ChampionX Acquisition Synergies
Q: Can you break down the $400 million in synergies from the ChampionX deal and why you're confident in revenue synergies?
A: We expect $400 million in annual synergies within the first three years, with 70% to 80% achieved in the second year, making the transaction accretive to earnings per share in year two. " Approximately 75% of synergies are related to costs and 25% to initial revenue synergies. " About half of the cost synergies come from internalizing our own chemical spend, leading to significant savings, and the other half from G&A and operating cost savings. "

Saudi Arabia Spending Shift
Q: How will the shift in Saudi Arabia from offshore oil to onshore gas spending impact SLB?
A: Saudi Arabia is increasing its gas capacity by 60% by 2030, resulting in a net addition of 60 onshore rigs this year, offsetting the suspension of 20 to 22 offshore jackups. " " " This shift from offshore oil to onshore gas aligns with our strengths, as we're well-positioned in onshore and gas projects. " " Consequently, this change won't impact our growth ambitions in Saudi Arabia or alter our Middle East guidance. "

Market Cycle Outlook
Q: Where are we in the current cycle, and how do you view its duration and breadth?
A: The cycle's attributes—breadth, resilience, and longevity—are fully in place, driven by strong oil and gas demand and energy security priorities. " Activity is supported by investments in capacity expansion across short-cycle and long-cycle projects, including deepwater and shallow. " Customer sentiment is trending more positively than 6–12 months ago, with a stronger pipeline of projects that will prolong the cycle beyond previous expectations. "

ChampionX Acquisition Strategy
Q: Is the ChampionX acquisition due to expectations of upstream spending slowing, or is it about increasing OpEx opportunities?
A: It's not about upstream CapEx slowing but about seizing growth in the production recovery market, which includes production chemicals and lift solutions. " We see increased demand and opportunities in this market, responding to customers' needs for production optimization and efficiency gains through OpEx investments. " The acquisition aligns with our strategy to innovate and integrate solutions that enhance production operations. "

EBITDA Margin Outlook
Q: How should we think about EBITDA margins for the rest of the year?
A: We have increased EBITDA margins year-on-year for 13 consecutive quarters and expect this trend to continue throughout the year. " In Digital & Integration, margins are typically lowest in Q1 due to seasonally lower digital sales. " We anticipate digital sales to increase each quarter, contributing to overall Digital & Integration margins above 30% for the full year. "

Digital Adoption and Growth
Q: How is the adoption of the DELFI platform progressing, and how do you see it trending?
A: Adoption is trending favorably, with enhancements in digital operations, cloud adoption, data, and AI being delivered quarterly. " We have renewed our ambition to achieve high-teens growth in digital this year. " Customers are realizing the need to unlock efficiency, accelerate cycles, and extract lower-carbon solutions, leading to quarter-over-quarter expansion in digital adoption. "

Asia Growth Opportunities
Q: What is driving growth in Asia, and which regions stand out?
A: Asia is experiencing significant investment driven by energy security priorities, stabilizing oil production, and accelerating gas development. " Regions like Indonesia, Malaysia, offshore China, Bangladesh, and India are seeing new exploration and appraisal activities, including participation from new entrants. " This wave of investments offers opportunities in both offshore and onshore projects, with a focus on preventing production decline and leveraging intervention and recovery technologies. "

North America Outlook
Q: How do you see the North America market developing over the course of the year?
A: We anticipate North America growth to be more muted than initially expected due to market softness, low gas prices, capital discipline, and consolidation. " We expect low single-digit sequential growth and aim to outperform the market by posting muted but positive growth. " Any shortfall will be offset by international growth, where we see resilience and further potential. "

Well Construction Margins
Q: Should we expect Well Construction margins to be flat for the year?
A: While Well Construction margins were flat year-on-year in Q1, we expect margin expansion for the full year. " Lower activity in North America presents a headwind, but international margin expansion will drive growth. " As the year progresses, you'll see year-on-year growth in Well Construction margins due to timing and quarterly adjustments. "

Carbon Capture Strategy
Q: How do you see the carbon capture business developing, and how does the combination with Aker enhance this?
A: We view carbon capture and sequestration as a highly attractive market adjacent to our space. " Our technology and customer access position us well in sequestration, and we've invested in capture technologies to disrupt economics. " Aker Carbon Capture brings a commercial solution platform that we'll use to expand and deploy our capabilities globally, combining capture and sequestration offerings for customers. "