Schlumberger Today
Schlumberger
- 52 week range
- $36.52
▼
$55.69
- Dividend yield
- 2.52%
- P/E ratio
- 14.01
- Price target
- $56.03
Oilfield services are constantly evolving with no end in sight: Schlumberger, doing business as SLB New York Stock Exchange: plunderedis ideally positioned to capture value and leverage artificial intelligence to do so. Recycling is being driven by factors including lack of investment before 2020 and technology. In this case, the technology focuses on improvements in oilfield equipment coupled with the Lumi platform. Lumi is SLB’s oilfield AI platform.
“AI is a differentiator for our industry, and I am confident that SLB will continue to lead in this space, enabling us to deliver sustained superior performance to our customers, partners and shareholders,” said Olivier Le Bouche, CEO of SLB.
Blame him On-premises or cloud-based Service using generative AI and LLMs to unlock insights from complex data sets across cloud domains. The services improve efficiency and accuracy at all levels, from exploration to extraction, significantly reducing costs and CO2 impact. To facilitate the adoption and use of AI, Lumi is not the only AI service. SLB also offers AI Factori. AI Factori is a B2B service that customizes AI applications for expanding oilfield operators as they grow.
SLB outperforms as investment in technology drives growth
SLB growth in the fourth quarter slowed sharply as expected but remained strong, beating analysts’ expectations as investment in technology offset weakness in well construction. Consolidated revenue of $9.28 billion rose 3.2% year over year and 100 basis points above the MarketBeat analyst consensus. Digital technology and integration led 10% growth, followed by strong 9% gains in production systems, a modest 4% advance in reservoir performance, offset by a 5% decline in well construction.
Q4 results and year-end margin are also good. The company expanded its margins at most operating levels, resulting in system-wide improvement and accelerating single-digit GAAP and adjusted earnings increases. Adjusted earnings rose 7% and beat expectations by more than 200 basis points, with continued strength expected. The only bad news is that net income decreased due to investment and return of capital. The takeaway is that this company has strong cash, free cash flow, expected growth, and a sustainable capital return.
SLB announces an accelerated share buyback
Schlumberger dividend payments
- Dividend yield
- 2.52%
- Annual profits
- $1.10
- Annual earnings growth for 3 years
- 30.06%
- Dividend distribution ratio
- 35.37%
- Upcoming dividend payment
- April 3
SLB Dividend Date
The fourth quarter capital return included dividends and stock repurchases. Annually, the dividend yields more than 2.5% and is compounded by aggressive stock buybacks. Q4 buybacks were nearly 1% of market cap in mid-January, and for the full year they were more than 3%. The balance sheet is healthy, with positive free cash flow for the quarter and year, allowing for balance sheet improvement and accelerated share repurchases in Q1 2025. The company announced $2.3 billion principal completed, bringing the total to Q4 2024 /Q1 2025 Buybacks to approximately 8% of market cap.
Buybacks are expected to continue strongly due to cash flow and balance sheet health. Year-end highlights include increases in cash, receivables, current and total assets, and fixed inventory with no increase in total liabilities and decreased leverage. Shares are up more than 4.5% for the year; Long-term debt is about 0.5 times equity and 3 times cash, which puts it in a strong position.
SLB Stocks Rise to Critical Resistance Point: Double-digit Gains Possible
SLB price action in 2024, creating a great value opportunity for investors. The stock trades at nearly 12 times mid-January earnings expectations while paying more than 2.5% in yield. The recent price action shows that the market is recovering from the support target and is on track to test the critical resistance. The action following the release sent the market up another 2% and on the verge of setting new highs. The critical resistance point is near $42.75 and can be easily broken as it lies below analysts’ target range. The lowest target tracked by MarketBeat is $44, which is 3% above critical resistance, with a 35% gain indicated at the consensus target.
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