. I that competitive is to But activity the think still giving internationally. going think the I benefit the are

constructive I'm this. on So

Saurabh Pant

is something that the to Olivier you look structure a some and opportunity there that that structure, so if quickly. if your have cost for of year I'm a the industry, bit? your cost And sneak the out, talk said, to this And right? self-help maybe it cost you and like the it equation, is over or the be to one back including in you side next good taking Like margins if about Fantastic. at SLB cycle can of out opportunity Okay. more comes can right? should can assess seems go I little help maturing, the So very thinking

Stephane Biguet

take this, Saurabh. I'll So

super resources in you and which last progressed of have operational we both we the year, adjustment the optimization the executing first, certain our as cover initiated So of program remember, structure. well may quite mid in geographies

our it's margins action way, the digital compared So of fourth reaching last same XX% year. set year. period margin almost see And in of with quarter in in that expansion previous particularly is you our QX supported the can the and and by third complete, what D&I first to in the XX% that, of

will actions benchmarks first specific will, continuously resources both versus our set those we course, to versus support out the well the for that we margins continue course, going those set levels as the action as program, So activity of and support of beyond operational ourselves. forward. resources efficiency cost are, monitoring of

cetera, our into really digital of with or parts additional functional efficiencies protect So our still as have certain levers yes, is this may in have extract. office, -- et certain necessary the This organization. of we adjustments key we result improve digital margins tools back and to the in additional to one

Operator

Roger question with next Read comes the Fargo. Wells from of Your line

Roger Read

I'd in know digital to and forward of the or are accelerated limitation the to a from the But some just on we willing focus the just business glad a answered curious, quarter highlighted overall move quarter. spend that the repos. is contracts see I to should or I'm terms digital of on the questions that function of there affecting Is share at spend exists Is it people look one here on hesitacy a it. be What little on things the side. resources, dig internal growth But the of maybe to hesitancy fourth what any already opportunities, what here, extent you've capital? customers? few like the on deeper Congrats you into right? during a You they're series collaborations on side? growth to here as

Olivier Le Peuch

products success we one the we Well, ability digital that growth provide form one And in here, value as help adoption way extract we I their growth are customers a that services think production, seen demonstrates help let our and to way solutions extract we to me vector first, hence, unit customer operation we steering And digital. in the value first and then selling that to the press and that it service that and trading describe selling, way such into the they is and buckets: the the and customer and we sell you to the value have autonomous it the a to see operate. product from think and efficiency to release a time new statement think in our I and/or of to our operation. come to automate and I and in one will customers. comes drink of are pathways X one The a the will the summarize the I have time, or show at come at provide solution of producing may assets form of the in operate transform it clarify train

is and is every it first is the every years, have operations, and depends on in expect and digital siloing do But The when the every We to I we only limit operation untangle for in I So committing the the the large. rate have fastest-growing for happening connected think work real every segment value is that's value extracted. the the is and adoption demonstrate that be infrastructure connect to rig, connect bucket to and at spend. it for seen we a and happening. of well and discretionary and and this This success want to we this and is last we completely we This think producing scale. couple at assets. this recognize the the the digital this to CapEx OpEx asset pad is spend lot customers ability can the from to decoupled are be supplemental do customers for the to this, of that a

cloud the is transition. bucket Second

long on is our our the you create new during one and depends offer to customer transition have this cloud may creating This of one on a the to hybrid of this customer term on-prem initiated industry-leading have to months at again, seen time. coming the by unique customers. get the a of and at It scale, the We adoption. support keep cloud. platform, the We few adoption. cloud balance platform the that is benefits -- allows having fee And customer quarter, and transition. customer last a adoption workflows we And computing tail cloud

have digital our We portfolio. customers in X,XXX

do there and expect scale, they for we realizing both domain engineered and and exploration use to clouds in And with the are assets, and see our transition, platform that And that's We that time again, complex that and years our have AI to to -- are the have this. the capability And we transition as of transition. to X,XXX over look but we to assets every very want and have come continue unstructured SaaS on capability capability we rich own efficiency this And this. do to get to want extract customers to data, and desktop benefit a on-prem adoption an their will to signed from workflow seeing AI of we platform, platform connecting total market data domain a their also been platform cloud, to and we uplift creating a into customer finally, that's and to tick-up customer that into and our and XXX customers. to from that and AI the cloud the that into openly care is offer new unlocking called a the offer a of an only power we unlock connecting this [indiscernible] them another will can that production. and of unique, revenue. transition own exploration on-prem continue Lumi from -- data a into by new And access

digital and combination see. from all a us AI independent of transition, and we decoupled the as you that give cloud here, and are growth OpEx and paths operation, better spend So have CapEx that multiple

you As that can still is high market see is about year, a on this very flat. ambition

Operator

Hallead of Your Kurt next from question with line Benchmark. the comes

Kurt Hallead

of questioning that kind Olivier, I Roger's adoption get the is maybe focus down respect rate like the of a up with on update follow you've to an even think maybe Lumi. line to but I'd what to seen with digital, on do the maybe on

you think can customer some along you September, customers if potentially success those some opportunities -- early something maybe in your saw pretty from or last And you stories you when some potential that reference about have and significant base, had this XXX to lines. guys I going talked X,XXX growth customers

first Lumi So great. be would maybe update on just an

Olivier Le Peuch

pleased. Yes. we No, Lumi, very I think are

this launched months X we ago. think I less than

that days. are we I AI the data sets also connecting workflow it's and/or early, the power interested to both the again, workflow engineered interest, are And the and But think getting or very data in to customers and think, access to capability the to have set. strong. number it's in I with [indiscernible] AI platform So our early production pilots, of pilots interested unlocking of very, AI Gen is the customers

interest, revenue have. this to -- optimize can we with into offer and across So benefit a you we assets. directly our beyond that our very adopt few adopting the AI customers think you number rigs, we growth their what have -- in we going are AI I launch, offer pilots and It's to examples disclose intake of that you forward. we you to see of see just in the will continue that capability the will on assets, we've with too kind of for customers the playing will been very world a or early using set will this. takeup Lumi talking rate on with are example using more post the it's pleased with numbers seeing of and weeks, And of terms with okay, you're but directly for when of and we as terms because operation see more producing give And

trend you this early too good. explore it's I numbers, of give what early very very the can do confident the to adoption interesting to pilots but feedback, and very, early number and is and think is early I'm So test

Kurt Hallead

year Great. about on the boding just on and on the and a talked We Appreciate that. out horizon And the this and appear rebalance year. through the in maybe the macro. your market the a how kind follow-up Full commentary for dynamics on of through predicated for investment Circle to things well of end be mapping oil

were kind more Just a it's Or break project -- will, by little you and -- base think what customer a they if XXXX? jogging economics? how to you more do than if you is could getting out? tap a is start this and think wary Do just your again in we've of can it bit start -- we then just all play done about

Olivier Le Peuch

months, able last in think partly and discussion X FID, I that pace moderating the -- both the spending activity continuation the approach on the has by on concern -- market hence the in of supply translated No, for adjustment first have approach U.S. I that foremost, was think of driven I we that and in cautious the cautious timing into -- moderated oversupply of think compression seen in a a the growth to international and market

long-term security. the in this and pull play gas a both energy -- through. energy global center outlook, the data to it combine all the pull rebalance We the from from Now to

full half of think steady, in So as on going in and activity some in that we commercial gas, upside signal, this in come depend the materialize of full we'll we I by level it of which to of in by flat outlook in cycle this have macroeconomics. the will sustain higher in pickup driven and long-term a the deepwater including end the see we or said, early early see year driven back continuous is the signs and second forward. an to production short XXXX of directionally, year-on-year, short-cycle at deepwater what year the driven play by But the

Operator

Your Gengaro of Stifel. from the next question Stephen with comes line

Stephen Gengaro

how into us of is margin Could the for the give -- some we segments? when takes first The about the at and different you a -- you the puts segments little think think bit when the in But the just dug flavor in beginning about thinking different XXXX. you're the call. of we maybe profile

Olivier Le Peuch

the think, don't core, decline can growth we not slightly in is well mix we that construction. typically are and and production in changing understand that aiming system as commented lateral to be growth guide, the of but offset by the you the of will I the -- performance guide, We

do you math this. the understand the can consequence of So and

You digital also understand the growth will digital of that benefit have to margin an integration expansion.

and mix you So this you get build of than different all a last year.

need level discipline You the that we on reinforce earnings ambition had our program to to the cost above delivered out and match our in ChampionX. pricing that to maintain XXXX, at we excluding

Stephen Gengaro

about what I my of in sort when just call. That's or Mexico about too with to you Mexico, perspective Great. what's recovery for what a then you happening on 'XX was follow-up think prospects Okay. early And just later? you think maybe sort helpful. the it's of your think question in

is under of the leadership budget PEMEX I think the transition. government, the team this -- and

that in it's by This decline offset Latin Argentina by will think is Mexico Brazil. is is clear activity I already -- -- America has and what declined. and

a to resilience but think and leadership or that priority our change I across outlook And growth Brazil there we call to is PEMEX. something of growth towards indicated, is will portfolio strength. it's we we in and it's of the Mexico, the early election Argentina the and exposure This the outcome too of foresee government in offset the select the leverage partly that we resilience as believe America. in in So Latin have where diversified that growth countries

Operator

the over comments. I SLB call will turn to closing for

Olivier Le Peuch

takeaways. gentlemen, you, Kate. conclude today's to I and leave you like Ladies call, with the Thank as following we would

to of navigate evolving XXXX on divest strength our market dynamics. the portfolio to core First, SLB results

expansion continue performance to our strong and market address further will increased exposure to returns we deliver our shareholders. forward, journey, advantage cash margin to Moving unique flows and

Second, Primarily, of we I'm technology integration the forward are announced ability strategy, will we expanding our making acquisition couldn't growing through beyond I capabilities, expanded and creating customers, recovery value an partners gas you With focus progress of sharing ChampionX. we on and the through progress customers our offshore the portfolio shareholders. this, our look for our to leadership our for create our oil I exposure and continue you. value confident inclusive in the call. today's to production year. conclude with and Thank throughout

Operator

conference This today's concludes call.

may now disconnect. You

Schlumberger Limited (SLB) 17 Jan 252024 Q4 Earnings call transcript