Q1 2025 Schlumberger NV Earnings Call Transcript
Key Points
- Schlumberger Ltd (SLB) achieved further adjusted EBITDA margin expansion year on year despite a challenging market environment.
- The company reported double-digit revenue growth in several international markets, including the United Arab Emirates, North Africa, Kuwait, Argentina, and China.
- North America showed positive results driven by the offshore market, with higher sales of digital and subsea production systems.
- Production Systems division experienced steady revenue growth and further margin expansion, supported by strong demand for surface production systems, completions, and artificial lift.
- Digital & Integration division saw a 17% year-on-year revenue growth as customers increasingly adopted digital technologies and solutions.
- First-quarter revenues decreased by 3% year on year, with lower revenue in international markets due to reduced drilling activity in Mexico, Saudi Arabia, and a steep decline in Russia.
- Reservoir Performance division faced revenue decline and margin impact due to challenges on new projects and lower evaluation and exploration activity.
- Well Construction division experienced a year-on-year revenue decline due to lower drilling activity across North America and international markets.
- The macroeconomic environment remains uncertain, with global upstream investment expected to decline compared to 2024.
- Tariff-related uncertainties pose potential risks to margins, particularly affecting imports of raw materials into the US and exports subject to retaliatory tariffs.
Good morning. My name is Megan and I'll be your conference operator today and would like to welcome everyone to the 1st quarter SLB earnings call. (Operator Instructions)
As a reminder, this call is being recorded. I will now turn the call over to James R. McDonald, Senior Vice President of Investor Relations and Industry Affairs. Please go ahead.
Thank you, Megan. Good morning, and welcome to the SLB first-quarter 2025 earnings conference call. Today's call is being hosted from Houston, following our board meeting in the Middle East last week. Joining us on the call are Olivier Le Peuch, Chief Executive Officer; and Stephane Biguet, Chief Financial Officer.
Before we begin, I would like to remind all participants that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. For more information,
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