SLB delivered a robust first quarter to start 2024, underscoring the breadth and durability of the ongoing oil and gas cycle. Revenue rose 12.6% year over year to $8.71 billion, with international activity driving the gains (international revenue +18% YoY; Middle East & Asia up 29% YoY), while North America softness persisted (revenue down ~6% YoY) amid lower gas prices and market consolidation. EBITDA of $1.743 billion yielded an adjusted EBITDA margin of 23.6%, marking 13 straight quarters of YoY margin expansion and reinforcing the company’s capital discipline and execution efficiency. Management highlighted a multi‑quarter, likely multi‑year, cycle characterized by breadth, resilience and energy security demand, with a constructive outlook for international activity and a stabilizing/downside-tilt risk profile in North America offset by international strength.
Strategically, SLB is leveraging three engines of growth—Core oil & gas (including offshore via OneSubsea), Digital & Integration (D&I) and New Energy (Carbon Capture & Sequestration via partnerships with Aker and other initiatives). The planned ChampionX acquisition adds production chemicals, lift solutions and an enhanced offshore proposition, with synergies targeted at $400 million annually (approx. 75% cost, 25% revenue) and accretion by year two. Digital momentum remains a core growth vector, with a guided high‑teens revenue growth target for 2024 and expectations for sequential margin improvement as digital adoption accelerates. The first quarter also showcased constructive liquidity and capital allocation dynamics: cash from operations of $327 million, capex of ~$549 million, and a $270 million repurchase during the period, with total shareholder return guidance raised to $3 billion for 2024 (split evenly between dividends and buybacks).
Near‑term, SLB repeated guidance for 2024: mid‑teens revenue growth, international strength offsetting slower North America, Q2 sequential international growth in the mid‑single digits and North America in the low‑single digits, and adjusted EBITDA margin expansion of 75–100 bps. Management underscored a positive digital trajectory, backlog strength in offshore assets, and ongoing monetization of OneSubsea and other differentiated technologies. The longer‑range thesis remains anchored on international demand, gas‑oriented capex, and carbon‑reduction technologies, including a strategic CCS collaboration with Aker Carbon Capture. Investors should monitor the cadence of international project commitments, the pace of ChampionX integration, and the realization of digital and offshore backlog milestones as key drivers of visibility into 2024 and beyond.