SLB (NYSE:SLB) reported third-quarter earnings that aligned with analyst expectations, thanks to strong demand for its digital solutions and a focus on cost reduction. The Houston-based oilfield services company recorded adjusted earnings per share of $0.89, matching the consensus estimates.
Revenue for the quarter increased by 10% year-over-year, reaching $9.16 billion, though this missed the projected $9.27 billion. As a result, shares fell more than 3% intra-day today.
The company attributed its steady performance to a combination of digital product expansion and ongoing long-cycle projects, particularly in deepwater and gas sectors.
SLB’s CEO, Olivier Le Peuch, emphasized that the company’s results were bolstered by efforts to optimize costs and by the broader adoption of its digital products and services. The digital segment grew by 25% year-over-year as more clients embraced the technology to streamline planning, enhance automation, and improve operational efficiency.
Despite these gains, SLB encountered challenges from slower short-cycle activity growth and cautious spending by some international producers, affected by lower oil prices and a global surplus. Revenue growth in the Middle East, Asia, and offshore North America was offset by declines in Latin America, with operations in Europe and Africa remaining steady.