SLB N.V. (NYSE:SLB)

Revenue exhibited a generally increasing trend from 2005 to 2014, followed by significant volatility. Net income attributable to SLB demonstrated a similar pattern, with growth up to 2013, then substantial fluctuations including a net loss. A detailed examination of these trends reveals key periods of performance and potential areas for further investigation.

Revenue Trend

Revenue increased substantially from $14.309 billion in 2005 to $48.580 billion in 2014, representing a compound annual growth rate of approximately 14.7%. This period indicates a strong expansion phase. However, revenue declined sharply to $23.601 billion in 2020, likely influenced by external economic factors. A partial recovery was observed in 2021 and 2022, reaching $28.091 billion and $33.135 billion respectively, before stabilizing around $36 billion in 2023 and 2024. The most recent figure for 2025 shows a slight decrease to $35.708 billion.

Net Income Trend

Net income attributable to SLB mirrored the revenue trend initially, growing from $2.207 billion in 2005 to a peak of $6.732 billion in 2013. This represents a compound annual growth rate of approximately 13.3%. A significant downturn began in 2015, culminating in net losses of $1.687 billion in 2015 and $1.505 billion in 2016. While a recovery occurred in 2017 and 2018, net income experienced a substantial loss of $10.137 billion in 2019, followed by another loss of $10.518 billion in 2020. Profitability returned in 2021 with a net income of $1.881 billion, which improved to $3.441 billion in 2022 and $4.203 billion in 2023. The 2024 net income is reported as $4.461 billion, and a slight decrease to $3.374 billion is observed in 2025.

Correlation between Revenue and Net Income

A strong correlation between revenue and net income is evident, particularly during the growth period from 2005 to 2014. However, the period from 2015 onwards demonstrates a weakening of this correlation. While revenue declined, the magnitude of the net income fluctuations was considerably larger, suggesting significant changes in cost structure or other factors impacting profitability. The substantial losses in 2019 and 2020, despite relatively stable revenue compared to earlier years, highlight this divergence.

The period between 2015 and 2020 represents a period of significant challenge, characterized by declining revenue and substantial net losses. The subsequent recovery in 2021-2023 indicates a potential stabilization, but the slight decline in both revenue and net income in 2025 warrants further scrutiny. The volatility observed in net income suggests that the company’s earnings are sensitive to external factors and/or internal operational changes.

Over the period examined, both current assets and total assets exhibited significant fluctuations. Initial growth was followed by a period of decline and subsequent stabilization, with a final upward trend in the most recent years.

Current Assets Trend

Current assets demonstrated a consistent increase from 2005 to 2011, rising from US$8,554 million to US$20,539 million. This growth accelerated between 2009 and 2011. A subsequent decline was observed from 2011 to 2017, reaching US$18,497 million, before a further decrease to US$15,731 million in 2018. From 2018 through 2023, current assets showed a recovery, increasing to US$17,718 million, and continued to rise to US$19,513 million in 2025.

Total Assets Trend

Total assets mirrored the trend of current assets, with substantial growth from 2005 to 2011, increasing from US$18,077 million to US$55,201 million. The most significant increase occurred between 2010 and 2011. A period of decline followed, with total assets decreasing to US$70,507 million in 2018. A sharp contraction occurred between 2018 and 2020, falling to US$42,434 million. From 2020 to 2025, total assets exhibited a recovery, reaching US$54,868 million.

Relationship Between Current and Total Assets

Throughout the period, current assets consistently represented a substantial portion of total assets, generally ranging between 40% and 50%. The ratio of current assets to total assets remained relatively stable over time, suggesting a consistent approach to asset allocation. The largest percentage was observed in 2005 at approximately 47.3% and the smallest in 2025 at approximately 34%.

Periods of Significant Change

The period between 2009 and 2011 represents a period of rapid asset growth for both current and total assets. Conversely, the period between 2018 and 2020 saw a significant contraction in both categories. The recent years, 2023-2025, indicate a potential stabilization and recovery phase.

The observed fluctuations in asset levels may be attributable to various factors, including strategic acquisitions, divestitures, changes in working capital management, and broader economic conditions. Further investigation would be required to determine the specific drivers behind these trends.

An examination of the balance sheet information reveals significant shifts in the company’s liabilities and stockholders’ equity between 2005 and 2025. Overall, both total liabilities and total stockholders’ equity increased substantially over the period, though with differing trajectories and notable fluctuations.

Current Liabilities

Current liabilities demonstrated a generally increasing trend from 2005 to 2016, rising from US$5,515 million to US$15,059 million. Following 2016, these liabilities exhibited more volatility, decreasing to US$10,491 million in 2020 before increasing again to US$14,721 million in 2025. This suggests potential changes in short-term financing strategies or working capital management practices.

Total Liabilities

Total liabilities increased considerably between 2005 and 2016, more than doubling from US$9,981 million to US$36,427 million. A peak was reached in 2016, after which a decline was observed, falling to US$25,146 million by 2020. From 2020 to 2025, total liabilities showed a moderate increase, reaching US$26,598 million, indicating a stabilization after the earlier rapid growth and subsequent reduction.

Debt Composition

Short-term borrowings and long-term debt followed a similar pattern to total liabilities, increasing from US$4,388 million in 2005 to US$19,616 million in 2015. A subsequent decrease was observed, reaching US$12,226 million in 2020, before a slight increase to US$12,074 million in 2025. This suggests a deliberate management of debt levels, potentially influenced by interest rate environments and investment opportunities.

Stockholders’ Equity

Total stockholders’ equity experienced substantial growth from 2005 to 2016, increasing from US$7,592 million to US$41,078 million. However, a significant decrease occurred between 2016 and 2020, falling to US$12,071 million. A recovery was then observed, with equity rising to US$26,109 million by 2025. This fluctuation likely reflects factors such as profitability, dividend payouts, share repurchases, and potentially, revaluation of assets. The decline between 2016 and 2020 is particularly noteworthy and warrants further investigation.

The period between 2016 and 2020 represents a significant turning point, with both total liabilities and stockholders’ equity experiencing declines after a period of sustained growth. The subsequent recovery in stockholders’ equity from 2020 to 2025, while positive, did not fully restore the levels seen in the earlier part of the analyzed timeframe. The observed trends suggest a dynamic financial strategy, potentially responding to external economic conditions and internal business decisions.

The cash flow statement reveals distinct patterns in the company’s financial activities over the period of 2005 to 2025. Operating activities consistently generated positive cash flow, though with fluctuations. Investing activities consistently required cash outflows, while financing activities exhibited more variability, alternating between cash inflows and outflows.

Operating Activities

Net cash provided by operating activities demonstrated a general upward trend from 2005 to 2013, increasing from US$3,004 million to US$11,195 million. A subsequent decline occurred in 2015 to US$8,805 million, followed by further decreases to US$5,663 million in 2017. A modest recovery was observed between 2017 and 2022, peaking at US$6,637 million, before decreasing slightly to US$6,489 million in 2025. The period between 2020 and 2023 shows a significant degree of volatility.

Investing Activities

Net cash used in investing activities remained consistently negative throughout the analyzed period, indicating continuous investment. The magnitude of these outflows fluctuated, with a peak of US$7,174 million in 2012. Outflows generally decreased from 2015 to 2019, reaching a low of US$919 million in 2021, before increasing again to US$3,145 million in 2022 and US$1,412 million in 2025. The consistent negative values suggest ongoing capital expenditures or acquisitions.

Financing Activities

Net cash provided by (used in) financing activities exhibited the most significant variability. The period from 2005 to 2015 showed a pattern of net cash outflows, with a particularly large outflow of US$5,896 million in 2014. A substantial inflow of US$1,374 million occurred in 2015, followed by a return to outflows. From 2016 onwards, financing activities consistently used cash, with outflows ranging from US$2,382 million to US$5,642 million. The largest outflow occurred in 2025. This suggests a reliance on external financing, potentially through debt or equity issuance, followed by repayments or share repurchases.

Overall, the company consistently invested in its operations, as evidenced by the negative cash flow from investing activities. The fluctuations in financing activities suggest active management of capital structure, responding to operational needs and market conditions. The operating cash flow, while generally positive, experienced periods of decline, requiring careful monitoring.

The per share information reveals a fluctuating performance over the period examined. Basic and diluted earnings per share exhibited growth from 2005 through 2008, followed by a significant decline during the 2008-2009 timeframe. Subsequent recovery occurred between 2010 and 2013, reaching a peak in 2013 before experiencing another period of substantial decline, culminating in negative earnings per share in 2015 and 2016. A recovery began in 2017, but was followed by a large loss in 2019. Earnings per share then recovered in 2021, 2022 and 2023, before decreasing slightly in 2024 and 2025.

Earnings Per Share (Basic & Diluted)

Both basic and diluted earnings per share followed a similar trajectory. The difference between the two remained consistently small throughout the period, suggesting minimal dilution from outstanding stock options or convertible securities. The period from 2005 to 2008 demonstrated consistent growth, increasing from approximately US$1.88 to US$4.54 for basic earnings per share. The financial crisis of 2008-2009 caused a sharp contraction, with earnings per share falling to US$2.62 in 2009. A rebound occurred between 2010 and 2013, peaking at US$5.09. However, the subsequent downturn in the energy sector significantly impacted profitability, resulting in losses in 2015 and 2016. While a recovery was observed in 2017 and 2021-2023, the substantial loss in 2019 indicates continued volatility. The most recent years, 2024 and 2025, show a slight decrease from the 2023 levels.

Dividend Per Share

Dividend per share demonstrated a consistent upward trend from 2005 to 2014, increasing from US$0.42 to US$2.00. This suggests a commitment to returning value to shareholders during periods of profitability. However, in response to the downturn in 2015 and 2016, the dividend was significantly reduced to US$0.88 in 2020 and US$0.50 in 2021. A gradual increase in dividend payments was then observed, reaching US$1.14 in 2025, but remained below the peak levels seen prior to 2015. The dividend policy appears to be responsive to earnings performance, prioritizing shareholder returns when profitable and conserving cash during challenging periods.

Overall, the per share information indicates a company sensitive to external economic factors, particularly those impacting the energy industry. While the company demonstrated an ability to grow earnings and dividends during favorable conditions, it also experienced significant volatility and periods of loss. The dividend policy reflects a pragmatic approach, adjusting payouts in line with earnings performance.