ChampionX's acquisition boosts SLB's fourth quarter profits beyond expectations, announces a $4 billion shareholder dividend plan.

Thanks to the acquisition of ChampionX, the world's largest oilfield service company SLB (SLB.US) announced fourth-quarter earnings that exceeded expectations on Friday and also announced plans to return $4 billion to shareholders this year through dividends and stock buybacks. It is understood that in July last year, SLB completed the acquisition of ChampionX in a $7.75 billion all-stock transaction, thereby adding production chemicals and artificial lift technologies to its business portfolio. As customers cut new well spending and prioritize shareholder returns, oilfield service providers are following the footsteps of energy producers, responding to operational and pricing pressures through mergers and acquisitions. This acquisition brought SLB $879 million in revenue and $206 million in adjusted core earnings in the fourth quarter, driving quarterly revenue in North America up by approximately 26% to $2.21 billion, despite the overall soft market in the region. This also pushed SLB's revenue for the three months ending December 31 up by 5% year-on-year to $9.75 billion, higher than the market's expected $9.55 billion, with adjusted earnings per share reaching $0.78, higher than the market average expectation of $0.74. In addition, the SLB board approved a 3.5% increase in quarterly cash dividends on Wednesday, with the new dividend set to be distributed on April 2, with the record date being February 11, and a commitment to return over $4 billion to shareholders by 2026. Key region challenges are now in the past, with investors optimistic about the prospects of business in Venezuela. SLB CEO Olivier LePeuch also mentioned in the financial report that the challenges faced in certain key regions are now in the past, and recovery is expected by 2026. LePeuch stated that the company had faced challenges in 2025 due to declining commodity prices, political uncertainties with GEO Group Inc, and an oversupply in the oil market. He said, "As we enter 2026, we believe the headwinds experienced in key regions in 2025 are now in the past." The company expects drilling activities to increase in the Middle East region and emphasized, "Our business positioning in this region puts us in a favorable position to seize recovery opportunities." Recently, following US involvement in the situation in Venezuela, SLB and its peers have been closely watched by the market. The company still maintains a presence in Venezuela, and with large US oil companies returning to the market, demand is expected to significantly increase. Since the arrest of Venezuelan President Nicolas Maduro on January 3, SLB's stock price has risen by 23%. Investors are betting that as the country's struggling oil industry is rebuilt, the company will be a major beneficiary. Stifel analyst Stephen Gengaro pointed out that SLB and its competitor Halliburton (HAL.US) are in the most advantageous position in benefiting from investments in Venezuela. Earlier this week, Halliburton CEO Jeff Miller stated during an earnings conference call that the company can rapidly expand its business in Venezuela and is working to obtain US approvals to operate in the country.