Schlumburger Limited /NV (SLB), Large Cap AI Study of the Week

Schlumburger Limited /NV (SLB), Large Cap AI Study of the Week

June 25, 2024

Weekly AI Pick from the S&P 500

Company Overview

Schlumberger Limited, now branded as SLB, is a global technology company focused on energy innovation, operating in over 100 countries. The company aims to meet the growing energy demand while driving decarbonization and developing new energy systems. SLB is organized into four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems, each offering specialized technologies and services. A significant new venture is the 2023 joint venture with Aker Solutions and Subsea7, forming OneSubsea, which aims to enhance subsea production efficiency by leveraging a broad technology portfolio, manufacturing scale, and digital expertise. This positions SLB for future growth in subsea production.

SLB operates through four geographical Basins: Americas Land, Offshore Atlantic, Middle East & North Africa, and Asia, deploying tailored technologies to meet regional customer needs. Supported by a global network of research and development centers, SLB focuses on advancing technologies to enhance industry efficiency, lower costs, and drive sustainability, particularly through its New Energy investments in low-carbon sources and carbon capture technologies. The company's strategy hinges on three growth engines: Core (focused on oil and gas efficiency and reduced environmental impact), Digital (leveraging leading digital solutions like the Delfi cloud platform), and New Energy (diversifying into carbon solutions, hydrogen, geothermal, energy storage, and critical minerals). Core continues to be the primary growth driver through reservoir, construction, and production systems innovations, while New Energy aims to become the largest division by focusing on green technologies.

SLB's sustainability goals include achieving net-zero greenhouse gas emissions by 2050, with intermediate targets supported by its Transition Technologies portfolio to reduce customer and operational emissions. The company emphasizes workforce diversity and inclusivity, aiming for women to represent 25% of its salaried workforce by 2025 and 30% by 2030. SLB supports an inclusive culture through policies like a global Code of Conduct, a DEI strategy, and a global mobility program to develop cross-cultural competencies. The company invests heavily in learning and development to ensure its workforce is agile and skilled for future leadership. Key leadership roles, such as Ugo Prechner, Vice President and Controller, and Vijay Kasibhatla, Director of Mergers and Acquisitions, indicate stability and experience in the company’s financial and strategic operations.

By the Numbers

Annual 10-K Report Summary (2023):

  • Revenue: $33.1 billion (18% year-over-year increase)
  • International Revenue: 20% increase
  • North American Revenue: 12% increase