Schlumberger Limited (NYSE:SLB) Q4 2023 Earnings Call Transcript

Stephane Biguet: Thanks for the question, Roger. It’s really the way we look at it is it goes beyond the dividend. We prefer looking at the total payout to shareholders, including buybacks. So the dividend itself, yes, 10%. We’re happy. We can do this. We’re happy it was approved by our board. It’s on the back, of course, of the strong free cash flow generation we had in ’23 and our confidence we can replicate that in the future. But we want to go at the right pace so that it remains sustainable in the future, and we can do more dividend increases in the future as long as they are reasonable. But again, total payout is what we are focusing on. We are increasing it from $2 billion in ’23, including buybacks to hopefully more than 2.5 in 2024.

So, if you back calculate this, of course, with the new amount of dividend, that means a minimum of $1 billion of share buybacks. And as the year evolves, we will review that every quarter, and we’ll address that potentially above the $1 billion minimum as relevant.

Operator: And ladies and gentlemen, I’ll turn the conference back to Olivier Le Peuch for closing comments. Please go ahead.

Olivier Le Peuch: Thank you, Leah. Ladies and gentlemen, as we conclude today’s call, I would like to leave you with the following takeaways. First, our fourth quarter and full year 2023 results underscore SLB’s differential ability to general returns throughout the cycle. We delivered strong revenue growth and free cash flow above expectations and continue to expand EBITDA and operating margins. With momentum across our three engines of growth and our returns-focused strategy in place, we will continue to build on this success in the year ahead. Second, the macro environment remains very compelling for our business with investment and activity predicated in international and offshore basins. Combined with tight service capacity and an emphasis on performance and digital, we are well positioned to expand our lead by delivering exceptional value to our customers.

Finally, I remain very confident in our strategy and impressed by the outstanding performance of our teams. I’m fully confident in our ability to deliver our 2024 financial targets and continue increasing shareholder returns. I look forward to sharing our progress with you throughout the year. With this, I will conclude today’s call. Thank you all for joining.

Operator: Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation. You may now disconnect.