SLB Backs EBITDA, Revenue Growth View For FY24 - Update

(RTTNews) - Oilfield services company Schlumberger Ltd. (SLB), while reporting higher first-quarter results, on Friday said it continues to expect mid-teens EBITDA growth for fiscal 2024 with increased revenues.

In pre-market activity on the NYSE, SLB shares were losing around 1.1 percent to trade at $50.36.

In the second quarter, the company projects broad sequential margin expansion across all Divisions and geographies with seasonal rebound in activity in the Northern Hemisphere coupled with robust activity internationally, led by the Middle East, Asia, and Africa.

SLB CEO Olivier Le Peuch said, "We remain confident in our global revenue growth outlook for 2024, with softness in North America being offset by upside in the international markets. The dynamics of this cycle remain intact, with international and offshore growth taking place across all geographies, benefiting all of our Divisions as we continue to be awarded new contracts, enhancing the quality and longevity of our revenue backlog."

Further, the company confirmed its target to return $7 billion to shareholders over the next two years. This represents a target for returns to shareholders of $3 billion in 2024 and $4 billion in 2025.

In its first quarter, Schlumberger's profit increased from the same period last year and beat the Street estimates.

The company's earnings came in at $1.07 billion, or $0.74 per share. This compares with $934 million, or $0.65 per share, in last year's first quarter.

Adjusted earnings were $1.08 billion or $0.75 per share for the period. Analysts on average had expected the company to earn $0.70 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 12.5 percent to $8.71 billion from $7.74 billion last year.

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