Schlumberger maintained its growth momentum throughout the fourth quarter, producing significant revenue growth and additional sequential and annual margin increase. This resulted in the company delivering an all-around beat. Strong year-end sales in Digital were added to the quarter’s robust activity growth in the Middle East and elsewhere. Again, growth was broad-based, and the company had an decent operational, commercial, and financial performance. They had sequential revenue growth and margin expansion in North America and internationally. New technology, service pricing, and digital adoption showed good future trends. Besides, Schlumberger launched its new brand identity, incorporating sustainability. Because of its strong positioning, the company was able to profit from the underlying macro trends that will determine the direction of the energy industry, including the development of new energy systems, industrial decarbonization, oil and gas technology innovation, and digital transformation. On the other hand, exploration data sales, INNOVATION FACTORI, and AI solutions saw a significant increase in the digital sector. They finished the year with over 270 DELFI customers and a more than twofold increase in SaaS revenue. We give the company a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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