SLB Hicks 2025 Share Repurchase Program; AI is the 'X Factor' for the oilfield services industry.

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SLB (SLB), previously Schlumberger reported slightly better-than-expected fourth-quarter revenue and earnings on Friday, widening its quarterly gap. The S.L.B. Stocks rose earlier.

The oilfield services giant’s Q4 EPS rose 7 percent to 92 cents, while sales rose 3 percent to $9.28 billion. Analysts were expecting earnings of 90 cents per share and total revenue of $9.18 billion, according to FactSet.

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SLB increased its quarterly dividend by 3.6% to $0.285 per share and announced that it has entered into an accelerated share repurchase (ASR) transaction to purchase $2.3 billion of the company’s common stock. Under this plan, SLB said it is targeting to return at least $4 billion to shareholders by 2024, up from $3.3 billion.

Meanwhile, for the full year, SLB’s revenue growth increased 10 percent to $36.29 billion, while annual profit per share rose 14 percent to $3.41. The company’s digital services division, which includes AI and cloud-based platforms, will stand out in 2024, with revenue increasing by 20% in 2023. The S.L.B. Reservoir performance segment sales rose 9 percent. Construction revenue is down 1% compared to 2023.

The full-year performance was led by revenue growth in the Middle East and Asia and Europe and Africa, SLB CEO Olivier Le Peche said in Friday’s earnings call. Le Peuch added that the digital and integration segment has “increased demand for digital products and solutions” and increased demand from customers “higher recovery from existing assets.”

“AI is the X factor for our industry, and I am confident that SLB will continue to be a leader in this area, enabling us to deliver continued performance for our customers, partners and shareholders,” said Le Peuch.

SLB in the year At the end of 2024, he announced new partnerships and collaborations Nivea (NVDA), Amazon.com()AMZN) AWS and Aramco.

SLB stock and oil prices

Shares jumped 3.3% to 42.48 in after-hours trading on Friday, after rising 1% to 41.09 on Thursday. In January, SLB gained more than 7%. The stock is looking to move above its 50-day moving average for the first time since early December.

In October, SLB saw slightly better-than-expected third-quarter earnings, with earnings missing expectations. At the time, the oil services firm said growth in short-cycle activity slowed in the third quarter, with some global producers “paying cautiously due to low oil prices and ample global supply.”

U.S. oil prices will rise to match U.S. natural gas prices by 2025. West Texas Intermediate crude traded below $79 on Friday, its highest level since July. Natural gas prices retreated about 4 percent, but are still above $4 per million British thermal units, going back two years.

Meanwhile, oil and gas pipeline stocks are starting to show signs of strength. The 47 stocks in IBD-monitor Oil and gas-transportation/pipeline The industry group has collectively gained nearly 10% this month. Group leader stock Sons Morgan (KMI) rose from a cup base above the traditional 28.81 buy point on Tuesday.

Kinder Morgan reported fourth-quarter earnings and earnings on Wednesday. Analysts project EPS growth of 28% and sales to increase by about 4%.

SLB’s stock has a composite rating of 64 out of 99. In addition, the stock has a Relative Strength Rating of 19 and an EPS Rating of 93.

Please follow Keith Norton on X @KitNorton For more coverage.

SLB Hicks 2025 Share Repurchase Program; AI is the ‘X Factor’ for the oilfield services industry.

SLB stock and oil prices

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