SLB (SLB) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 18% YoY, adjusted EBITDA 25%, and adjusted EPS 37%; free cash flow reached $4.04B.

• Q4 revenue increased 8% QoQ and 14% YoY; adjusted EPS rose 10% QoQ to $0.86, with adjusted EBITDA margin at a cycle high.

Financial highlights

• Q4 revenue was $8.99B; GAAP net income attributable to SLB was $1.113B and diluted EPS was $0.77, up 4% YoY.

• Q4 adjusted net income was $1.242B and adjusted diluted EPS was $0.86, up 21% YoY; adjusted EBITDA was $2.277B, up 19% YoY.

• FY revenue was $33.135B; GAAP net income attributable to SLB was $4.203B and diluted EPS was $2.91, up 22% YoY.

• FY adjusted EPS was $2.98, up 37% YoY; adjusted EBITDA was $8.107B, up 25%, and cash flow from operations was $6.64B.

Outlook and guidance

• FY 2024 capital investment, including capex, exploration data costs, and APS investments, is expected to be ~$2.6B, matching FY 2023.

• FY 2024 growth is expected to be led by international markets, with Production Systems, Reservoir Performance, Well Construction, and Digital contributing to expansion.

• Further margin expansion and increased share repurchases are planned for 2024; the dividend was raised 10% to $0.275 per share quarterly.