Schlumberger Limited (SLB) 21 Jul 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you very much for standing by and welcome to the SLB Earnings Conference Call. At this time, all participant lines are in a listen-only mode. Later, there will be an opportunity for your questions. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to the SVP of Investor Relations and Industry Affairs, James McDonald. ahead. go Please

earlier Good quarter Leah. being welcome the meeting, to from Thank earnings morning, conference second held Board our XXXX France, is week. call. SLB Paris, you, following and this Today's hosted call

Le Joining Officer; Chief Officer. and are Financial Executive Chief Peuch, us Biguet, call on the Olivier Stephane

could we to like involve today making are filing materially These matters I filings. Before all SEC projected statements. that be we would in begin, results some our and you I will participants and cause uncertainties from those therefore that risks other remind XX-K differ to to of our the statements these latest our forward-looking. refer

financial comments may include Our today non-GAAP measures. also

in our to which most financial and our comparable website. reconciliation quarter details Additional press is the release, be on directly GAAP second found measures can

I that, With to over turn call will Olivier. the

thank Thank our will remarks, for you joining you, us three prepared review cover few and topics. first Ladies the my the I quarter. today. highlights will from a James. In gentlemen, call on financial I of

with third discuss markets. full-year. more the offshore your seeing outlook will the in are open in positive are the on before we details the the financial then progress for momentum questions. and making digital concluding will we our will for will we third, international exciting quarter I And and and I share provide our Stephane Next, results,

cash the expanded and solid our performance, markets pre-tax first in operating and across quarter second year of positioning globally. the financial translating results strength share, Our earnings strategic is margins. per growth closed and and to continue portfolio to most with the free revenue, our and This flow, attractive, of half segment EBITDA the we accretive, resilient demonstrate

increasing International areas. and revenue growth continued all across strong captured divisions broad geographic momentum, XX% year-on-year we growth as its

than grew Second Caspian, international than period. Mexico, India Brazil, all XX% Most XX increased XX Angola, Guyana, by XX% and Arabia, GeoUnits. our revenue Saudi over more more this in of year-on-year notably, UAE, quarter

our the highest international operating year-on-year I margin it last incremental of underscores over portfolio breadth emphasize. drove that the and to This our three years, continue

reach wherever true global seen as opportunities This positions SLB's and in ability they is seize us shields regional outperformance. have for give we us arise. recently us our to business a North fluctuations, long-term differentiator the for and America, from

revenue Following the remarks on in reflect release pervasive, highlights very would revenue, North a grow to from continues. margins activity America, agility the to was this earnings were I U.S. the upcycle few notable shared increase In broad The morning, this the and expanded count. our quarter. characterizing land across we markets continued to geographies see like expand this rig and and Internationally, sequentially. pleased growth I Mexico, solidly and divisions outperforming in the of we our all highlighting Gulf our the

the our support quality Our to of revenue continues focus our margins. on

we that Sequentially, our fueled adjustments adoption, inflation-driven was capacity. This expanded trends from and tight margin. service stemmed and pricing by technology contract our leverage, operating strong positive operating increased pretax segment international

for quarter. and considerably, our team earnings their working the of from hard for during and $X the grew nearly cash delivering cash want throughout billion and with I higher capital, work thank generated we flow our performance And operations improved SLB entire customers to free exceptional the sequential flow and shareholders value quarter. our

macro environment. take me to touch a let Now, moment the on

nearly of as half our revenue international few offshore strong and business, have that. exhibit continue offshore we the moderated. nearly portfolio, XX% strengths playing of This projected to America as North for quarters, of the international is to the markets As and represents past our growth has global comprises

business. driving these upcycle market opportunities and and creating further of durability rate the growth shifts new our toward this breadth, the international, conditions for As are resilience,

where describe me taking Let this is place.

Saudi of Middle momentum Norway, the notably in investment by the international accelerating. the Turkey; Eastern expansions Guyana, a UAE, energy fuel security resilient and in years in Qatar; and Arabia, appraisal past of and Brazil, capacity the is Mediterranean; the transition. is East, and and energy long-cycle as critical production gas few In recognition source the for supported developments the This exploration and across Africa return the markets, of

XX% region In material upstream extend Several the XXXX, beyond to years, is billion increase investment. of resulting the three oil capacity sustained the as capital this maximum expenditure, XXXX. Middle XXXX invest is of and countries also $XXX by they production million attain levels other in to to East, announced in increases gas to nearly previous to From day expected a Arabia XXXX. XX upstream have allocate in per that capital record Saudi barrels a compared expenditures

we continue energy witness commitments offshore world to in to a hasten over and resurgence Operators Furthermore, discovery, driven broad development regionalization. by are security the large-scale making and development times, infill all new increase basins, both oil and exploration. tie back gas, in the productivity mature increased of for activity and and in support is This assets. in projects their new accelerate resulting

billion $XXX than countries, These awards many This deepwater. and we FIDs across an a results outlook with Turkey. of the we increase reflects strong This offshore taking new commodity others, world. activity and attributable addition than the XXXX, building between nearly short-term of in earnings billion investments foundation and notably are to the Brazil, many FID contract XX is seeing in volatility. are in the in global from XXXX contracts, release, place in highlighted in to decoupled With reflected in are Mexico, basins projects press when price These with to $XXX backdrop, more this XXXX-XXXX. XX% anticipate global more compared more than

Reservoir in expect in be enhance activity in Well for new we for further all. by Production to opportunities Performance accelerating Construction, and it expansion growth subsea; forward, will appraisal, digital exploration led Moving and Systems

generates by trusted more information and Indeed, amounts insights, turning as In our the technologies that for more a massive make sustainable. industry it the industry energy affordable, data, opportunities and adoption we of into our digital of and actionable business remains increased whole, and significant integration more and can the of production one most growth. accessible, capturing and

industry, our trends for there are clearly and setting moment a digital critical shaping three a higher for path outlook. is future, carbon its This the lower value concurrently

First, adoption computing cloud at scale. of the

geoscience engineers geoscientists is teams. accelerate to For and uncertainties. de-risk across asset gains this for at productivity compelled industry is and development is development and time cycle workflows, surface our supporting happening This both subsurface significant a when the

cloud-based to this benefit in growing organizations of digital SaaS global to trend adoption subscription our users flexible We delivered cumulative model continue personalized platform, of software- number Delfi and the customer the a through with in from XXXX. XX% year-on-year as-a-service

press Petrobras and are chain. Delfi deploying fundamentally how only earnings with of our the in examples of value just ENAP changing enterprise-wide two work shared E&P release, we across As aim customers the they

industry on data workflows. even And unlocking per is amount of upstream The begin artificial is Second, can touch this data across applications industry AI the the of scale. XX single intelligence at to adoption across well day. A produce more platforms and doesn’t our the power of data for of terabytes open at data than scale. liberating total production development, exploration, data

deployment. data this trend from is foundations AI and both driving and benefiting through SLB

Energy of are Data seeing Technical capabilities data Data our the OSDU Enterprise in Microsoft with success with We by for comprehensive powered commercialization emerging Standard. most the delivers subsurface requirements alignment Services. the the early This where offering more than AI of with And success witnessing of in our we with Factory, all solutions we addition XXXX, customers rich XX have developed more XXX them capabilities. domain Innovation are to generic than with AI content tremendous since Solution

we utilize and develop maturity, are gaining deployment digital the in digital both and impacts clearly are inflection across operations of autonomous operators footprint, and an significant transforming Third, production, in assets. operations construction way carbon performance. with seeing efficiency, automation to operations From on the well

as and time adoption and Today, drilling with PETRONAS operations in access a performance, autonomous savings. with Cognite Neuro Kuwait using earnings gaining enabling momentum as our our release. increasing of accelerating both for industry, technologies our Company unlocking contract their to exemplified Similarly, Cairn the rig solutions, while reduce operations is highlighted platform are customers these in consistency production with the manual to Oil partnership

Edge technologies more connected at and doubling with deployed, to to real-time connected continue within is X,XXX edge. deploy Delfi processed We assets operations have directly we Finally, generated deliver year-on-year. from the Agora hardware, data than where currently insights AI

positioned expansion. positive technology market our these digital as as and harness outperformance fully and is well margin conditions financial to leadership SLB to drive

strategy journey our on trends execution. I the of progressing of in our between XXXX are double outcome are the confidence business digital our and XXXX, to discussed reinforcing our We size have the and just

a rest that next full-year in confident remain full-year positive beyond. visibility describe reinforces the our progressing. financial and have forecasts, of first XXXX half, how significant a and ambitions After we ambition growth baseload of the see I’ll we our activity our into year

revenue growth more year-on-year the adjusted in expect growth mid-XXs. to We continue and XX% than EBITDA of

expect in all we mid-single specifically the In to Turning the and quarter, to to areas EBITDA focus will expand Middle adoption, we operating revenue revenue, led global sequentially, the have international With geographical revenue will in America This leverage, by margin into harnessing on growing contrast, grow third result seen be further Asia. by points XX we East international operating and down. than slightly further North cycle. technology of the our highest with more quality the markets, margins expect by basis this sequentially. digits

over turn now call will I the to Stephane.

and ladies and Olivier gentlemen. morning, good you, Thank

and $X.XX. $X.XX, This and the represents not Second XX%, any when or the quarter current quarter compared quarter. earnings sequentially an per increase record second year. credits charges of share $X.XX was or to of charges We did excluding last during credits

earnings quarter by resulted and mostly East points international Sequentially, highlights high Middle second potential our operating quality accelerating service international technology margins which led increased intensity billion high the international particularly to underlying margins. and our our the by revenue, new This revenue basis offshore sequentially, XXX X% incremental strong increased performance Overall, of in segment margin with the business, pretax expansion. due of the markets $X.X driven Asia.

second increased margin absolute for XX.X%. In Company-wide adjusted EBITDA XX% quarter adjusted was the year-on-year. dollars, EBITDA

As of this terms, a XXXX. are On goal. on a XX%; mid-XXs reminder, we ambition adjusted has for basis, our full-year the to the EBITDA to in percentage EBITDA so grown grow, for adjusted achieve track year-to-date in is

was segment points expanded quarter East divisions. robust North as was increased growth and The up Asia outpacing Middle Pretax year-on-year America XX% the and growth basis XX%. of margin XX%, significant revenue international XXX Second core by in activity. our led significantly revenue margins strong operating with offshore growth year-on-year revenue international

go now results for the me through quarter each second Let division.

Integration increasing $XXX digital and X XX%. percentage of to X% margins increased & higher sequentially first primarily million Digital growth expansion by low following revenue sales, points were the seasonal The sequential quarter quarter. the driven with of Second revenue margin

digital other decreased exploration we data cloud quarter X and the exceptional and was the of declined including last Year-on-year more our Integration year. and XX% Growth edge X% percentage margins in second year-on-year a transfer solutions. Digital than absence revenue in in & revenue products to due fees points recorded services however, strong, of increase

$X.X while and margins led internationally, XXX Reservoir These Performance strong primarily East XX.X%. sequentially, both Year-on-year, basis points of grew growth by XXX land Middle the to billion offshore. XX% improved and margins points due X% strong revenue growth revenue Asia. internationally, increases driven and to increased were increased basis on by

increased revenue pricing while XX.X% strong basis areas Year-on-year of grew all as improved $X.X points increased across growth basis Well XXX and margins as very activity improvements higher with by Construction well on activity pricing. of driven billion points XX%, X% and while margins geographical measurements, equipment fluids expanded sales sequentially, internationally. strong revenue XXX

and of revenue points revenue significant and formation Systems of highest sequentially division. Europe milestones XXX absence since sequential the the Africa. partially led margins margin in the Finally, by $X.X project Asia, growth by quarter of XX%, billion the to The expanded Middle we increased X% East last offset representing and reached the Production basis was

of XX%, while and margins completions higher systems revenue constraints. chain and of basis XXX driven easing and surface points logistics supply Year-on-year, increased sales production by expanded the

turning Now liquidity. our to

to over improved increase flow During last free from quarter is free the $X.X the billion capital. which flow of of a flow $X.XX million. and generated working we cash operations largely in represents billion same year, $XXX of quarter, cash due cash This

performance this year. rest continue We the to throughout expect of the

our the of materially in result, flow higher than a cash half free first year the half. will As the be second

$XX.X investments CapEx inclusive billion, data, in APS $XXX Our were same the net debt million investments, and exploration $XXX to is reduced lower than last Capital million approximately second sequentially period which projects in quarter. of year. and million the $XXX

be the approximately still For $X.X we are to full-year, billion. investments to capital expecting billion $X.X

We and X.X the $XXX continued million during shares total purchase our for repurchased quarter stock buyback price a program million. of

dividends to to continue buybacks. We year and to stock shareholders between this target $X return billion our

to back call now the turn will I Olivier. conference

you, the your open Stephane. we are and Thank Ladies gentlemen, I to ready believe to questions. floor

Instructions] ahead. line from Evercore Our will Please question go Thank the first ISI. James of come with [Operator West you.

Hey. Good morning, Olivier, Stephane.

James. morning, Good

morning. Good

So together Stephane we've and last time – the I of and Olivier, in a especially, spent you lot XX months.

go we thinking duration cycle? if York as customers, back bullish programs to increasingly, the meet you're Day think spending their bullish made years? I you are [indiscernible] what about City the on major but aspect and saying they if events. what three recent And next comments – the and cycle especially. their world, expectations? the then with all their more customers, you could around your Analyst broadly several customers, the Saudi, over cycle's how the in they duration upstream Let's You you wonder to of and drilling become your talking around the see some us are on I your now obviously of about with are to We've travel comment duration you New pretty

No, very good question, James.

may you durability. to resilience this. durability. the realized as And there that three are further and or And we bit recently, think two a cycle have characterized on little me I elements comment breadth, let

offshore. land than we the did offshore comment it count and last flag have second seen increase. of of offshore to return the offshore the materializing count where And we think, obviously, higher half, in international this for the be to and the months two the in first think call I I XX actually, accelerating. And rig rig the will resurgence on return

of economics the Accessibility for Also, this of most of momentum geologic vast the resource now FID and FID. is low hence measure is and by carbon gas. $XX where below assets FID and the are driven the offshore – is favorably So assets. both nature the the of oil positioned the

not that also the we significant the or East into independent is and NOC IOCs a see that only of placed but have see this FID, So having you North bet very across Brazil a is offshore Middle from resurgence the that translating on as offshore, capturing and a pipeline it opportunity, can to Sea.

scale. develop. the appraisal find many leg So Exploration sort driven of many appraisal. by we There is next of happening is of offshore licensing rounds see lot are FID reserve and exploration at the expansion happening, in happening also rounds second see future this this exploration countries. emergence We to and a appraisal of happening and

in can to see, there is offshore So only the second XXXX, with or but stay leg we beyond and as and not XXXX materializing.

barrels made Middle the in blue Beyond X NG expansion products well that, both obviously, East capacity for has in some in million consumption, a significant commitment of as generating or ammonia for as gas halogen regional blue export of so energy oil Qatar, and or or for oil particularly. expanding further displacing

capital set from vast are the second expansion half some we the capacity expansion record XXXX So leading is have of this and the stop to, East onward, a or XXXX been the of target. as as for not of Middle level investment is quoting of the XXXX decade majority to year this in again towards

being and years. a the as and visits resurgence So have duration lately to of and to we actually offshore right, year-ago seen being and East believed, the is capacity characterizing of the solid had the combination to we Middle a next what is beyond have that we extending were feedback very is a expansion with cycle be prolonging three the the

And makes Okay. – That maybe follow-up. sense. then a a lot of the

looks long appears or think I I duration think this, to go we be we cycle. to agree be revenue on as guess, As through you think a – about as and quality we about, what and

for the of and key kind that or base customer. looking by the the metrics highest But you customers are highest of assuming are upgrade main by either to can drivers there? of put what choosing of what you're you assumptions return are have in that quality revenue now? you offshore about that the margin? revenue How that key thinking over onshore You quality place And or

No, absolutely.

the and years strategy to favoring character that's back. we have of the the a we strategy our sort initiating that accelerating focused not I been getting we think get get only returns as think few opportunity cycle I higher more And or transition that appraisal, digital, – and technology, bit favorable technology but included FIT a to a including premium combining offshore including also mix the quality. a technology exploration East including to adoption, revenue higher give are Middle all a

a will the the high put capital capital initiated not you best is I margins pushing guide returns, discipline strategy move that on forward. the investment But threshold part we as to also contract capital we sure forget also that to capital forward, get going have for clear the and of and this higher deployed to that return higher strategy and we us make as

combination, we us technology of So trends with capital execute scale revenue as mix, drive in quality secular have high we the digital create post have at will allowing and our margin as to some to we every we adoption to and the And margin favorable forward. grading on the I the and and said, are seen strategy have portfolio to expansion. the that discipline line this increasing, business move every used improvement the we continue expansion

so Olivier. much, Thanks

Thank you, James.

Anderson David from is with question next ahead. Please Barclays. go Our

are Great. Good you? Olivier. Thank morning, you. How

morning, Dave. Good

a contract? that was what Middle directional and East drove was growth see Middle impressive mentioned to a starting types you're of those in release. other and discrete I drilling the contracts higher know also, on markets, Saudi pricing contract in projects you you that on now? Asia talk wondering during East of Was if really showed the bit So quarter. that. a ramp-up the curious of I a reflection sequential could I just the Was about steady

East many been as area in things. that that I call are three and be I But very particularly them, have than are that – stay the indeed, – XX% basket we again, growth in as of several year-on-year commented, and from very them benefiting GCC there we broad we we think basket across. and think, Asia, to Middle significant from term, to Middle XX% the sequential say it's Well, in year-on-year more East, the region are growth benefiting and GeoUnits,

benefiting considering expansion into exposure. and that the are program that activity benefit have into been from you spend an have from We market inflection turned capacity our initiated that reactivity

you renewing contract strengthening and on – We our position. And have integrated we service increments year. gaining based seen contract. say, have increase capacity, say, made. expansion and have includes we believe announcements of on our service And encroaching to rest been contracts sequentially that would from several revenue or more for pricing continuum and result performance the and than, I from, performance several I benefiting market be have And reactivity would been either this finally, based combining combined pricing on service all incremental contract will into an the all the that year-on-year market expansion,

And show been but seeing – D&I how if really is you. if digital the sure to can of way provide explain any interested are digital Thank of I'm just adoption or in any trending? or business any kind of trending? non-APS the you your terms not of how they've segment. some some a over to Okay. customers your this metrics there kind that kind digital particularly year us us to it could what of curious using Could and of I'm Is versus provide kind and on kind you're businesses of of kind ago. of of year in how kind examples, adoption I kind solutions shift customers. the color of you

Yes.

masked digital of are I think and declining. that we or reporting a in flat have. growth think results is saying, the digital keep having I by today our EPS financial some business as we year-on-year the bit we success

have on division. think this I look overall So at to the first it financial you of result

the are exposed happening I the that as under in we solutions to scalable enhance capturing computing, this we described such remarks out are industry, I access cloud asset in on and Secondly, and accelerating secular the would of Delfi productivity exploration in say cloud that are from the that one to asset that and digital there trends my of of making trend prepared are elastic that all them best computing gives, industry, of computing transformation development. as team that computing, cloud three

We are it. seeing

Petrobras of team results and category and You that have the in for square development geoscience award seen the accelerate asset of capability of that using productivity is quality enable the into the announcement team. cloud to

expansion seen So or that's one year-on-year. XX% have measure by which it growth my at adoption prepared either we a sector. users, of quoted again, customers' And in are number we remarks of

amount stores AI. and manipulates the is second try data unstructured you to that to and vast aspect of our manage this if like, The unlock data, structured unlocking democratize, data, industry data

into our and So AI cloud-based has this we it, are and help Delfi day it to capability. use fortunate to access capability solution, have get unlock a every to customers AI we that domain embedded

Innovation We deployed. Factory, have XXX at solutions done

the that's that that's engine AI like, are second for transformation XX% and So our And data of data of if about capability. structure, digital growing offering. above is at you digital speaking subsegment again, growth, the we

device, to cloud at use it at AI it call our automation and of the the of to And consume assets pump construction some give performance. not the some untapped edge digital to potential on in growth or that the last, is everywhere has why or well That's we maybe the embedded assets that – cloud assets. we the the enhance most drilling optimize our and Agora in from across either run solution, in the it to And we that offering the have Edge we operation. element trip the edge at APS surveillance which need and deploy these asset and producing assets deploy and do that's to industry, one

trend using we all the efficiency, the and different a to factor in long be productivity long adoption pace, trend. low So tail a have across our will carbon it all same growth this growing be independent extract of at that time. of continue a the durability secular industry to of will benefit the And a clearly seeing all NOC, the we different They're these IOCs. are at

that's technology So where have to and multiple we a that customers horizons. what with across footprint the And allows we long run. engines of different for most in see, tap growth multiple into X,XXX leadership us

JPMorgan on line Arun Jayaram We move will the Chase. to go go Please of ahead ahead. and with

Good Yes. offshore. on first morning, is question Olivier. My

call of oil now how which FIDs at we or underpinned global XX% kind we offshore can what prior by is it, of offshore prices are justify bit developments, highlighted needed, call You've you some cycle? oil give below to thought $XX deepwater. particularly where mid-XXs prior it, price the in below than I thoughts lower cycle was a is saw you wondering driving, if saw what the we that on breakevens quite

there be obviously digital. curve integration, de-risk cycle that. would to I large the at large overall at on has progress shifting to the drilling compressing think technology, to efficiency, to cycle and aspects left is that subsea more performance several made industry the on in development the the are getting is One the

the performance deliver large service lower assets. and So cost, development those technology, to total the industry integration, faster at the the of helped has operator deliver to and

assets and geological is have would I a say, recovery would place better and carbon better more that emerged favorably also I the primed play of and has and exploration and/or, been potential, been high lower prioritized element, production our quality by have customers. a the quality And creating then second The of that high-graded. can the resource, the then been portfolio think that of have

best have the advantageous So on it basins from most and and the these seen they assets East Vienna, seeing focus advantageous of the assets the gas most choice we in and to Brazil as the and well. are as customers we Middle have or some geological

and opinion is, called that the or – existing – platform, average is make existing think, think, which this called I past third, a of that's significant investment the returns development, the have lowering from of exploration and trend infrastructure-led return oil tieback and capability to oil from a in development seen is development, another cost on in in getting is infrastructure. an infrastructure-led than and infill this gas infrastructure-led chemical better is expand additional because significant lower infrastructure-led and increment infill we on pool the is and exploration, – or So ILX, and Hence, improvement platform, from existing the hubs cost existing gas. our into tieback I in what for FID that increase dimension it accelerating chemical on

better you and for higher all are better getting combine sustained of hence, the economics, durability offshore and you So this long-term play. and

Thanks a been Great. means for was few a expand on if follow-up, on that. regarding website wondering just questions you getting I we've buy-side for Russia. go-forward what update on your just could And this on the Olivier, a basis SLB.

will made Simply quarter Russia remaining the financial I have Friday revenue that our SEB not think balances. decision X% last Russia revenue consolidated our represented of to second facility we approximately said, impact in the and halt shipment to from all

on ensure what had in the we and from all ban international as that States, into the United sanctions. our previous to have Canada location you decision continue shipments will the exceeds So and our we presence Russia, seen in EU, and that meets this Russia, remaining U.K.

Thanks lot. Great. a

you. Thank

go will to Scott apologize, of the with I Please Citigroup. Gruber back go ahead. line we And

morning. Good Yes.

morning, Good Scott.

off you've margins past, in of about back we type margin But second into And think with expect high D&I more then snap build Yes. growth XXs, push you XQ the could half, especially margins those a given the XQ? and XXXX and talked APS to that some think grind terms in importantly, D&I as you XQ. about we headwinds least nicely mid-XXs Should the digital higher business, can thinking of the about hopefully XX%? all D&I near in the as at term. And in abating?

here. Stephane Scott. Hey,

D&I the of terms somehow the up QX for revenue. like in seen APS from seasonal So this and almost clarification, you've expectedly because yes, and we digital flat in coming to after the margins ended is returning low mid-XXs entirely just levels

really entire is QX expansion So QX good the to is from margin digital, which news.

goal So the cetera, up post for few you exceptional a sales like on than potentially, have depending down data, a you always XX%. good exploration, have – higher certain but mid-XXs can Yes, up it sales. with percentages et can us and go is

that should in still about well? And XXXX we as think

the explained, Yes. dimension think trajectory slow as to in digital Through and we it future our XXXX I think multiple down digital because set success, I and is in of not we are see I expect concurrently to shaping contribution the the and more the the on – the and growth more long-term, time, accretive, beyond as more say, will and on well more accretive we continue digital I the accretive actually, be over and cycle, it, call into would trends margins. of

just in on then count being one helping Are growth go XQ seeing the is that America. Pretty fit-for-basin contrast impressive strategy? continued with you in rig Gulf Got rig North revenues – in down. Obviously, ahead. guys. it. the count up quick also Mexico to Yes, a of and And you performance

Absolutely.

that's call ourselves America to and Fit think agility what of the I been North the on shield land the some part strategy of in we has macro trends. helping

of America to or think to I in pressure continue buffer us pumping augmented, seen have the believe progress lack North construction and been has expose we activity to offshore, of America to mix exposure revenue scale well the actually resilient complemented us by and we progression. then performance land may, I other fit-for-basin that strategy, decline some at has to technology the partly and the if North activity in and allowed that where

Got it. color. all I the appreciate

back. it put Let's

Thank you.

with go go we Please to Benchmark. Kurt of the ahead. line Hallead Next,

everybody. Good Thank afternoon, you. Hey.

Hey, Kurt.

Good afternoon, Kurt.

free flow a the cash number put in guys So impressive you quarter. really up

obviously the indicated in the dynamics cash would half that year. second improve free of You flow

continue $X billion itself. level just free go that cash? free you where of quarter this fourth kind curious, that though, can Is this that sustainable flow as cash of harvest kind the cash now you So of something of be the And could is close is flow in I'm the to quarter and think dynamic year? to of third you into

So look, you I of performance yes, earnings, – working improved of cash capital the and are in seasonality as the some flow free quite pleased cash there It's our we also with said, quite in top mostly on course. capital. know, second it's the quarter. working as is flow And

as beat a quarterly strong QX DSO efficiency second a with record our a So we QX. a improved for again inventory on quite bit seasonally our out came low quarter, well. quite and We of

well for sets it year. So the us the rest of quite

said, in half. the more cash always you we second As generate quite

a we where slightly good But wanted way from continue So the for and ahead we think can we'll to $X it level QX, point be, for of QX, is starting I there. take are billion we and second half. the that

follow-up, All a Olivier, my great. lot the fantastic. And contract so right. awards That's during quarter. of That's

in a date with It's company point offshore on emphasis for the driller on kind does sometime in Maybe a connect for outside long-term contract discussed easy at of what on little in to what dots and the at projects. these their those number more kind look on look You of a start goes an projects. us bit future. how at and to time a service company the challenging slotted to of those get service visibility

And you benefit understanding in get guys point coming in drilling conviction just everybody conviction offshore So call where the we gives can the can time have visibility that legs an does seen example? for called the think may this to than the is do investor longer and that on and convey what Schlumberger what I how is wondering base from. and At project, and what the for cycle that into past? was you the of different understanding you really your has

and to mobilize beyond being capacity year we durability the support years typical and secondly, I we and see – recent you we beyond this think see to very that it's would see XXXX this seven highlighted a contract commit start contracts, is in April this multiple and of some across terms half. to we'll It's award contract and continue contract years, resource every a the used framework mix our that And in three to think next mid that we duration have that are five of years go I this I contract announcing many that well five Subsea second think either years July. a thesis you the Hence, few and more they year. say of mix. have that of than or start or and award, them seen duration, decade, I you were also have long it's and a No,

business. booking system, for production our side our quoted We which is of cycle the total long

supporting of the you seen, many or two of in are as a Americas have have contract you Turkey. Middle contract, seen have have bookings to that service or in then different of as I you – Subsea, three you you of bit the the in large seven Qatar, contract that So seen have East them offshore, have the that delivery, years parts and years, and was referring Subsea three, bit and or five, then bookings than some surface or in in

typically long-cycle this exit this fuel and is $XX years to full-year And the pollution we two years booking least billion represent growth And are going billion have been business. at for to quoting X.X this forward this, as confident on XXXX, booking, have system, X.X ratio. two will of out of book-to-bill three $XX or we and we we'll in our to

you and of and on international, get offshore many Middle these elements East markets. combine you duration So of the

appreciate Really the great. you. color. That's Thank

welcome. You're

Thank you.

Our next Sachs. come with question will Goldman Mehta ahead. go Please Neil from

team. Yes. Good morning,

Neil. Hi,

Good morning.

The first good systems. Margins production around just question there. really is were

which you can source trajectory? So commentary And around about about tie have of you how we been margin the that any think has should into momentum? also a subsea, the talk

Yes.

year said I we which and constraints flagged, we'll is we equipment said, margin logistics core this and I an think as will this product some production division on will system and is, the the on expansion starting be equipment that that behind materialize. to us, momentum suffered and constraint cycle had be from is long have soon what other last we [indiscernible] have in that supply as feel matching seen comfortable at as mostly we the we

not this Our ambition is at margin. stopping

to Our FPSO. for or line believe with to we surface this have subsea efficiency, across we grow some artificial unique deploying expand completion from manufacturing into cycle continue ambition this that as that offshore lift the from in including long-term core pricing long and we to and is to environment efficiency, technology are operating the overall division some equipment process

will I us and will the All of continue would that to say, stop this not trajectory grow. margin of combine this here confidence to give expansion the,

booking about It's expansion booking, this. journey I a heard and margin forward. have the PS for on commenting You going was

ago, customer if terms you each had around we different kind you about of you lot on just seeing of Olivier, basins time go agnostic, the in saw activity? Wonder a and the and in visiting And when of just of lot world what of a are road name conversations, spent other a customers of couple weeks obviously, terms in regions. can different talk

to want obviously. don't I too be specific,

will general think I sentiment. I reflect the more on

of and at have. this many volume expansion accelerate and sure investment, all reaffirming that for their decision the think production maximize oil sentiment we their they XXXX engagement opportunity production. the strategy favorable the have is and are and to still will and we very as seen you make or major, in see their I transition that either their general is industry resilient gas capacity outlook adjusting sustain the seen as to energy dominate and mean And the foremost, first economics seen the and security large it the

pursuing performance, and security lift addressing their they or built then the enhancement either see Asia, then production through things, the We Asia. – to continue typically. in sure Africa, everywhere, make development, production East in to two the in And this energy Americas, their their Middle gas security NOCs partly

reverting focused cycle, and their of gas supply they their maximize assets, that oil the participation and cycle pool are the production pool international and/or fairly of So participation on their some declining make to the to the customers to trends developing the sure happening. expanding is –

So it's broad.

that across that more expanding the time in this geology attract, globe new our during new or deepwater, will I territories are exploration seeing FID. commented think I we into are I and investment. future right, into also the are This will many as in together, countries, commented attract And newcomers are rounds if that

security, So and the sustain it's, the IOC's commitment towards driven pool by to general, their in decade. of energy end supply international position

Thank so much.

you. Thank

a go question we next, go Lemoine. And Please ahead. to Luke from

Hey. Good morning.

morning. Good

enterprise-wide you Good with or with majors for Delfi about kind for morning. opportunity for maybe deployment across Olivier, can organization, of if Delfi contract NOCs seeing five-year contracts the talk of impressive there? Petrobras a interest the additional level and other award with the

some geoscience of the for some do speak ground work of of transition that fairly a for there of I of either typically any customers the and further to customers. for prepare our the operation adoption cloud drilling Delfi But to or prepare continue ahead existing for Yes. doing and solution, not penetration was their AI public or are as for advanced discussion to to are of yes, workflow on announcements, data. the adoption unlocking referring several We we with

three highlighting. you are that a will you continue yes, see trends So quarter And we different I that will this. dimension to and every different, come seeing see in was new announcement – the the

of And as was you many well their reflect hopefully, very first deployment the looking success enterprise replicate with us. Chevron, with and large large have had the company to to materializing are using in some the who future, will towards see contract that that future we we they opportunity

and run. and and time, and the with cycle be take will long again, will progress. at it's a one at accretive years long happening pleased a that's journey the will it's for it be scale are we So But customer long and

Olivier. Thanks, it. Got Okay.

Thank you

And our go Capital next with MacKey Please Markets. question Keith is RBC from ahead.

Hi. Good morning. everyone. afternoon, Good

Good morning, Keith.

in be Subsea us key of Production an Just or Systems the way forward, in any that just Aker Maybe wanted might at to on you give to relation And going you numbers month. ask impact the numbers with to helpful. remind transaction? first the the on of you would to expected where the X segment update us close you of are report if next and subsea originally closing. JV expect the end benefits Can the

Yes.

that is is think that regulatory which progressed two I we the made to quoted of we to JV months the have is this towards the majority in time QX year, this from have we we expected – First, progress move forward. antitrust now. the what by approval we announced we at obtaining The close

and timing progress the as soon have materiality on you give as our future the of in with to and we this be will and the materiality We partners conjunction our as consolidate. communicating can we planning in this we'll

time will be give be will about give and and will it we we will PS forward the announced, announce revenue and way the when information it. the clarity going we report closing, will the Now we'll detailed consolidated into that the it you the into on at

and the for progress the progress good across the jurisdiction different planning good to prepare good as well. on progress, So very closing

we're optimistic the future. towards So near

buyback. Appreciate the question one final just the on Stephane, And you. comments. Thank for

from that significant is to the for the models? our is second rate number deviation flow set expect half Or to half in put $XXX you've year? any we in cash good the a year, free still of first should run the the increase set As of million-or-so

commitment at Look, Keith, return and you to really a $X shareholders look dividends it, buybacks. billion to have on our of it's is the way between total to and

the you yes, So, continue, quarter average half, you in of get or the buyback yes, course. of math, will second the will in sorry. second level do – it if the But

Perfect. much. Thanks very

turn SLB now back the all closing And have we time the the ladies leadership to that I for for is and gentlemen, conference questions. will comments.

our we second to our and clearly fit you, Leah. the First, quarter leave Thank you leadership technology performance. demonstrate, will for position, would takeaways: following and with financial the market differentiation, Ladies and continue are conclude results today’s as like cycle call, performance I drive to gentlemen, as our

for the markets, offshore the growth Second, as a and years outperformance lay strong will upstream ahead. ongoing these our international investments and accelerate foundation lead regions in in

of significant solid our a following confidence half full-year into our the reaffirm financial year, with half first second visibility and the Third, targets. we in

not This compelling backdrop commitment our disciplined, could to and a and company, to before. for our is returns-focused, a execute are for shareholder returns. efficient than We we ever better more environment today ask

and the our very strong trust for to delivering business. team fully our remain continue confident I performance SLB strategy in

all this, for you With call. conclude Thank joining. I today’s will

Ladies today. and Thank for that does conference you participation. gentlemen, your your conclude for

may You now disconnect.