Investing.com -- Schlumberger Ltd. saw its shares drop 2.7% in premarket trading Friday after reporting first-quarter results that fell short of analyst estimates.
The company posted adjusted earnings per share of $0.72 for the quarter, missing the consensus forecast of $0.74. Revenue came in at $8.49 billion, below expectations of $8.64 billion and down 3% compared to $8.71 billion in the same quarter last year.
"It was a subdued start to the year as revenue declined 3% year on year," said Schlumberger (NYSE:SLB) CEO Olivier Le Peuch. He noted that higher activity in parts of the Middle East, North Africa, Argentina and offshore U.S. was more than offset by slowdowns in other regions.
Despite the revenue decline, Schlumberger managed to slightly improve its adjusted EBITDA margin to 23.8% from 23.6% a year ago. The company said this demonstrated its "resilience in changing market conditions" through cost discipline and resource alignment.
Digital revenue was a bright spot, growing 17% year-over-year. Le Peuch said this reflects increasing customer focus on efficiency and performance through digital and AI solutions.
Looking ahead, Schlumberger committed to returning a minimum of $4 billion to shareholders in 2025 through dividends and share repurchases. The company expressed confidence in its ability to generate strong cash flow despite uncertain industry conditions.
For the first quarter, Schlumberger reported operating cash flow of $660 million and free cash flow of $103 million. The company’s net debt increased to $10.1 billion at quarter-end from $7.4 billion at the end of 2024.