Oilfield company SLB raises dividend, accelerates share repurchases as quarterly profit beats expectations, warns of flat 2025 revenue due to oil oversupply.
The world’s largest oilfield services company, previously known as Schlumberger, has increased its quarterly dividend by 3.6% and announced an “accelerated” share buyback program of $2.3 billion. The company’s profit for the fourth quarter beat expectations, despite warning that revenue will remain flat in 2025 due to excess oil supply.
The company’s CEO, Olivier Le Peuch, attributed the market concerns to customers adopting a more cautious approach to short-term activity and discretionary spending, driven by concerns of an oversupplied market. He also expects a rebound in the second quarter, particularly in international markets, as he expects the oil supply imbalance to gradually abate.
The company’s revenue was driven mainly by growth in the Middle East and Asia, while revenue in Latin America declined due to reduced drilling activity in Mexico. North American revenue grew 7%, driven by higher digital sales and offshore activity in the U.S. Gulf of Mexico, while U.S. land drilling activity declined.
The company reported a profit, excluding charges and credits, of 92 cents per share, beating analysts’ average estimate of 90 cents. The charges included a restructuring-related cost of $223 million. The company’s total revenue of $9.28 billion beat analysts’ average estimate of $9.18 billion.