斯伦贝谢公司 (SLB.US) 2025年第三季度业绩电话会
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会议摘要
Discusses SLB's digital business segments, emphasizing growth in platforms and applications, digital operations, and digital exploration. Highlights the integration of Champion X, driving production-focused business growth. Outlines financial expectations, including revenue increases, margin improvements, and free cash flow, supported by digital transformation efforts and expanding data center solutions in the oil and gas industry.
会议速览
SLB's Third Quarter Earnings Highlight Digital Growth and Market ResilienceThe call discusses SLB's third quarter earnings, emphasizing digital division growth, international market resilience, and future guidance. Highlights include a 1% sequential revenue increase, driven by digital operations and international markets. Digital revenue grew 11% sequentially, with a focus on AI and platform solutions. Guidance for Q4 is provided, noting continued growth expectations despite macroeconomic challenges.
Leveraging Global Footprint and Technology for Oil & Gas Resilience and GrowthThe dialogue highlights SLB's strategic integration of Champagne, emphasizing the company's global reach, technology portfolio, and focus on pollution recovery to navigate market uncertainties and capitalize on growth opportunities in the oil and gas sector. SLB's strong performance, regional resilience, and investments in digital and chemical technologies are showcased, positioning the company to benefit from future market rebounds, particularly in international markets. The discussion underscores the importance of technology in optimizing production and maximizing recovery from mature assets, with SLB offering a differentiated value proposition through its comprehensive solutions and deep subsurface expertise.
Q4 Financial Projections: High Single-Digit Growth, Digital Division ThrivesThe company forecasts high single-digit top-line growth for Q4, attributing this to a full quarter of champagne sales and increased digital and product sales. It confirms second-half revenue within the guidance range of 18.2 to 18.8 billion, with a sequential EBITDA margin expansion of 50 to 150 bps. The Digital Division is projected to achieve double-digit growth year-on-year, reaching a 30% EBITDA margin for the full year. Q1 earnings per share were 69 cents, down from previous quarters, impacted by charges related to the Champion X acquisition and workforce reductions.
Revenue Flat Sequentially, Digital Division Introduces New Reporting StructureRevenue remained flat sequentially due to Champion X's impact, while the company introduced a new digital reporting structure highlighting four revenue categories: platforms and applications, digital operations, digital exploration, and professional services, aiming to increase transparency and emphasize the strategic value of the digital business.
Q1 Digital Revenue Growth & Champion X Acquisition Impact on Production SystemsDigital revenue rose 11% sequentially to $658M, with AR up 70% YoY. Champion X's integration boosted Production Systems revenue by 18%, though margins dipped. Expected $400M annual pretax synergies by 2026.
Strong Cash Flow Generation and Shareholder Returns Highlighted in Financial UpdateThe company reported robust cash flow generation, with 1.7 billion from operations and 1.1 billion free cash flow for the quarter. Capital investments reached 581 million, with expectations of 2.4 billion annually. A significant 2.4 billion was allocated to stock repurchases, alongside a 1.6 billion dividend, marking substantial shareholder returns. Anticipated increases in free cash flow for Q4 are tied to inventory sales and higher collections.
Expanding Chemicals and Production Services for Enhanced Oil Recovery and ResilienceThe company aims to grow its chemicals and production services, leveraging technology and integration to enhance oil recovery, address metal decline, and support upstream development, positioning itself as a leader in a market that will expand long-term.
Digital Transformation and Revenue Growth in Oil and Gas Industry SegmentsThe dialogue discusses the strategic focus on digital operations and recurring revenue growth within various segments of the oil and gas industry. Key points include the expansion of AI capabilities, cloud adoption, and digital services to enhance customer offerings. The conversation highlights the potential for high single-digit growth in recurring revenue, driven by customer adoption and technology transitions. It emphasizes the importance of sustainable growth through integrated digital solutions and professional services, aiming for billion-dollar revenue milestones.
Outlook on Deepwater Drilling and Saudi Arabian Oil & Gas MarketsDiscussion covers the anticipated growth in deepwater drilling activities, predicting a bottoming out in Q4 24 with gradual strengthening through 2027. It also addresses stabilization and potential rebound in Saudi Arabia's oil and gas sectors, driven by capacity expansion and supply assurance needs.
Transitioning to the Next Question in a Conference CallA moderator thanks a contributor and prepares to move on to the next participant's question, maintaining a smooth flow in the discussion.
Data Center Solutions: Global Expansion and Low-CapEx Growth StrategyThe dialogue highlights the rapid growth and global expansion plans for the data center solutions business, emphasizing the development of scalable modular technologies and strategic partnerships. The focus is on expanding customer base, geographic reach, and service offerings, driven by the AI boom and data center demand, with minimal capital expenditure.
Revenue Growth Through Enhanced Customer Adoption and Broadened Access to New TechnologiesThe 7% annual recurring revenue growth is driven by enhancing adoption among existing customers and broadening access to new technologies. New customer additions in emerging technology spaces also contribute, with notable success in the launch of the Lum Lu data AI platform. Large customer adoption is increasing, signaling the effectiveness of these strategies.
EBITDA Margin Projections and Potential Growth to Full Year LevelsThe dialogue explores the projected EBITDA margin reaching full year levels, with a significant increase expected in Q4, and discusses potential future margin levels.
Achieving 35% EBITDA Margin for Full Year and 45% Baseline for Future, Highlighting Seasonal Growth and Digital Business EfficiencyThe discussion confirms reaching a 35% EBITDA margin for the full year, with Q4 being the strongest quarter for both revenue and EBITDA. A 45% EBITDA margin is proposed as a future baseline, noting the digital business's high margin as a proxy for free cash flow, excluding exploration data and CapEx.
Digital Transformation's Impact on Business Growth and Capital EfficiencyDiscusses digital margins and capital intensity, highlighting digital's potential to outperform core business growth through market expansion and operational capability enhancements, driven by digital transformation trends and AI advancements.
International Markets Expected to Lead Recovery Amid Economic Challenges and Supply-Demand RebalanceThe dialogue discusses economic conditions, forecasting a recovery led by international markets due to deepwater pipelines, gas supply, capacity expansion, and non-coal development, contrasting with North America's challenges and consolidation. Recovery is anticipated post-supply-demand rebalance, with international markets showing a better outlook and initial rebound potential.
Oil Market Rebalancing & SLB's Consolidation Strategy Amidst OversupplyDiscusses oil market rebalancing through supply moderation, potential demand growth, and strategic inventory management. Highlights SLB's focus on executing recovery strategies via bolt-on acquisitions and technology enhancements, with a cautious approach to further consolidation amid market softness.
Exploring Digital Market Growth and Competitive LandscapeDiscussion on digital market potential highlighted unconstrained growth, emphasizing technology's role in enhancing productivity and decision-making. Core solutions often bundled with digital offerings facilitate customer adoption, fostering collaborative industry leadership.
SMB's Resilient Upstream Oil and Gas Investment and Digital Business GrowthUpstream oil and gas investment remains resilient, with SMB's global footprint and recent Champex acquisition driving steady financial results and expanded portfolio. The digital business, a fast-growing segment, is redefining SMB's approach, positioning the company strongly for future growth and shareholder value.
要点回答
Q：What is the main focus of the earnings call being discussed?
A：The main focus of the earnings call is on the third quarter performance, the near-term and ACO for oil and gas markets, and guidance for the fourth quarter.
Q：What were the highlights in the revenue growth discussed in the call?
A：Highlights of the revenue growth include sequential revenue growth driven by two months of activity from Shopper X, resilient performance of ACO in international markets, and notable increases in several countries across the Middle East and Asia.
Q：What achievements are mentioned regarding the company's digital business?
A：The achievements mentioned for the digital business include a 11% sequential increase in digital revenue, a 39% increase in digital operations and enables services and automation capabilities, a 50% year-over-year increase in automated drilling footage, and over 20,000 connected assets deployed in the field.
Q：How is the integration of Shopper X impacting the company's operations?
A：The integration of Shopper X is contributing to the growth in digital business, with the addition of new connected assets and a combined total of more than 20,000 connected assets deployed in the field, providing digital insights and optimization for customers.
Q：What financial expectations are set for the company's digital business?
A：The financial expectations for the digital business include continued revenue growth that outperforms global upstream spending, growth exceeding the core business by double digits, and the continuation of highly accretive margins to the company.
Q：What are the highlights of the performance in the challenging macro environment?
A：Highlights of the performance in the challenging macro environment include the core division's flat sequential performance and the benefits from the addition of champagne, which delivered revenue growth and margin contribution ahead of expectations.
Q：How did the core divisions of the company perform in the quarter mentioned?
A：The core divisions of the company essentially flat sequentially, excluding the impact of the champagne contributions. They demonstrated resilience in the challenging macro environment.
Q：What is the strategic focus of the company in the context of production enhancement?
A：The strategic focus of the company in the context of production enhancement is on pollution recovery, with a combination of deep subsurface expertise, the broadest range of life, international, and chemical technology portfolio, and unique integration and digital capabilities.
Q：What achievements are mentioned regarding the quarterly results and market commission faced?
A：The quarterly results mention achieving regional success across core divisions with early success with champon, continuing momentum in digital, and several bright spots on the horizon.
Q：What is the current state of the macro environment in the oil and gas market?
A：The macro environment in the oil and gas market is characterized by challenging commodity prices and an uncertain demand-supply balance. However, the industry has shown discipline with most long-cycle and international activities demonstrating resilience. Global inventories are at material year lows, and the need to offset natural operation decline accounts for nearly 90% of annual upstream investment, which creates a supportive demand for stable investment in the near to midterm.
Q：What are the prospects for international markets and investments?
A：Many countries in international markets are poised for investment growth tied to long-term capacity expansion plans and assurance of energy supply, particularly for gas. There is a positive catalyst for activity in member countries due to OPEC plus production cuts being filled using existing capacity, but additional releases will require new inventory, drilling, or new development to meet higher supply output, indicating potential for higher activity in 2026, especially in deeper markets.
Q：How is the pipeline condition and investment outlook described?
A：The pipeline is described as very healthy with favorable economics, expecting further investments across the Atlantic supported by oil and in Asia driven by gas. Short-term scheduling uncertainties have resulted in white space, but this is expected to progressively disappear as there are a number of FID plans for 2026 and early 2027. In North America, muted activity is expected due to lower prices underpinned by efficiency improvements. The overall outlook suggests that supply-demand rebalancing could lead to a future activity rebound, and the company is well positioned to benefit from such an event.
Q：What are the expectations for the fourth quarter in terms of revenue and adjusted EBITDA margin?
A：The fourth quarter is expected to achieve high single-digit top-line growth, with a full quarter of champion X results and seasonally higher sales in digital and product sales. The revenue is expected to be within the midpoint of the previous guidance range of 18.2 billion to 18.8 billion. The adjusted EBITDA margin is expected to expand by 50 to 150 basis points, primarily driven by increased earnings contribution from both digital and production systems sales, including a full quarter of champion X results and fully restored operations on digital assets.
Q：How did the first quarter's revenue and charges compare to the prior year?
A：First quarter revenue, excluding charges and credits, was 69 cents, which is a decrease of 5 cents sequentially and 20 cents compared to the first quarter of the prior year. The first quarter recorded 19 cents of charges, including 12 cents related to the Champion X acquisition and 4 cents related to workforce reductions. First quarter revenue of 8.9 billion increased by 382 million, or 4%, sequentially.
Q：What were the impacts of the acquisition of ChampionX and divestitures on revenue and EBITDA margin?
A：The acquisition of ChampionX contributed to a sequential increase in revenue by 579 million and pre-tax income by 108 million in the quarter. However, this was partially offset by the loss of approximately 100 million of APLS revenue due to a pipeline disruption in Ecuador and the absence of another 100 million of revenue from the divestiture of the Pallier ATS project. After considering these factors, revenue was essentially flat on a sequential basis, and the pretax segment operating margin declined 42 basis points to 18.2%, while the company-wide adjusted EBITDA margin decreased by 92 basis points to 23.1%.
Q：How is the new digital reporting structure described?
A：The new digital reporting structure is described as a standalone division with revenue captured across four categories: platforms and applications, digital operations, digital exploration, and professional services. The company expects the digital business to grow faster than the core business with margins significantly higher than the rest of the company. To provide better insight into these changes and the impact of ChampionX, the company has included supplemental pro forma financial information.
Q：What is the purpose of combining unique strengths of SLB's services and digital technologies?
A：The purpose of combining unique strengths of SLB's services and digital technologies is to deliver more reliable and efficient field operations through the use of connected solutions, performance slides, and digital service delivery centers.
Q：How does the revenue in the digital operations category contribute to the company's overall revenue?
A：Revenue in the digital operations category is generated from the same client base as core divisions, is repeatable, and a portion is recurring, contributing to a predictable and substantial part of the company's overall revenue.
Q：What is the impact of the digital reporting structure on understanding the company's performance?
A：The digital reporting structure allows for a detailed understanding of the company's performance by categorizing revenue into four categories and providing a measure of predictable revenue through annual recurring revenue (ARR), offering insights into digital operations, professional services, and the overall digital revenue streams.
Q：What was the first quarter's digital revenue and EBITDA, and what factors drove this performance?
A：The first quarter's digital revenue was $658 million with an increase of 11% sequentially, and adjusted EBITDA was $215 million with a margin of 52.7%. Sequential revenue growth was driven by robust sales of digital exploration and increased digital operations, along with two months of activity from Champion X contributing $20 million to digital revenue.
Q：How did the core divisions' performance change from the previous quarter?
A：Reservoir revenue declined 1% sequentially, well revenue was flat, and production systems revenue increased 18% sequentially. Production systems revenue was positively impacted by two months of activity from the acquired Champion X businesses, offset by lower completion sales and subsea margins.
Q：What were the revenue and margin growth expectations for Champion X in the first year post-acquisition?
A：Champion X is expected to generate $400 million of annual pretax synergies within the first 12 months after closing. The company remains confident that it will be able to realize 70% to 80% of these synergies within the first 24 months of the transaction.
Q：What was the company's capital investment and free cash flow outlook for the year?
A：The company generated $1.7 billion in cash flow from operations and $1.1 billion in free cash flow during the quarter. Capital investments are expected to be approximately $2.4 billion including the impact of Champion X. Free cash flow is expected to increase in the fourth quarter due to inventory sales and higher customer collections.
Q：How does the acquisition of Champion X impact the company's production and services focus?
A：The acquisition of Champion X has positioned the company to address the largest production-focused business with a focus on offsetting industry decline rates. It has created the largest production-focused business and services, with an emphasis on resilience and technological innovation for recovery enhancement.
Q：What is the strategy for the data center solutions business and how does it plan to grow globally?
A：The strategy for the data center solutions business involves developing a skill set for global data center construction and expanding into new markets. The company has established a presence in Asia and aims to add technology to make its offerings unique. Growth strategies include expanding customers, expanding geography, and broadening the offering. The focus is not driven by oil and gas customers but by IPAs and partners responding to the AI boom and data center growth.
Q：Is there a need for significant CapEx or balance sheet commitment to grow the data center solutions business?
A：The data center solutions business does not require significant CapEx or balance sheet commitment. It is a low CapEx intensity business, and the investment required is in competencies at scale within the organization and technology, specifically scalable and modular solutions.
Q：Is the 7% growth in annual recurring revenue predominantly from new customers or an existing customer base?
A：The 7% growth in annual recurring revenue is not exclusively from new customers or an existing customer base but is a result of enhancing adoption within customers, developing new solutions, and increasing consumption. The company already has 1500 customers and continues to add new customers in every new space where it develops technology.
Q：How significant is the growth expected in the fourth quarter in terms of EBITDA margin?
A：The company expects to reach a 35% EBITDA margin for the full year, which implies a significant jump from the first quarter. In the fourth quarter, there will be a step up in EBITDA margin, and historically, Q4 is the best revenue and EBITDA quarter of the year. The company is confident that it can achieve the 35% EBITDA margin for the full year.
Q：What is the projected EBITDA margin and how does it relate to future growth potential?
A：The projected EBITDA margin is expected to be around 35% for the full year, with a step up in the fourth quarter. Historically, Q4 is the best EBITDA quarter. Looking into the future, a 45% EBITDA margin is considered a good baseline. Excluding the digital exploration part, the EBITDA margin is a good proxy for free cash flow due to the low CapEx in the digital business.
Q：How does the digital segment contribute to the company's growth and what is its potential to outperform the core business?
A：The digital segment is expected to contribute to the company's growth by leveraging market leadership and the trend of digital transformation in the industry. The segment aims to add digital operation capability and enhance the offering and performance through connectivity to a live performance center. This differentiation is expected to create more value for customers and ultimately lead to the digital segment growing at a higher rate than the core business.
Q：What is the reasoning behind the expectation of international leading the recovery in the data center solutions business?
A：The expectation that international markets will lead the recovery in the data center solutions business is not explicitly detailed in the provided text. However, the text suggests that market expansion and the digital transformation of operations are critical missions for many customers, which implies that these markets may see stronger growth potential. For a more detailed explanation, further context or elaboration from the source material would be necessary.
Q：What factors are influencing the outlook for the oil market rebalancing?
A：The factors influencing the outlook for the oil market rebalancing include the expected management of the release of supply to avoid further oversupply, the anticipation of growth in demand over time, and the commitment to capacity expansion in international locations to offset decline and account for aging infrastructure.
Q：What is the expected timeframe for the oil market to rebalance and what is the anticipated investment incentive?
A：The expected timeframe for the oil market to rebalance is sometime next year, when the excess supply is sufficiently rebalanced, allowing the market to have an investment incentive to consolidate and start to rebound.
Q：How might recent M&A activity and the addition of ChampionX impact Statoil's strategy?
A：Recent M&A activity and the addition of ChampionX are helping to balance Statoil's portfolio on the production side, and during this period of softness, Statoil is focusing on executing the benefits of this addition and consolidating its recovery strategy through add-on, bolt-on acquisitions and digital technology integration.
Q：What is the potential growth for the digital solutions market in the upstream oil industry?
A：The potential growth for the digital solutions market in the upstream oil industry is considered unconstrained, with the belief that the digital solutions will create their own space and that there are no constraints in the market for scaling and offering capabilities. Growth potential could be significant, ranging from 1% to potentially 50% or more of Statoil's core business, as the digital solutions could be adopted by a much larger number of customers and workflows.
Q：How does Statoil view its role in customers' digital journeys?
A：Statoil views itself as a partner to its customers in their digital journeys, working with them to help them better use their existing products and expand their use of Statoil's offerings. Statoil's role is to support customers along their digital journey, provide a platform that integrates with their workflows, and to be the partner of choice in the digital transformation of the oil and gas industry.
Q：What is Statoil's approach to digital sales in relation to its core offerings?
A：Statoil's approach to digital sales is not to be passive or push everything out as the platform integrator but to be selective and complementary. Statoil works with customers to enhance their use of existing products or to sit alongside competitive offerings integral to workflows. Statoil believes that the digital solutions are a natural complement to its core offerings and that they will continue to grow in line with the industry's global spend, which Statoil is optimistic about.
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