SLB Q4, 2024 Results: Dividend Hike, $2.3B Buyback

(Stated in millions, except per share amounts) Three Months EndedChange Dec. 31, 2024Sept. 30, 2024Dec. 31, 2023SequentialYear-on-year Revenue

$9,284

$9,158

$8,990

1%

3%

Income before taxes - GAAP basis

$1,387

$1,507

$1,433

-8%

-3%

Income before taxes margin - GAAP basis

14.9%

16.5%

15.9%

-151 bps

-100 bps

Net income attributable to SLB - GAAP basis

$1,095

$1,186

$1,113

-8%

-2%

$0.77

$0.83

$0.77

-7%

-

Adjusted EBITDA*

$2,382

$2,343

$2,277

2%

5%

Adjusted EBITDA margin*

25.7%

25.6%

25.3%

8 bps

33 bps

Pretax segment operating income*

$1,918

$1,902

$1,868

1%

3%

Pretax segment operating margin*

20.7%

20.8%

20.8%

-11 bps

-12 bps

Net income attributable to SLB, excluding charges & credits*

$1,311

$1,271

$1,242

3%

6%

Diluted EPS, excluding charges & credits*

$0.92

$0.89

$0.86

3%

7%

Revenue by Geography International

$7,483

$7,425

$7,293

1%

3%

North America

1,752

1,687

1,641

4%

7%

Other

49

47

56

n/m

n/m

$9,284

$9,159

$8,990

1%

3%

(Stated in millions) Three Months EndedChange Dec. 31, 2024Sept. 30, 2024Dec. 31, 2023SequentialYear-on-year Revenue by Division Digital & Integration

$1,156

$1,088

$1,049

6%

10%

Reservoir Performance

1,810

1,823

1,735

-1%

4%

Well Construction

3,267

3,312

3,426

-1%

-5%

Production Systems

3,197

3,103

2,944

3%

9%

Other

(146)

(167)

(164)

n/m

n/m

$9,284

$9,158

$8,990

1%

3%

Pretax Operating Income by Division Digital & Integration

$442

$386

$356

14%

24%

Reservoir Performance

370

367

371

1%

-

Well Construction

681

714

770

-5%

-12%

Production Systems

506

519

442

-3%

14%

Other

(81)

(84)

(71)

n/m

n/m

$1,918

$1,902

$1,868

1%

3%

Pretax Operating Margin by Division Digital & Integration

38.3%

35.5%

34.0%

274 bps

430 bps

Reservoir Performance

20.5%

20.1%

21.4%

35 bps

-90 bps

Well Construction

20.8%

21.5%

22.5%

-70 bps

-162 bps

Production Systems

15.8%

16.7%

15.0%

-93 bps

79 bps

Other

n/m

n/m

n/m

n/m

n/m

20.7%

20.8%

20.8%

-11 bps

-12 bps

*These are non-GAAP financial measures. See sections titled "Charges & Credits", "Divisions" and "Supplementary Information" for details. n/m = not meaningful

Full-Year Results

	(Stated in millions, except per share amounts)
	Twelve Months Ended
	Dec. 31, 2024		Dec. 31, 2023		Change
Revenue	$36,289		$33,135		10%
Income before taxes - GAAP basis	$5,672		$5,282		7%
Income before taxes margin - GAAP basis	15.6%		15.9%		-31 bps
Net income attributable to SLB - GAAP basis	$4,461		$4,203		6%
Diluted EPS - GAAP basis	$3.11		$2.91		7%
Adjusted EBITDA*	$9,070		$8,107		12%
Adjusted EBITDA margin*	25.0%		24.5%		52 bps
Pretax segment operating income*	$7,321		$6,523		12%
Pretax segment operating margin*	20.2%		19.7%		49 bps
Net income attributable to SLB, excluding charges & credits*	$4,888		$4,305		14%
Diluted EPS, excluding charges & credits*	$3.41		$2.98		14%
Revenue by Geography
International	$29,415		$26,188		12%
North America	6,680		6,727		-1%
Other	194		220		n/m
	$36,289		$33,135		10%
SLB acquired the Aker subsea business during the fourth quarter of 2023 in connection with the formation of the OneSubsea™ joint venture. The acquired business generated revenue of $1.93 billion during the full year of 2024 and $484 million during the fourth quarter of 2023. Excluding the impact of this acquisition, SLB's full-year 2024 revenue increased 5% year on year; North America full-year 2024 revenue decreased 1% year on year; and international full-year 2024 revenue increased 7% year on year.
*These are non-GAAP financial measures. See sections titled "Charges & Credits", "Divisions", and "Supplementary Information" for details.
n/m = not meaningful

	(Stated in millions)
	Twelve Months Ended
	Dec. 31, 2024		Dec. 31, 2023		Change
Revenue by Division
Digital & Integration	$4,247		$3,871		10%
Reservoir Performance	7,177		6,561		9%
Well Construction	13,357		13,478		-1%
Production Systems	12,143		9,831		24%
Other	(635)		(606)		n/m
	$36,289		$33,135		10%
Pretax Segment Operating Income
Digital & Integration	$1,408		$1,257		12%
Reservoir Performance	1,452		1,263		15%
Well Construction	2,826		2,932		-4%
Production Systems	1,898		1,245		52%
Other	(263)		(174)		n/m
	$7,321		$6,523		12%
Pretax Segment Operating Margin
Digital & Integration	33.1%		32.5%		67 bps
Reservoir Performance	20.2%		19.2%		99 bps
Well Construction	21.2%		21.8%		-59 bps
Production Systems	15.6%		12.7%		297 bps
Other	n/m		n/m		n/m
	20.2%		19.7%		49 bps
Adjusted EBITDA
Digital & Integration	$2,074		$1,847		12%
Reservoir Performance	1,841		1,646		12%
Well Construction	3,461		3,514		-1%
Production Systems	2,242		1,569		43%
Other	18		102		n/m
	$9,636		$8,678		11%
Corporate & other	(566)		(571)		n/m
	$9,070		$8,107		12%
Adjusted EBITDA Margin
Digital & Integration	48.8%		47.7%		111 bps
Reservoir Performance	25.7%		25.1%		57 bps
Well Construction	25.9%		26.1%		-16 bps
Production Systems	18.5%		16.0%		251 bps
Other	n/m		n/m		n/m
	26.6%		26.2%		37 bps
Corporate & other	n/m		n/m		n/m
	25.0%		24.5%		52 bps
SLB acquired the Aker subsea business during the fourth quarter of 2023 in connection with the formation of the OneSubsea joint venture. The acquired business generated revenue of $1.93 billion during the full year of 2024 and $484 million during the fourth quarter of 2023. Excluding the impact of this acquisition, SLB's full-year 2024 revenue increased 5% year on year and Production Systems full-year 2024 revenue increased 9% year on year.
n/m = not meaningful

	(Stated in millions)
	Twelve Months Ended
	Dec. 31, 2024		Dec. 31, 2023		Change
Revenue by Geography
North America	$6,680		$6,727		-1%
Latin America	6,719		6,645		1%
Europe & Africa*	9,671		8,525		13%
Middle East & Asia	13,026		11,019		18%
Other	193		219		n/m
	$36,289		$33,135		10%
International	$29,415		$26,188		12%
North America	6,680		6,727		-1%
Other	194		220		n/m
	$36,289		$33,135		10%
Pretax Segment Operating Income
International	$6,291		$5,486		15%
North America	1,134		1,157		-2%
Other	(104)		(120)		n/m
	$7,321		$6,523		12%
Pretax Segment Operating Income Margin
International	21.4%		20.9%		44 bps
North America	17.0%		17.2%		-23 bps
Other	n/m		n/m		n/m
	20.2%		19.7%		49 bps
Adjusted EBITDA
International	$7,900		$6,988		13%
North America	1,592		1,559		2%
Other	144		131		n/m
	$9,636		$8,678		11%
Corporate & other	(566)		(571)		n/m
	$9,070		$8,107		12%
Adjusted EBITDA Margin
International	26.9%		26.7%		17 bps
North America	23.8%		23.2%		66 bps
Other	n/m		n/m		n/m
	26.6%		26.2%		37 bps
Corporate & other	n/m		n/m		n/m
	25.0%		24.5%		52 bps
*Includes Russia and the Caspian region
n/m = not meaningful

Consistent Fourth-Quarter and Full-Year Performance Despite Macro Headwinds

"2024 was a strong year for SLB as we successfully navigated evolving market conditions to deliver revenue and EBITDA growth, margin expansion and solid free cash flow," said SLB Chief Executive Officer Olivier Le Peuch.

"Year on year, revenue increased by 10% and adjusted EBITDA grew by 12%, while we generated $3.99 billion in free cash flow, enabling us to return $3.27 billion to shareholders and reduce net debt by $571 million. These results demonstrate SLB's ability to deliver consistent financial performance despite moderating upstream investment growth, driven by our global scale, unmatched digital offerings and ongoing focus on cost optimization.

"Our full-year results were highlighted by 12% international revenue growth. This performance was led by the Middle East & Asia and Europe & Africa, which grew 18% and 13%, respectively. The Middle East & Asia achieved record revenues, while growth in Europe & Africa was bolstered by the acquired Aker subsea business. Excluding this acquired business, international revenue increased 7% year over year, outperforming the rig count over the same period.

"Sequentially, fourth-quarter revenue grew slightly, driven by digital sales in North America and higher activity in the Middle East, Europe and North Africa. On a divisional basis, Digital & Integration led revenue performance, driven by increased demand for digital products and solutions, while Production Systems benefited from strong backlog conversion as customers continued to invest in maximizing recovery from existing assets," Le Peuch said.

Production and Recovery Becoming a Pathway to Long-Term Outperformance

"On a full-year basis, our Core divisions - Reservoir Performance, Well Construction and Production Systems - delivered 9% revenue growth, led by 24% growth in Production Systems, largely due to the subsea acquisition. Production Systems grew 9% organically due to double-digit increases in surface systems, completions and artificial lift. Reservoir Performance also delivered 9% growth, underpinned by strong stimulation and intervention activity in the production space.

"Our fit-for-basin approach, domain expertise and integration capabilities have established us as the performance partner of choice for addressing the operating challenges our customers face throughout the life cycle of their assets. As operators across the industry increasingly prioritize production and recovery, our strengths are more critical than ever.

"With the anticipated completion of our announced acquisition of ChampionX, we are set to further strengthen our production and recovery capabilities, enabling us to deliver even greater value to our customers. This strategic acquisition will also enhance the resilience of the SLB portfolio, providing some stability against the cycles in the years to come.

Digital Continues to Deliver Highly Accretive Growth with AI and Autonomous Operations Gaining Traction

"Digital & Integration revenue increased 10% year on year, driven by 20% growth in digital, which reached $2.44 billion for the year. Accelerated adoption of our digital technologies marked a milestone year, highlighted by strategic collaborations with cross-industry leaders, the launch of the Lumi™ data and AI platform, new Performance Live™ centers to enable remote operations, and the achievement of fully autonomous drilling operations.

"AI is the X factor for our industry, and I am confident that SLB will continue to be a leader in this area, enabling us to deliver sustained outperformance for our customers, partners and shareholders," Le Peuch said.

Long-Term Fundamentals Will Support Oil and Gas Investment

"While upstream investment growth will remain subdued in the short term due to global oversupply, we anticipate the oil supply imbalance will gradually abate. Global economic growth and a heightened focus on energy security, coupled with rising energy demand from AI and data centers will support the investment outlook for the oil and gas industry throughout the rest of the decade.

"In our Core business, we are making unmatched contributions to the discovery, development and extraction of oil and gas reserves, fueling global energy supply. We have the leading offering in Digital. And we are pursuing a meaningful opportunity in New Energy and decarbonization, where we have established a differentiated market position. Together, this is laying a strong foundation for our business, and SLB is poised to create enduring value for our customers and shareholders," Le Peuch said.

Total Return to Shareholders Increasing to $4 Billion in 2025

"SLB remains committed to expanding EBITDA margins, generating strong cash flows, and increasing returns to shareholders. Given our confidence in the business outlook and our ability to continue generating strong cash flows, we are pleased to announce that our Board of Directors has approved a 3.6% increase to our quarterly dividend. Additionally, as we believe our stock is undervalued relative to the strength of our business, we entered into accelerated share repurchase (ASR) transactions to repurchase $2.3 billion of our company's common stock. This positions us to increase total return to shareholders from $3.3 billion in 2024 to a minimum of $4 billion in 2025," Le Peuch concluded.

Other Events

During the quarter, SLB repurchased 11.8 million shares of its common stock for a total purchase price of $501 million. For the full-year 2024, SLB repurchased a total of 38.4 million shares of its common stock for a total purchase price of $1.74 billion.

On December 20, 2024, SLB entered into ASR transactions to repurchase $2.3 billion of its common stock. Under the terms of the ASR agreements, on January 13, 2025, SLB received an initial share delivery of approximately 80% of the shares to be repurchased, based on the closing price per share of its common stock on the preceding day. SLB expects the remainder of the shares to be delivered no later than the end of May 2025. Under certain circumstances, SLB may be required to deliver shares or pay cash, at its option, upon settlement of the ASR agreements. The total number of shares ultimately purchased under the ASR agreements will depend upon the final settlement and will be based on volume-weighted average prices of SLB's common stock during the terms of the ASR transactions, less a discount.

On January 16, 2025, SLB's Board of Directors approved a 3.6% increase in SLB's quarterly cash dividend from $0.275 per share of outstanding common stock to $0.285 per share, beginning with the dividend payable on April 3, 2025, to stockholders of record on February 5, 2025.

Fourth-Quarter Revenue by Geographical Area

	(Stated in millions)
	Three Months Ended						Change
	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		Sequential		Year-on-year
North America	$1,752		$1,687		$1,641		4%		7%
Latin America	1,634		1,689		1,722		-3%		-5%
Europe & Africa*	2,472		2,434		2,429		2%		2%
Middle East & Asia	3,376		3,302		3,141		2%		7%
Eliminations & other	49		47		56		n/m		n/m
	$9,284		$9,159		$8,990		1%		3%
International	$7,483		$7,425		$7,293		1%		3%
North America	$1,752		$1,687		$1,641		4%		7%
*Includes Russia and the Caspian region
n/m = not meaningful

International

Revenue in Latin America of $1.63 billion declined 3% sequentially, driven primarily by reduced drilling activity in Mexico. This decline was partially offset by increased production system sales in Brazil. Year on year, revenue decreased 5%, reflecting reduced drilling in Mexico, partially offset by robust activity in Argentina and higher production system sales in Brazil.

Europe & Africa revenue of $2.47 billion rose 2% sequentially, supported by increased activity in Europe and North Africa, despite lower subsea production system sales in Scandinavia. Year on year, revenue also grew 2%, with stronger performances in North Africa and Europe offsetting weaker results in West Africa.

Revenue in the Middle East & Asia of $3.38 billion increased 2% sequentially, driven by strong activity in the United Arab Emirates, higher drilling in Egypt, and increased stimulation, intervention and evaluation activity in Qatar. These gains offset weaker performance in Saudi Arabia and Australia. Year on year, revenue grew 7%, reflecting robust activity in the United Arab Emirates, Iraq, Kuwait, East Asia, China and Indonesia, partially offset by reduced drilling in India.

North America

North America revenue of $1.75 billion increased 4% sequentially due to higher digital sales and increased sales of production systems in the U.S. Gulf of Mexico, as well as higher digital sales and increased drilling activity in U.S. land and Canada. Year on year, revenue rose 7%, driven by growth in offshore activity in the U.S. Gulf of Mexico and higher Asset Performance Solutions (APS) revenue in Canada, despite lower drilling activity in U.S. land.

Fourth-Quarter Results by Division

Digital & Integration

	(Stated in millions)
	Three Months Ended						Change
	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		Sequential		Year-on-year
Revenue
International	$824		$830		$790		-1%		4%
North America	331		258		257		28%		29%
Other	1		-		2		n/m		n/m
	$1,156		$1,088		$1,049		6%		10%
Pretax operating income	$442		$386		$356		14%		24%
Pretax operating margin	38.3%		35.5%		34.0%		274 bps		430 bps
n/m = not meaningful

Digital & Integration revenue of $1.16 billion increased 6% sequentially driven by 10% growth in digital revenue, supported by greater adoption of digital technologies and higher sales of exploration data, particularly in the U.S. Gulf of Mexico. APS revenue was flat sequentially. Year on year, revenue grew 10%, with digital revenue up 21%, offsetting a 2% decline in APS revenue.

Digital & Integration pretax operating margin of 38% expanded 274 bps sequentially, reflecting improved profitability in digital from higher sales and cost efficiencies. Year on year, margin expanded 430 bps due to stronger digital performance, partially offset by lower APS profitability stemming from higher amortization expenses and lower gas prices.

Reservoir Performance

	(Stated in millions)
	Three Months Ended						Change
	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		Sequential		Year-on-year
Revenue
International	$1,669		$1,676		$1,611		-		4%
North America	139		145		123		-4%		13%
Other	2		2		1		n/m		n/m
	$1,810		$1,823		$1,735		-1%		4%
Pretax operating income	$370		$367		$371		1%		-
Pretax operating margin	20.5%		20.1%		21.4%		35 bps		-90 bps
n/m = not meaningful

Reservoir Performance revenue of $1.81 billion declined 1% sequentially driven by reduced intervention and stimulation activity, partially offset by stronger evaluation activity. Revenue was impacted by lower stimulation and intervention work in Saudi Arabia, which was offset by increased activity in the rest of the Middle East & Asia and North America. Year on year, revenue increased 4% due to higher intervention and stimulation activity, despite lower evaluation revenue.

Reservoir Performance pretax operating margin of 20% expanded 35 bps sequentially, reflecting improved profitability in evaluation services, partially offset by weaker performance in intervention. Year on year, the margin decreased 90 bps due to an unfavorable technology mix.

Well Construction

	(Stated in millions)
	Three Months Ended						Change
	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		Sequential		Year-on-year
Revenue
International	$2,625		$2,675		$2,748		-2%		-4%
North America	583		581		614		-		-5%
Other	59		56		64		n/m		n/m
	$3,267		$3,312		$3,426		-1%		-5%
Pretax operating income	$681		$714		$770		-5%		-12%
Pretax operating margin	20.8%		21.5%		22.5%		-70 bps		-162 bps
n/m = not meaningful

Well Construction revenue of $3.27 billion declined 1% sequentially due to reduced drilling activity in Mexico and Saudi Arabia, partially mitigated by higher activity across the rest of the Middle East & Asia. Year on year, revenue declined 5%, reflecting lower drilling activity in Mexico, Saudi Arabia and U.S. land, partially offset by improved performance in the rest of the Middle East & Asia.

Well Construction pretax operating margin of 21% declined 70 bps sequentially and 162 bps year on year due to reduced activity across North America and international markets.

Production Systems

	(Stated in millions)
	Three Months Ended						Change
	Dec. 31, 2024		Sept. 30, 2024		Dec. 31, 2023		Sequential		Year-on-year
Revenue
International	$2,471		$2,373		$2,276		4%		9%
North America	716		723		666		-1%		7%
Other	10		7		2		n/m		n/m
	$3,197		$3,103		$2,944		3%		9%
Pretax operating income	$506		$519		$442		-3%		14%
Pretax operating margin	15.8%		16.7%		15.0%		-93 bps		79 bps
n/m = not meaningful

Production Systems revenue of $3.20 billion increased 3% sequentially with growth led by higher international sales of artificial lift, midstream production systems and completions, partially offset by reduced sales of subsea production systems. Year on year, revenue grew 9%, mainly due to strong sales both in North America and internationally across most of the portfolio.

Production Systems pretax operating margin of 16% decreased 93 bps sequentially due to lower profitability in subsea production systems, partially offset by improved profitability in artificial lift and midstream production systems. Year on year, pretax operating margin expanded 79 bps due to improved profitability across a majority of the business lines.

Quarterly Highlights

CORE

Contract Awards

SLB continues to win new contract awards that align with SLB's strengths in the Core, particularly in the international and offshore basins. Notable highlights include the following:

• SLB has been awarded a series of major drilling contracts by Shell to support capital-efficient energy development across its deep- and ultradeepwater assets in the UK North Sea, Trinidad and Tobago, the Gulf of Mexico and others. The projects, which will be delivered over a three-year time frame, will combine SLB's AI-enabled digital drilling capabilities with its expertise in ultradeepwater environments. The scope of the contracts will include digital directional drilling services and hardware, logging while drilling (LWD), surface logging, cementing, drilling and completions fluids, completions, and wireline services. Each project will be managed through SLB's Performance Live centers.

• SLB OneSubsea, alongside Subsea Integration Alliance partner Subsea7, has signed a global frame agreement with bp, forming a platform to combine subsea expertise more effectively across a portfolio of future projects. This collaboration combines capabilities throughout all project stages - from initial concept development to full-field life cycle - enabling enhanced subsea project performance. Through early engagement and new ways of working, SLB OneSubsea and its alliance partners will support bp in achieving accelerated project delivery, standardization, simplification and reduced total cost of ownership, ultimately improving subsea project economics while embedding quality and driving sustainable outcomes in subsea field operations.

• SLB has been awarded, after a competitive tender, a new contract by Petrobras for integrated services across all offshore fields operated by Petrobras in Brazil. SLB will oversee the construction of more than 100 deepwater wells, utilizing advanced drilling, cementing and drilling fluid technologies on up to nine ultradeepwater rigs.

• Offshore Brazil, SLB OneSubsea was awarded multiple contracts by Petrobras. Following a competitive tender, SLB OneSubsea was awarded a contract to provide two subsea production manifolds, one electrohydraulic distribution unit and additional related services for the Roncador project. Additionally, SLB OneSubsea was awarded a contract for two subsea raw seawater injection (RWI) systems to increase recovery from the Búzios field. Under the contract, SLB OneSubsea will provide two complete subsea RWI systems to support Petrobras' FPSOs P-74 and P-75, and they will each consist of a subsea seawater injection pump, umbilical system and topside variable speed drive.

• In Italy, TotalEnergies awarded SLB a four-year contract for the provision of completions and artificial lift equipment and services in Tempa Rossa Field, one of the largest land fields in Europe with an estimated volume of 200 million barrels and a target production of over 50,000 barrels per day. The field presents several technical challenges which require custom-designed technologies to maximize production and recovery. SLB was selected for its ability to deliver fit-for-basin solutions using its global reach and the expertise of the local team.

• In Oman, Petroleum Development Oman has awarded SLB a five-year contract for well placement services throughout its Block 6 concession. SLB will provide multiple key technologies, including PowerDrive Orbit™ system and the PeriScope HD™ service, across a variety of gas and oil fields, for both development and exploration wells.

• Also in Oman, Daleel Petroleum LLC awarded SLB a five-year contract for advanced measurements-while-drilling (MWD) and directional drilling services in its Block 5 concession, with an expected delivery of more than 250 wells. SLB was able to secure this award through market-leading fit-for-basin MWD, LWD and rotary steerable system technologies, which have improved well delivery efficiencies and service quality reliability.

Technology and Innovation

Notable technology introductions and deployment in the quarter include the following:

• SLB introduced Neuro™ autonomous geosteering, which dynamically responds to subsurface complexities to drill more efficient, higher-performing wells, while reducing the carbon footprint of the drilling operations. Using AI, Neuro autonomous geosteering integrates and interprets complex real-time subsurface information to autonomously guide the drill bit through the most productive layer or "sweet spot" of the reservoir.

• SLB launched Stream™ high-speed intelligent telemetry that increases drilling confidence and performance for complex wells. Designed to overcome the bottlenecks and limitations of conventional mud pulse, Stream telemetry combines proprietary AI algorithms with SLB's TruLink™ definitive dynamic survey-while-drilling service. This provides uninterrupted, high-speed, high-fidelity real-time subsurface measurements with no data limitations, regardless of depth, in even the most challenging conditions. Stream telemetry has already been deployed in 14 countries, with more than 370 runs and more than 1.5 million feet drilled.

• Offshore United States, SLB helped Chevron access resources in a high-pressure deepwater area of the Gulf of Mexico. New technologies deployed included 20,000-psi-rated trees, manifolds, connections, controls, and an advanced boosting system, presenting new opportunities for resource extraction in high-pressure environments.

• In Kuwait, SLB and Kuwait Oil Company tackled significant challenges in the mature Bahrah Field by using an advanced openhole multistage completion design and OpenPath Flex™ acid stimulation service. The project achieved Kuwait's longest lateral at 13,800 feet, incorporating 29 treatment stages with up to three acid fracturing stages daily. Kinetix™ software enhanced fault isolation, while DataFRAC™ services provided comprehensive exploratory area assessments, improving the geomechanical earth model. These innovative methods, including the use of a frac tree for isolation, eliminated HSE risks associated with isolation tools and set a new benchmark for operational efficiency and safety in acid fracturing operations.

• In Malaysia, SLB and Hibiscus Oil and Gas Malaysia Limited integrated a directional drilling solution using SLB Smith Bits and PowerDrive X6™ rotary steerable system in the Bunga Orkid project that resulted in the longest extended-reach drilling well in Malaysia at a depth of 6,970 meters. SLB provided drilling, measurements, geoservices, and drilling fluid, as well as proactive real-time monitoring and intervention during drilling and tripping using our K&M Technology Group. Bottomhole assembly optimization and proven techniques were implemented based on a similar offset well.

• Also in Malaysia, SLB and PETRONAS Carigali Sdn. Bhd. successfully implemented a matrix stimulation treatment using the OneSTEP EF™ efficient, low-risk sandstone stimulation solution in two oil-producing layers in the Dulang oil field. This innovative approach improved operational efficiency, increasing oil production by 400% without increasing the water cut. This success underscores the outstanding collaboration between PETRONAS Carigali and SLB in identifying the issues and developing fit-for-basin solutions.

• In Western Australia, SLB deployed drilling services for Strike Energy to successfully drill the easternmost and deepest well to date in the Kingia-High Cliff Sandstones of Perth Basin, enabling the discovery of two significant gas resources. With a record total depth of 5,225 meters, it is the deepest onshore well in Australia.

DIGITAL

SLB is deploying digital technology at scale, partnering with customers to migrate their technology and workflows into the cloud, to embrace new AI-enabled capabilities, and to leverage insights to elevate their performance. Notable highlights include the following:

• In the United States, SLB, Equinor and Sensia collaborated to enhance Equinor's subsurface and surface modeling workflows for one of Equinor's non-operated assets in the Gulf of Mexico. The improved model links geology, geophysics and engineering, replacing a manual process with automated live updates. This was achieved by connecting Petrel™ subsurface software, Intersect™ high-resolution reservoir simulator and Pipesim™ steady-state multiphase flow simulator. A link to the production database in OFM™ well and reservoir analysis software enabled production history updates to the dynamic reservoir model. In tests, the subsurface model updates were improved from months to weeks and days, and simulation runtimes were reduced from nine hours to 36 minutes.

• In Suriname, Staatsolie Maatschappij Suriname N.V. has awarded SLB a four-year contract for the Delfi™ digital platform to increase the efficiency of its offshore teams. The Delfi platform will bring both data and applications into the cloud to foster collaboration and derive further insights. Coupled with a previous contract award to SLB for the country's National Data Repository, this platform will be the digital foundation for Suriname's Center of Excellence, which was formed to maximize the value of the country's hydrocarbon resources.