Schlumberger Ltd. (NYSE:SLB)

The financial data reveals several notable trends over the five-year period. Total revenue exhibited consistent growth, increasing from $23.6 billion in 2020 to $36.3 billion in 2024. This growth was driven by both services and product sales. Services revenue rose from $16.5 billion to $23.3 billion, while product sales grew from $7.1 billion to $13.0 billion, reflecting a balanced expansion in both segments.

Costs also increased across the board. The cost of services rose from $14.7 billion to $17.8 billion and the cost of sales increased from $6.3 billion to $11.0 billion, resulting in a corresponding increase in total cost of revenue from $21.0 billion to $28.8 billion. Despite this, gross margin improved substantially from $2.6 billion in 2020 to $7.5 billion in 2024, indicating enhanced operational efficiency or pricing power that more than offset rising costs.

Operating expenses related to research & engineering and general & administrative costs showed modest increases over the period. Research & engineering expenses increased from $580 million to $749 million, while general & administrative expenses remained relatively stable, moving slightly from $365 million to $385 million. New expense categories appeared in the last two years, including restructuring & other expenses and merger & integration costs, indicating recent organizational changes or integration activities.

Operating income recovered strongly after a substantial loss in 2020 of $11.0 billion and grew steadily to $5.8 billion in 2024. The operating loss in 2020 was primarily due to significant impairments and other non-recurring charges amounting to approximately $12.7 billion, which were not present in later years. This recovery suggests improved profitability and operational performance.

Other income components fluctuated. Earnings from equity method investments generally increased, peaking at $206 million in 2023. Interest income grew significantly from $33 million to $174 million, while interest expense remained fairly stable around $500 million annually. Gains from various asset sales and investments exhibited sporadic activity, contributing positively to non-operating income in some years.

Income before taxes followed the positive trajectory of operating income, moving from a loss of $11.3 billion in 2020 to a profit of $5.7 billion in 2024. Tax expenses fluctuated, turning from a benefit of $812 million in 2020 to consistent expenses exceeding $1.0 billion annually in recent years. As a result, net income attributable to the company transformed from a large loss of $10.5 billion in 2020 to a profit of $4.5 billion in 2024, reflecting strong recovery and profitability growth.

Overall, the data indicates a substantial turnaround from a difficult financial position in 2020, marked by large impairments and losses, to sustained growth in revenues, margins, and profitability through to 2024. Operational improvements, controlled expenses, and positive contributions from investments and asset transactions supported this positive trend. However, the appearance of restructuring and integration expenses in the latest years suggests ongoing organizational adjustments.