Schlumberger Limited (SLB) 19 Jan 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the SLB earnings conference call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to the Senior Vice President of Investor Relations and Industry Affairs, James R. McDonald. Please go ahead.

Leah. you, Thank week. welcome Year and hosted SOB Quarter earlier Fourth Houston, Good Earnings to Conference Full this held meeting XXXX our being Call. Today's and following morning, board the call from is

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

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

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

our website. With most Olivier. is and to the fourth comparable that, details press in reconciliation directly on turn release, to I which over financial the call measures will our GAAP Additional quarter can found be

fourth my results, call Thank I will and on questions. you, James. achievements Ladies on our we'll the and thank ambitions. detail the financial XXXX our you us of provide and prepared remarks, a then joining number for quarter for full will Stephane our thoughts today. In share gentlemen, discuss highlight line your the financial results on our open outlook and for and more year

fourth results. cycle was high quarter. and Let's We begin. margins and the The to and financial conclusion achieved we quarter flows grew an sequentially the year's impressive year-on-year, revenue both cash during

on fourth seen marking the on continued We've well end and Africa, the expansions Europe East technologies activities. Specific and appraisal Aker growth witnessed by production offshore from international in delivered X the by fourth from supported strong entire fueled delivered joint investments additions. us new with front, team, to very international flow while This and during offshore was grew future. The portfolio revenue and billion the and presenting to and of Asia benefit for developments, to robust performance our shift and capacity are long-cycle into opportunities our also where the is offshore, the I and a exploration a XXth Throughout double-digit growth customers and harness driving joined and and venture. On legacy international year, subsea cash very digital acquired revenue quarter. further we continue the the as year-on-year our X and the efficiency. growth year strong investment year, in would of highs, subsea performance of focused thanks markets, $X.X quarter results. Executing capacity markets Middle sales already my enhanced Our we of months ago strong note, in by business. free quarter margins and accelerated in driven quarter year, integration we today and have this contributed has to consecutive to like subsea who cycle have Aker strong extend digital exceptional operational we we new our in planning and international reached was the

in our Next, the for for growth on and ambitions, full full by reflect adjusted We year revenue let achieving year. financial revenue target surpassing me fulfilled EBITDA growing our the mid-XXs. XX%, our accomplishments growth year the

new and Angola Notably, activity by almost grew was technology Middle XX% than reserve XXXX. operating construction, and the by driven revenue in our U.S. free us sales. from enabled the certain contribution expand offshore, business, the product This led by Gulf and acquired we internationally we In growth Egypt very which East revenue its markets, margins achieved Aker strong Brazil points. and deployments highest in Guyana, and basis This Emirates, East, Mexico, Additionally, since impressive [Indiscernible]. Offshore subsea in more by the and positive and growth Arab also and performance United we XXX continued increases in expanded Saudi Norway. strong ever pretax flow, Australia. by solid the momentum to highest by supported led well mainly in across was generated $X and of billion our systems, in Arabia, the in core, Norway cash production remarkable

data and our enhance the drilling Additionally, generated more count. In as growth work X,XXX to customer North AI revenue fit-for-basin autonomous hours, adoption users data value have efficiency workloads than the now differentiated continued XXX of representing continue and more resulting solutions. and million indicating complete outperforming XX% and returns rig to connected our to business witness we DELFI model in both deliver have digital, year-on-year. our America, AI digital by We growth and platform than

a a As cloud, full more achieved year we new digital since than and of of growing $X at CAGR of with our comprised AI technology XXXX. billion result, revenue edge platforms XX%

for technology New and forge investments storage. new partnerships made common energy, we new in capture capture and

space. momentum actively than this we we're very And globally. seeing more of are in are million -- in tenders We positive CCS participating $XXX also

are carbon Europe Gera government heating and zero-carbon on the and geo-energy, Middle agency solutions. cooling electricity in partnering Additionally, East in we [ Terminal in ] with on lower

As we our engines X growth. advance of

we lowest also recordable continue through We growing performance and record. and surveys, level reflected and reliability rate stakeholders is in of This for where also satisfaction industry customer achieving value our deliver are injury customers to creation. operational by and highest our

Scope intensity achieving the emissions to Finally, we commitment. XXXX reduced our reduction on path X, our emission and X X across

entire delivering growth thank are to we results. CBT further positioned want and the forward impressive strong capture forward, on I Moving building look this to this to in ahead. I for success well the year

plays. led markets, have offshore In East, be continue commit production taking oil the macro. Saudi this than United Middle place Arabia commercial investment both to resource by and imperative global The and of East, by in the growth capacity significant momentum supported the year to meet durability a in continue led investments on and the countries This which defined breadth, basins, in Australia. and will in remain increase Arab security resilience Emirates, Iraq Middle new more ongoing fully international demand the international followed growth China, energy Malaysia gas total place. development. belief by and demand, continue that gas, in of After set in And longevity we anticipate the to to are continues Kuwait. XXXX, further our and and be tactics of investment by sake. In growth exploration Meanwhile, across strong to [Indiscernible] cycle we of in and such Brazil leading confirming by Africa Asia, and and followed the XXXX cycle. West as growth support X/X Indonesia anticipate the to our India of and we that is to activity multi rising with Turning gas

activity, significant portion of place baseload wide this across is offshore. a taking Looking

expenditure our continue capital in Our momentum XXXX. growth will

FID XXXX, Middle escalation. potential although As in supporting XXXX any further responding in for XXXX, FIDs strong several a outlook both not and result, the and to to global in rise, to in count we years in $XXX a underscoring the the very this and of expect East In strength come. billion for in offshore regions, do shallow to rig in Asia, see All tensions absent and context, persist geopolitical mainly a the will significant more deepwater. impact activity subsea favorable enduring markets both than offshore pipeline continue the we all,

to America, the few Middle resilience a we discipline long remain last increase in activity year. ARPU investment noticeable be fluctuate following technology minimum have vision and of East, Consequently, witnessed operators adoption This gas price capital anticipate although continue. recovery short-term short-term XXXX exit North the on markets sustaining focused to decoupled levels offshore Additionally, will rates will past in drive months, from to these sustained cycle efficiency markets. In from of improve in aim as at over we the of the we XXXX, part further which -- investment commodity with record of minimal activity further as continue rates. and the later moderation pricing, support

from we with $X.X year enters Europe led venture, and East in place markets, will the This Now Middle offshore the and by to both production joint to performance growth billion Asia newly XXXX. of our backlog. subsea growth year expect reaching mid-teens, factors OneSubsea expect drive explain how and let revenue the full In which these offshore and international we benefiting our with system Africa. the close take onshore formed me

$X additional bookings in deliver open billion more in than subsea expect market We of more as year-on-year continues to than the increase XXXX, to XX% expect.

of in double-digit land moderated, digits, we Mexico. U.S. clarity, contribution excluding although and driven year. leverage expect impact of the Russia, decline Gulf North growth the reaching by growth For expect international full we the for Meanwhile, expected portfolio and the U.S. year America, has the revenue mid-single technology activity both Aker in in our and when

divisions. Turning to the

are to in earnings, announce Board our we'll performance. profitability our We also expect dividend. primarily with grow platforms, increase new and XX% that an led $X.X to expected driven all teens, XXXX. APS internationally, pleased Digital in return our flat. targeting while of have technology more And we service than confidence also more EBITDA production is high divisions core in repurchase systems will XX% the growth in growing in the shareholders long-term compared increase and and to integration digital margin Directors Directionally, increased of in pricing are outlook, by a grow XXXX. increase by to tight in the XXXX, approved a than Combined, the capacity return With by in expect program quarterly media. share growth cash to remains adoption. result expansion we we to year-on-year technology This to generate driven billion [Indiscernible] continued further

Looking the year-end with the to anticipate effects the and absence the pattern of first activity sales. combined digital quarter. of of We beginning typical seasonality

in revenue of the be to quarter call markets. low rebound This further the for will in basis, This turn ambition particularly in we by the the year, the growth and of the will year mid-teens. earnings acceleration EBITDA growth followed growth. I second set international and first on second a expect the support have full result, now revenue a growth the will over in Stephane. we As quarter the in teens an half and year-on-year activity

peso an of related of integration $X.XX We the associated Argentina Aker of the additional and will and acquisition to the continue period compared of gentlemen. credits you, incur morning, year, the with to and charges earnings we at sequentially We charges as closed which over the when year. fourth beginning business, and and excluding the $X.XX course the This same and that during Olivier, $X.XX. Fourth integration this per of was merger charges ladies of quarter. increase XXXX. $X.XX the last quarter an Thank subsea related costs $X.XX remaining anticipate the activities in our of recorded devaluation to quarter good of of represents $X.XX increase share,

EUR XX.X of revenue XXXX million grew year XX% full Our year-on-year.

is revenue roughly pre-pandemic as this While of the XXXX. level the same

EBITDA higher. Our was in dollars XXXX in adjusted absolute XX%

As XX.X% leverage a position, result, improved favorable points our a of XXX This quarter few revenue high and similar full X% this the our last internationally offshore. Fourth operating market years has year of expanded our $X.XX margin over base. grading revenue sequentially. portfolio of highlights period and billion EBITDA the our particularly XXXX on significantly over basis increased

and Fourth X% revenue each XX.X% of all led business the integration was This With digital Aker same year. I expanding North Middle by the operating margin revenue mainly Subsea margin last was and for primarily due level in When grew East from flat margin of Africa. Pretax basis internationally international was driven Africa. XX to offset X% count. digital XX% fourth higher increase. increased period points sequentially Asia sequentially margin of XXX revenue of the million a improved points with Middle now increased lower billion growth $X XX.X%, will the basis basis was construction sequentially, revenue EUR the XX%. East for operating quarter operating and quarter the and basis representing performance Reservoir areas, $X.X increased Europe pretax quarter fourth due XX.X% essentially to to results XX go than activity the operating as division. activity of growth Pretax by for pricing. EBITDA cycle and America of by quarter is and higher of X.X rig resulting approximately margin across basis through of sequentially, highest points U.S. billion Fourth accounting revenue points basis land of sequentially. points and XXX year-on-year. Adjusted to acquired increased XX improved of XX points in the decline X% this pretax

$X.X revenue subsea billion Lastly, Production largely Systems increased due acquired XX% to business. sequentially, of Aker the

cycle Excluding points this X% and higher operating systems. on grew XXX highest artificial due sales. lift subsea strong basis expanded to effect, its revenue sequentially production level margin XX%, midstream, sales Pretax to international of

XXXX. year the Looking ahead full to of

pricing core, geographic level driven in at will the our remain We mix to APS margin favorable amortization continued Integration operating to Digital the higher expect technology adjusted will margins margins decrease leverage, Division, a approximately strong digital In expansion XXXX mid-teens continued and result as will by and margins XXXX. mentioned increase to compared and due all, by All sustained we margin as as when expenses. accelerated result of expect in our our same as adoption platforms, in expansion while XXXX EBITDA in growth the new of revenue growth a year-on-year in Olivier, tailwinds.

we a free $X.X advances the level from XXXX. strong flow our Now collections, increased cash receivable and fourth We of turns inventory turning very improved cash This have resulted full $X liquidity. performance year since the operations of of year-end flow and return. of quarter. generated of billion, exceptional prior to billion during year flow highest $X cash the billion free due is combination achieved This customer receipt the to tax was cash which in

of data lowest of net for APS by and and billion $X.X this during were cash the in year. free level since exploration including full This quarter million result quarter net billion our reduced we in a and $X the $XXX CapEx the to debt our flow billion. the exceptional represents fourth investments debt projects $X.X performance, quarter first XXXX. Capital investments, As

XXXX our capital it we at the capital will ahead, level as continue investments revenue the approximately our disciplined to same continued remain Looking growth will to in XXXX. Despite as investments. be relates

fourth the million. repurchased for $XXX quarter, stock during million of our we Finally, total price purchase X.X shares of a

shareholders billion form and For of the the full repurchases. $X to of dividends year, we returned a total in stock

we repurchases, the returns continued targeting another flow billion conference that turn confidence dividend we cash that $X.X Our discipline, shareholders year combining announced back today, this be more share of to regard, us XXXX the with In XXXX. I in enable capital our increased than in strong to shareholders will combined now XXXX. our increased quarterly return to we will with call have are generation to Olivier. to the increase when will

I we will Thank the and you, think Ladies Stephane. gentlemen, start Q&A.

So Leah, back you. to

go we ISI. West first, line the Evercore And of Instructions] [Operator to James with

So an in that it that the to Olivier, a to right Clearly, your soon lot higher start deepwater rate me second very pretty it's particularly EBITDA of we and to that's -- looking in another revenue. like particularly than But into the and strong curious and rigs growth here turning growth are you're hear half, for there got exit type to go thoughts. seems as year should even be 'XX. of going we've of

a think kind as and that ahead overall I the step year the of through is I skews period? terms 'XX, in to getting or this get here is 'XX be fair market am of what of going into opportunity my assumption, we

correct. that's No,

laying for James think, you out. thank I --

of of total deepwater increase and And offshore, deepwater of of recount, activity activity Asia think really grown rate and to and [Indiscernible] all last benefit. in in terms 'XX more and rig a both East for as total continue moderate includes shallow rig of albeit basins. distinct offshore addition already count, we months. as to by rate across anticipate, that at be terms the cycle this Middle XX coming beyond deepwater exit region a offshore above we deepwater delivered the of theme count, The and in to the both shallow. attribute I XXXX see rigs driven a in have to think, the of continue Shallow that and I visible mainly offshore is visibly the

supporting deepwater, I benefit. is with and of activity running FID not have paying 'XX not the we beyond, this activity but scale million keep as said, the investment the only and growth, think only 'XX, benefit and 'XX we see but longevity the where of our subs offshore of offshore venture and total 'XX, offshore to and will out year support beyond. I next each $XXX both Hence, for 'XX, to continue in

on now. -- above are in we rate remain very XX we last the December be exit we environment. And to from see the yes, So constructive that months

hear. Perfect. of -- but one, I don't CapEx know then there's it seems CapEx. been, it That's at of this And in a going take -- if Stephane, a to like lot quick of level more terms okay. great maybe a to you're Okay, going keep lot you be same follow-up in seems to 'XX, to be the but if, want activity. it's type wasn't that that to

does, to you can higher? CapEx do that does you this of it when X% that it need And maintain ratio. eventually dollars move so X% revenue And to does, believe if still for number

James, adequate and still So we level we as this yes, into spent CapEx for in But well. of year beyond. in 'XX going look we 'XX, are growing remains think this

activities You mix have the amongst well to divisions. our think about as of

So to we very envelope actually were year. expected. upcoming growth with we low side. this, guidance, growth than throughout of increase we guidance well remain address more we our Unless and without indeed our the the the our having CapEx on normally within this comfortable much within and the think can the it's end But will is

with from David is Anderson Barclays. question next Our

can maybe Middle with I the East start So off here.

runway years is shock question further that noted capacity [Indiscernible]. between available, due start of contracts is And the growth by rigs of versus in pace sequential in of months. close double-digit next should or service I we see wondering 'XX, equipment, we reprice line to quarter conversely, unconventional activity My margins the another on tight this you evolving? top the sticker of are So terms how clearly, I of maybe of maintain expand projects margins as number to of Can and delayed the capacity EMEA, gas there's number the you tendering in here there? region expansion [Indiscernible] pricing. was guess, enormous an front underway. seeing you several I'm X capacity from over in pretty the E&C getting some

but So little bit of Middle already in perhaps the in a just East, please. pricing underway, is more details and terms capacity

you, Dave. Thank Yes.

way in we activity been on In with turn XX our the I able particularly in benefiting pleased growth XX months. last strength very we the last the revenue, activity the months, the think East. ground this to and been from have into the Middle have

I a commercial dual and the the activity. beyond further growth. be characterize derive its for further the not is almost and benefit think will the on from this, gas, very would in it's capacity I It's see East broad. country leading which activity expansion every that we activity region in characterize to I also Middle country will X revenue

[Indiscernible] So we and an rate of every growth capacity. customers integration to the from for for activity. delivering capability technology hence our of performance our harness our potential not don't into and company the region from technology inflection in higher our at We position are region, revenue national see with of the market down benefiting revenue part in

the consequence, expanded have what expansion region our XX capacity, seen When a in margins our as are have for driver internationally. months. year-on-year equipment margin responding comes have our disciplined been margin capacity confident. And last And we it pricing yes, have been and expansion supported So in you has the from to hence, in benefiting international and we everybody the and as been a region. have

But investment execute long on as continue we We a pricing the again, nature expect duration of from it's the short-term both commodities. this by decoupled cycle, XXXX. to

first 'XX to our and to integration, into this the of continue second success our half then remain confident again, and ability 'XX market the position in we well and So and decade. performance, about and the differentiate outlook technology market very

your there regarding clear, about from existing customers next a Yes. to can of get that on order to grow customers. could metrics also And essentially the simply more comfortable A peak. terms I gaining or hoping number there with at increased was part certain you I'm comments wondering XX% Is least on you just digital it, in that new Is any from pretty more of in region. years. long I kind there are application expand target? could primarily the get curious, that of as to adoption your from is bigger using digital in traction? give customers? today an us by usage a need know that release bit. way do shift little I DELFI customers adoption revenue the the of Or we increasing you a over customers? they was That's the if Is also over digital coming X by digital of this side. year-over-year

Okay.

both customers. by which, on last number rate of our serve and in grown of into adoption on think shared, me of number on that of the I years have this we number use growing of my AI first the a Let cloud come back we capability cloud we to hedge and power DELFI the as have to The remarks. that of said, users I And the of opening complete been we compute think hours customers platform DELFI metrics indeed, the that highlighted the that of X our some additional combination relates has users, a adoption of use XX%. on to adoption or and I offer metrics XX% CAGR

that the said, offer transition existing time yes, our from a cloud. customer by, we legacy offering adoption is our expansion to one So workflows, I data, always to going, at or AI the customers. both desktop by new capability And as our of that measured

of we of existing So combination digital of because most and a offering and both adoption part industry growth production capability digital the platform that adopting. the cloud our that and data of dimension drilling a adds the is and operation. is maybe of it's are recognizing And one exciting the the a to transition finally, operation, AI customers

partner have months. with some weeks autonomous in that seen to accelerate and the of doing and have highlighted recent automation announcements a You systems. alignment And last been further week,

partner, Cognite. I the of supplementing, And with to growth customers on real our from say, adoption desktop drilling the the would this cloud. the our operation transitioning sound production core is So

So you have dimension. X

You adoption with customers to customers have the cloud transition coming and new of existing SaaS solution.

market. data the data of a and AI and AI. reverse our to finally, AI, into the scale unlocking cloud have that power a You are both data It's growth industry; in our the of and and keep next some new year. the management ambition, digital And and customer solutions. operation. on this announcement our the you supporting span segment the year trends of this These X seeing across all adoption It's customer globe,

Scott with Next, Citigroup. we go to Gruber

I rate ask these speak want to touch customers separate cadence by on emissions about seems I'm reduction. these bucket on the transition from technologies not you noted to uptake realize of the And world growth these I over that core? additive and to $X and if multiyear the billion technologies to of lot is is a there I focus new And the in wanted around new Olivier, outlook the believe technologies transition accurate. sales. outlook? And me strong. of for I pretty energy, the the from correct as sales of growth growth you for Can technologies the the are

the it portfolio the I that distinct this I that lot success we is we have geothermal. customer upstream emissions, effect in think X emission lower have correct developing, Scope X our it, first call existing intensity to energy. we themes to stating technology characteristic CCS, a a carbon to a are efficiency. but we represents And that we as for their and legacy have thing on their the customers where in you And or we technology that have No, or that the are compared scope have, this on mentioned have of new net our are X distinct bring ] [ also that in of from promoting

looking not low lower in adopt low they with higher characterize technology is alternate the but market technology. cost, also this this as we technology which by to carbon, deliver continue are only the and way for carbon efficiency, exists deliver that customer So outlook contrast

very yes, adoption. So we are pleased

] zero-carbon solution. cement technology unique Some almost like [ very are

some such of impact game-changing that Some solutions our subsea are having subsea as of both carbon processing a really solution on footprint operation. processing the net

the future, for their methane completion as finally, disrupting have our the assessing [Indiscernible] supporting we emission mid-XX you also to of emission had seeing hence, much are intensity electrical solutions. seeing ENI, are say this. technology make And assessment subsea are we And electrical more technology. announcement adoption made global full we and and and following that Some into accelerated the and as them solution, abatement an proposing with interest management from a company such we be

aligned is this continue our to plan, ambition future. technician carbon, be sustainable a that but a mix and for and mix future our on balanced of in technology So our supports will going with customers also lower lower-cost

Right. Appreciate provide was in you. very for impressive. Got Stephane, also 'XX. release I for one return color cash that you And then it. target on some color. capital conversion broader Can the working appreciate the cash rate. XQ The

working cetera. capital et 'XX tax outlook the So thinking rate, about for curious

with the with were pleased coming from indeed cash free entirely quarter in yes, and working year Scott, the and the almost we fourth quarter, also very full it's the capital. fourth flow

flow, do quarterly of and to see. expect, same year it the pattern show be cash as we So say, now another free of usually very strong will we I XXXX,

first in will quarter, So the clearly capital the increase. working

And of incentives payment occurred the annual items the quarter may to have of exceptional that have as employees We then of reversal you XXXX. in know. the last certain we'll

but be subsequent with observed year. in as a the So what usual, we'll this improvement line in followed will we effect QX this quarters, in then gradual by see

from strong performance deliver And XX finish year months the strong in another So a very hopefully, have can of well. as now. we

to go Piper Lemoine we Sandler. Luke Next, with

could some commercial dialogue you how and the enhanced customer progressed operational wanted you has with you you Olivier, objectives. offering noted booking talked now to see and if have? of about backlog In OneSubsea. the And call, talk last and about at I engagement the just

Thank Luke. you,

venture have please X. joint [Indiscernible], first first we with think the subsea of I Aker Subsea and the with quarter

results for the think I themselves. speak

I think the contributor both the PS, direct quarter, top a it system, to fourth and the on pollution the line margins. was the performance in

and continues -- and I this pleased. now as fledge where more fully I said are think very outlook. happening a and seize objective I offshore this be is our I earlier, I not to extract we that think And cycle said, we to be than see, to pleased full value could synergy strong in to So going forward, more deepwater as

by from and SURF reservoir construction. you them and announced still well that capability as I our the understand subsea that capability organizing So the our priority benefit approaching are customers we some seen and where integration of as have [ VP across well augmented are deliver alliance with and SPS think is as one deliver have ability us ], integration to

recovery hence, reservoir economics opportunity extract more more of to space asset [Indiscernible] development subsea little extract and expertise the delivery domain opportunity importantly, is combined So value importantly have extract higher and from and to are combining to create tieback [Indiscernible] beyond subsea subsurface bit better our and a take a and to well for more processing economics in integrated placement capability, from intake and subsea boosting that going recovery. full in market all our forward and a production and

the have complements tie portfolio the support a capability. that where unique digital and we trends integration we will portfolio technology is help back that boosting core And is have partially processing and that's on see that and portfolio and our alliance coming. unmatched in So reservoir market. capability And we and this with this the

very us so positive from our prospects So on our ahead only feedback is of the capability. far and pleased be I with can customers the

America. Pant is Bank Our of next from question Saurabh with

want Olivier, bit. a I touch little on to exploration maybe

on You call about that the talked today.

You highlighted Asia.

about the about India, talked China, of gas. I exploring think you've for I the talked in past. other the know countries Malaysia, some exploration you

side. you So the of next the a on how do a can tangible little we is impactful What on least couple you maybe happening on are for just SLB? and Maybe expand expect oil exploration a of recovery over that the that both little And us seeing side. remind bit. gas at bit years the

Yes, thank you.

respond Exxon new that by supply oil hubs exploration Frontier we And the of in X And it security in to the offshore yes, And to basins. added exploration the think the in infrastructure-led success around cycle. in and the [Indiscernible] gas seen benefited from the back also think, last replicating exploration. I [Indiscernible] to has desire that rebound Guyana have it activity exploration continued of have also, has form been before New of had I the the years. find reserves existing concerns. gas activity This or we driven commented X resurgence and has to cycle

So this at cycle, in it's look where what when unique happening, you it happening it from everywhere. is is

in existing We been new or think reserves markets in mostly both of new exploration I and success and deepwater where deepwater, in basins, that's infrastructure-led have frontier. the offshore mature have all and shallow offshore, exploration mostly actual activity,

in So Namibia. seen new you have happening frontier

have frontier upcoming [ You in new Surinam control in Brazil ] margin.

You West have in East Colombia -- side. exploration

the South. carbon furthermore exposure significantly more is the ability a Asia production because in stay over to cycle, our bit have low China. here last is intensity in as to this the and with of a a And in both couple to You constitutes [Indiscernible]. what back is coming gas is have and you opinion offshore West plateau from long Africa think and India, maybe the improved deliver cycles it little of a said, unique. unique have economics in what reserves, Malaysia, bit cycle this attribute oil is new little And I of of And of I

and high access reserves success. have benefiting are we and So reservoir has potential really both geological have as that our this, consumption. performance obviously, lot a in from processing we And with geo that performance this that seismic benefit offering [Indiscernible] well digital with a reserve data the we it of better evaluation all as in capability like of economics, And offshore quality segment and increased exposure our technology driven acreage, in have exposure, segments demand introduced to from the digital better are have [Indiscernible].

So this we here we appraisal that partly is very with position it's market and because many have, are to broad, and exposure diverse we pleased across the believe offshore. in basins stay

Fantastic.

East Middle was just record Middle one to to that, XXXX. think you you if remarks the East quick the know press about may, to that prepared the I I on. on early Q&A back in that and side. the release growth expect the talked continue noted you go But on have very beyond Okay. one follow-up, I thing I

is confidence, you bit line things, can side you you a beyond light the on little If on sight the a not the little of that gas just right, the XXXX. of of the bit, what just gives but elaborate of Olivier, sight oil, XXXX part elaborate Maybe on East. beyond have Middle

Yes.

XX, their I Middle to I the And for this. extend and XX from land hence, XX in both Gas, X respond by to capacity from reasons. the the -- multiple expanded plus, capacity will country long XX the that seeing program to have or is the the have addition commitments think first, think be announced XX expansion. you I be realize East that for to country offshore last have to that continue met capacity expansion think, here that

gas to but good to First, the reserves present that in we in LNG years we or reserves on focused to coming countries economic and also that are gas unconventional are there Qatar, at grow are an investment, significant are this expect X the feed gas. actually point, continue a a market, commercial partially very X really fast in seeing and global

So Middle us into potential the in will last investment the confidence that the year giving has second 'XX, of of East ever that to this have seen the well continue expand record in 'XX half is we combination the decade. and

Neil And Mehta Goldman Sachs. our is next question from with

questions of couple A me. for

we margin And metric, should that? about mark. how XXXX? upside downside should Congrats you the margins. How and you path EBITDA margin XX% in drive the about EBITDA about think that on on crossing as is on think first that that factors we could The think

in growth, but and upside I'm as growth mentioned. margin revenue but dollars core the [Indiscernible] in will will 'XX with see expressed achieved you of -- our expansion across digital, continued we as guidance with and earlier, I in be we sure expansion mid-teens EBITDA Clearly, absolute margin really, clearly our

So continue expansion. yes, margin see to we

We have great leverage. operating

this well backlog the adoption, margins in mix, as favorable together our with tailwinds our well. you margins and as pushing technology is pricing have We and in new know, offshore helping is

So it's on. from now it's continue -- subside subside to

activity. to that you are you're the Can grow in how America in about able does sound make in I in outperform America you what's from it's comments And and a XXXX And like helpful. but technology the America, That's face recognize Okay. customer North there. expect of where terms leverage adoption seeing driving pricing, to you, despite count operating in of business perspective? you North a you different talk of weaker a smaller lot It the and mix, geo rig for a then tougher factors macro? North

XXXX, tailwind performance leverage seen in to No, the able U.S. market, of expect this really outperformed in in and outperform to to exposure see the adoption mix visibly XXXX indeed of we the and multiple Gulf potential we're our the drilling market giving retrospect to as technology, some with market, I And continuing. America very exposure it and to outperform technology and Canada. a adoption count, in our North in comes pleased factors, focused a and us as from And factor continue the benefits have to were grow some will rig portfolio in we us think we as Alaska, Canada sequentially a technology have in had transition a we we of we the of great and but success this well East also as particular of with digital see land the in mix with U.S. extent, land visibly. and in fit-for-basin Mexico unique giving we we

and well. ESPs through the for recovery serve Mexico and when impact customers be hence, execution the Gulf to more paramount guidance And able recovery, matters, efficiency level, remain digital, on the low will think, digit I U.S. as reaching performance and the this be execution, of for hence, up get it rewarded hence to and and of reliability we market pricing. continue the offshore land performance and in trading contract we'll Now the outlook. U.S. continue our market well efficiency of of also integration we'll market market customers. use use to priority our construction side, carbon our in and clearly the And more make recount to and us very mid-single outperform XXXX to long position with And to as at continue deliver we'll against

Next, we'll Arun Jayaram Morgan. to with go JP

on versus I your IOCs? to behavior international wanted perhaps in the seeing terms thoughts -- from what the seeing NOCs and compare contrast could the you're spending you in you're markets get the

you, Arun. Thank

the going. have in the gained, company Middle in and turn by I national think in internationally the company. in delay international decision -- in into XXXX XXXX. significant actually at national pack of particular grow But level, from East from for IOC faster investment we to think the NOCs seen nature rebound to traction have region We and extent anticipate I coming led leading were a last I with by investment the that X if as we leading characterize which momentum to the was clearly highest the we contractual I with execution company think also years the a some

our they the are not momentum their on I position, that of have few a continue partly give a about of due plan. mix in offshore to them the nature some expect and solid will us independents IOCs exposure will markets, the execute internationally. forget offshore in to We still for And appraisal a exploration very continuing to market international

And national are we and speaking, the the their pleased, so think accelerating company we looking compared relatively in I to are growth forward their to XXXX IOCs.

of my wondering where of journey you're terms at most some and in where the give us path at Olivier, if Day you're was maybe new And revenue seeing in decade. that highlighted you I in follow-up, the sense traction could to a of areas Analyst the Great. the of target the end $X a energy you billion by XXXX, today? of

X you remember and resetting the we had we adjacency. identified everyone, in have which just as think for we I domain think I scene believe

have scale both scale. CCS storage, a in to growth [Indiscernible] have hydrogen believe, and we disrupt participate critical -- and to potential horizons portfolio, energy for technology mineral. we that that geo-energy, bring of potential, showed And We have are a market and all them us. different of and and different

technology inorganically organically X and seeding X years developing the So or been investments, position. last we have for

and very to geothermal of CCS in CCS participation sequestration our pleased with -- in the for market. ahead are this going We in and terms momentum of studies expectation exploration

by thermal basins. beyond its the potential growth so And established going

is combination on we organic believe market. our of that be this CCS growth believe the to target and we into by terms would market. in So development cycle $X that in this nonres that a a likely And leading more followed be be to next the adjacent billion of potential the decade. likely impact will to ambition, position part in contributor of hydrogen later starting inorganic

the by we the early across development stage about support confident regions feel early this. as market, the many investment we I and So the the execute in success of particularly CCS will incentive making. confident of the of we are feel

question. We is Wells Fargo. have X more That from time for with Roger Read

as you second don't increase and still flat low? or In a 'XX you you on a the Congratulations to on bit the oil it is from kind price. you today half higher and a capacity and We a, assume which question we is like going let's are just dependent on to at reinvestment overall investment international a they we Olivier, other price excess need I'm outlook. companies quarter. last and follow way NOCs, looking little of oil spending, the by E&P, get higher 'XX, capacity would curious to -- simply mentioned. say positive where I'd versus words, oil come price that on need guess, you're I generally oil oil these countries want or to say, the spending industry to the on beyond. spending IOCs, too the of look kind strip If productive prices. up Would sit outlook at characterize fairly showed

they fulfill balance. and on need a company, grow operators the upside they discipline, the international national that supply grow and capital our put demand a the to demand that continue down will execute are at if then decade on realize to more and to it market looking bit looking realize will accelerate pressure I demand-supply it the that IOCs, we at coming continue to this from to continue that I turn well throughout we the think little

responding of some to them are So for program. capacity expansion

responding and they Some are international exploration by their or acreage that appraisal have of development of the development. accelerating existing them

applies have into has offshore the international current development investment offshore improved of The technology on through access, [Indiscernible] price Asia to it being both at have more The oil level for on attractive be are not dynamics And for [Indiscernible] security comment it energy these industry it regional to long-cycle making the either we is be by run. what and long driven investments. feed and the consumption of try by economics both gas gas. security to Hence, Asia I still or or domestic gas demand. the -- favorable the Europe, that's efficiency, driven factors more So turned It the or consumption. investment. needs for to see for cycle, benefits and integration, see. will the This less. economics more

is the we it the demand seeing the that it that have internationally and incentive and the certainly program the operators. attractive. profile our be the resilience to and [Indiscernible] industry in confirmed with and are is of a the met think with It would place into today pipeline gas long in confidence investment I having and of the outlook across oil from cycle breadth put longevity

was substantially share era. there look But that dividend that. we recognizing whether the or think changes in but the then but about from know And dividend within higher about COVID dividend dollar when Obviously, raise in into board of forward, the dividend follow-up meaningful it's and in I acquisition aggregate some XXXX have here? overall a evolving the the that it that, a do been all how per here of and question than should count metric, kind decides share you think dividend today. the era, ties dividend, the back consistent you XXXX to sort it's increase how and an framework the a as

beyond at dividend. really buybacks. Thanks prefer total the for payout look the at goes it to shareholders, it We the Roger. way including we looking is the question, It's

on future. of the and future, our flow to we want itself, happy confidence in can 'XX But dividend we the the this. so it But reasonable. payout strong more long generation cash the replicate free are right in focusing the what had can remains We're sustainable they that increases on. we that approved again, we is dividend in by do as the can board. back, are go as It's at the we So yes, future course, We was XX%. pace do and total it of our in We're happy.

hopefully in it from to $X X.X% in increasing billion are than buybacks including more XXXX. We 'XX,

billion this, year $X of And calculate and minimum So that [Indiscernible]. address above of dividend, the share a if as quarter, minimum will $X the new we you we'll buybacks. of every means potentially review of as course, amount that billion that with back evolves, the

the and Olivier closing to ladies ahead. for Please comments. Larouche turn I'll conference And go gentlemen, back

Leah. gentlemen, following as Ladies with you you, we like and leave to conclude call, takeaways. Thank today's the I would

our expand margins. returns-focused and growth returns ahead. ability momentum operating on and to strategy success above First, will our cycle. expectations the year growth continue fourth revenue quarter throughout delivered in and engines full this year XXXX underscore results the build strong With SLB's flow place across we free differential and We to of continue to and EBITDA in our general cash X

expand we in Second, service performance digital, international remains the macro and business tight are by environment predicated to to offshore capacity exceptional emphasis value basis. an lead Combined well and activity for and on with compelling our our and investment our customers. delivering positioned very with

our confident confident the forward our for returns. increasing joining. impressed I'm XXXX with our the ability very will throughout financial call. our sharing targets deliver today's and conclude teams. this, in I our I all year. With to look shareholder remain you progress I fully by in continue of performance Thank strategy outstanding Finally, and to you

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

You disconnect. may now