SLB (NYSE:SLB) reported fourth-quarter earnings that came in ahead of market forecasts, helped by a full quarter of contributions from ChampionX following the completion of its acquisition last summer.
The Texas-based energy technology group finalized the $7.75 billion purchase of ChampionX in July, a move aimed at strengthening SLB’s production systems business and expanding its footprint in chemicals and oilfield automation technologies. While ChampionX contributed only two months of results in the third quarter, the latest period reflects a full three months of integration.
During the quarter ended December 31, ChampionX generated $879 million in revenue and delivered $206 million in adjusted core earnings, according to SLB.
At the group level, SLB posted revenue of $9.75 billion, representing year-on-year growth of 5% and exceeding analyst expectations of $9.55 billion. Adjusted earnings before interest, taxes, depreciation and amortization totaled $2.38 billion, down 2.1% from the prior year but still above Bloomberg consensus estimates of $2.31 billion.
Adjusted earnings per share reached $0.78 for the quarter, also coming in ahead of forecasts. SLB noted that excluding the impact of the ChampionX acquisition, its global revenue declined 4% compared with the same period last year.
Shares of SLB edged slightly higher in U.S. premarket trading on Friday following the release.