AI Sentiment: Bullish
Reason: Schlumberger witnessed a significant surge in its Q4 2024 revenue, surpassing market expectations. All its segments and geographic divisions performed well, and the company reported a healthy profit margin.
Renowned oilfield services company, Schlumberger, recently released its fourth-quarter financial results for 2024. The company witnessed a significant surge in revenue, which stood at $8.8 billion, a 6% increase in comparison to the previous quarter. Despite the challenging market conditions, Schlumberger's performance was quite satisfactory, and the company's revenue surpassed market expectations.
One key contributor to this growth was the company's Reservoir and Infrastructure segment, which generated $2.6 billion, marking a 5% increase from the previous quarter. The Well Construction segment also performed well, bringing in $2.3 billion, which signifies an 8% rise from the last quarter. The Production Systems segment was not far behind, contributing $2 billion to the revenue, up by 5% from the previous quarter. However, the Digital & Integration segment showed a slight dip, with a revenue of $1.9 billion, a decrease of 1% from the previous quarter.
When it comes to geographic divisions, the company's North America revenue stood at $1.7 billion, up by 2% compared to the previous quarter. The Latin America region contributed $1.2 billion, marking a 6% increase from the previous quarter. Europe/CIS/Africa region revenue was $2.6 billion, up by 8%, while the Middle East & Asia region revenue was $3.3 billion, up by 7% from the previous quarter.
The Schlumberger's pre-tax operating income was $1.3 billion, a significant increase from the previous quarter's $1.1 billion, indicating a healthy profit margin. The company's net income was $471 million, equating to $0.32 per share. This is a significant improvement over the previous quarter's net income of $431 million, or $0.30 per share.
As a part of its future strategy, Schlumberger is keen to leverage its strengths in technology and innovation, and continue its focus on digital integration and reservoir performance. The company also aims to maintain its strong cash flow and balance sheet, while maximizing returns for its shareholders.