Schlumberger NV (NYSE:SLB) shares are trading lower after the company reported mixed third-quarter results. Revenue grew 10.2% year over year to $9.159 billion, missing the $9.25 billion consensus.
SLB said sales increased in the Middle East, Asia and offshore North America, but were offset by a decline in Latin America, with Europe and Africa remaining stable.
Adjusted earnings per share rose 14% to 89 cents, above the consensus of 88 cents.
Revenue by division: Digital & Integration $1.09 billion (+11% YoY); Reservoir performance $1.823 billion (+9% YoY); Well Construction $3.312 billion (-3% Y/Y) and Manufacturing Systems $3.103 billion (+31% Y/Y).
International sales grew 12% year on year, with growth of 16% in the Middle East and Asia and 16% in Europe and Africa. Sales in the North American market increased by 3%.
Related: SLB gears up for Q3 print; Here are the recent forecast changes from Wall Street’s most accurate analysts
“This performance was achieved despite an environment in which short-cycle activity growth weakened and some international producers implemented cautious spending due to lower oil prices and ample global supply, while US land activity remained subdued,” said Olivier Le Peuch, CEO of SLB.
Adjusted EBITDA was $2.34 billion for the quarter, up 12.6% year over year, and margin grew 54 basis points to 25.6%. Pre-tax operating margin increased 51 basis points to 20.8% in the quarter.
Operating cash flow for the nine months was $4.212 billion, compared to $3.615 billion a year ago, and free cash flow was $2.36 billion.
For the quarter, cash flow from operating activities was $2.45 billion, and free cash flow was $1.81 billion.
Dividend: SLB declared a quarterly cash dividend of $0.275 per share, payable on January 9, 2025, to shareholders of record on December 4, 2024.
Cash and short-term investments totaled $4.462 billion as of September 30. SLB repurchased 11.3 million for $501 million during the quarter.
In addition, SLB announced a definitive agreement to sell its interests in the Palliser Block in Alberta, Canada. Terms of the deal were not disclosed.
Price promotion: SLB shares are trading 1.41% lower at $43.37 premarket at last check Friday.
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This article Schlumberger Q3 Earnings: Mixed Results as the Middle East Shines and Latin America Falters originally appeared on Benzinga.com
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