SLB N.V. (NYSE:SLB)

The financial data of SLB N.V. over the five-year period reveals notable trends in revenue generation, cost structure, profitability, and expenses. A detailed analysis follows.

Revenue and Sales

Total revenue exhibited steady growth from approximately 23.6 billion US dollars in 2020 to roughly 36.3 billion US dollars in 2024. Services revenue showed an increase from 16.5 billion to around 23.3 billion US dollars, indicating strong and growing demand. Product sales also demonstrated substantial growth, nearly doubling from 7.1 billion to approximately 13 billion US dollars over the same period, contributing significantly to total revenue expansion.

Cost of Revenue and Gross Margin

Costs increased in line with revenue growth but at a somewhat moderated pace. The cost of services rose from about 14.7 billion to 17.8 billion US dollars, while cost of sales increased more markedly from 6.3 billion to nearly 11 billion US dollars by 2024. Total cost of revenue tracked this upward trend from 21 billion to 28.8 billion US dollars. Gross margin improved substantially from 2.6 billion to 7.5 billion US dollars, reflecting enhanced profitability and potentially improved operational efficiencies or pricing power.

Operating Expenses

Research & engineering expenditures increased gradually from around 580 million to 749 million US dollars, indicating sustained or growing investment in innovation. General & administrative expenses remained relatively stable, fluctuating slightly around the 350 to 385 million US dollars range. New expense categories appeared in the latest years, including restructuring & other costs and merger & integration costs, representing strategic adjustments or corporate actions with costs of 399 million and 123 million US dollars, respectively, in 2024 and 2023/2024 periods.

Operating Income and Profitability

After a substantial operating loss of 11 billion US dollars in 2020, operating income recovered strongly and showed consistent improvement, reaching 5.8 billion US dollars by 2024. This turnaround underscores a significant improvement in operational performance, driven by revenue growth and controlled costs. The impact of impairments was evident only in 2020, with a sizeable loss exceeding 12.6 billion US dollars reported then, absent in subsequent years.

Other Income and Expenses

Income from equity method investments increased and remained positive over the years. Interest income increased notably, supporting overall income. Several non-recurring gains such as gain on sale of investments, Liberty shares, real estate, and others appeared irregularly, contributing to income variability. Interest expense remained fairly stable, around 500 million US dollars annually.

Income Before Taxes and Net Income

Income before taxes rebounded from a significant loss in 2020 of nearly 11.3 billion US dollars to steady profits, reaching close to 5.7 billion US dollars in 2024. Tax expenses transitioned from a benefit in 2020 to consistent tax charges up to approximately 1.1 billion US dollars by 2024. Net income followed a similar recovery path with sharp improvement from a loss exceeding 10.4 billion US dollars in 2020 to a profit of about 4.6 billion US dollars in 2024. Net income attributable to SLB closely followed total net income trends.

Minority Interests

Net income attributable to noncontrolling interests remained relatively minor but increased in magnitude from a loss of 32 million US dollars in 2020 to a loss of 118 million US dollars in 2024.

In summary, the company experienced a substantial recovery and growth phase after 2020, characterized by increasing revenues, improved gross margins, controlled operating expenses, and a return to profitability. One-off impairment charges in 2020 significantly impacted early losses but were not repeated. Emerging restructuring and integration expenses in recent years may indicate ongoing strategic restructuring efforts. Overall financial health showed marked improvement with positive operational and net income trends.