Schlumberger CEO Warns Macro Uncertainty May Hit Demand, Commits To Protect Margins And Cash Flow

Revenue declined 3% twelvemonth implicit twelvemonth to $8.49 billion, missing estimates of $8.59 billion. Adjusted EPS slid 4% to 72 cents, missing the statement of 74 cents.

North America gross roseate 8% YoY to $1.72B, driven by digital, subsea, and information halfway sales, but fell 2% sequentially connected little drilling activity.

International gross declined 5% year-over-year to $6.73 billion, arsenic gross successful Latin America fell 10% YoY, driven chiefly by reduced drilling enactment successful Mexico.

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Revenue by Division: Digital & Integration $1.006 cardinal (+6% YoY); Reservoir Performance $1.70 cardinal (-1% YoY); Well Construction $2.98 cardinal (-12% YoY), and Production Systems $2.938 cardinal (+4% Y/Y).

"First-quarter adjusted EBITDA borderline was somewhat up twelvemonth connected twelvemonth contempt softer gross arsenic we continued to navigate the evolving marketplace dynamics," stated SLB Chief Executive Officer Olivier Le Peuch.

Adjusted EBITDA was $2.02 cardinal for the quarter, down 1.8% YoY, and borderline expanded 17 bps to 23.8%. The pretax conception operating borderline contracted by 60 bps for the 4th to 18.3%.

Operating currency travel for the 4th totaled $660 cardinal compared to $327 cardinal a twelvemonth ago, and escaped currency travel was $103 million. Cash and currency equivalents totaled $3.897 cardinal arsenic of March 31, 2025

"SLB is committed to returning much than 50% of its escaped currency travel to our shareholders, and we volition materially transcend this people successful 2025. We proceed to person assurance successful our quality to make beardown currency travel successful the existent situation and volition instrumentality a minimum of $4 cardinal to shareholders done dividends and stock repurchases this year," Le Peuch added.

Dividend: Schlumberger declared a quarterly currency dividend of $0.285 per share, payable connected July 10, 2025, to stockholders of grounds connected June 4, 2025.

"The manufacture whitethorn acquisition a imaginable displacement of priorities driven by changes successful the planetary economy, fluctuating commodity prices and evolving tariffs — each of which could interaction upstream lipid and state concern and, successful turn, impact request for our products and services. In this uncertain environment, we stay committed to protecting our margins, generating beardown currency travel and delivering accordant worth to our customers and shareholders successful 2025," Le Peuch concluded.

SLB completed its $2.3B accelerated stock repurchase programme connected April 7, 2025, buying backmost 56.8 cardinal shares astatine an mean terms of $40.51.