Earnings Reports

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The world's largest oil fields service company Schlumberger reported better than expected earnings Friday. On a sequential basis, $SLB revenue was 4% due to lower activity and pricing for most businesses within the Production and Cameron segments in North America land.

 
Schlumberger Vintage

Schlumberger Ltd NYSE: SLB Reported Before Open Friday

$0.39 EPS Beat $0.36 Forecast AND $8.5 Billion Beat $8.062 Billion Forecast in Revenue 

Earnings 

Schlumberger Ltd. (NYSE: SLB) reported fourth-quarter earnings on a GAAP basis, of net income of $538 million or $0.39 per share compared to a net loss of $2.25 billion or $1.63 per share in the prior-year period. Adjusted net income dropped 25% year-over-year to $498 million or $0.36 per share. up 18% to $644 million or $0.46 per share, excluding charges and credits. Revenue grew 8% to $8.5 billion. The Street expected to report  Schlumberger earnings per share to fall 25% to 36 cents. Revenue was seen slipping 1% to $8.062 billion. 

With big falls in oil but record production in both oil and gas this report is indicative for the energy sector. 

Schlumberger Ltd NYSE: SLB

MarketReaction> Pre-market $43.62 USD +2.25 (+5.44%)

Highlights

  • During the fourth quarter, revenue in North America remained flat compared to the prior-year period.
  • International revenue increased by 1%.
  • Excluding Cameron, revenue in North America rose by 1% and International revenue grew by 3%.
  • Revenue in the Reservoir Characterization business unit increased 1% year-over-year.
  • During the quarter, the business benefited from several contract wins and new multiclient seismic surveys.
  • The Drilling unit recorded a year-over-year growth in revenue while the Production and Cameron units saw revenue declines.

 SLB Q4 2018 earnings

Schlumberger Chairman and CEO Paal Kibsgaard said, “Looking forward to 2019, we expect a more positive supply- and demand-balance sentiment to lead to a gradual recovery in the price of oil over the course of the year, as the OPEC and Russia cuts take full effect; the effect of lower activity in North America land in the second half of 2018 impacts production growth; the dispensations from the Iran export sanctions expire and are not renewed; and as the US and China continue to work toward a solution to their ongoing trade dispute.”

Schlumberger Q3 Earnings Recap

$0.46 EPS as Forecast on $8.5 Billion Missed $8.60 Billion Forecast in Revenue 

Earnings 

Schlumberger Ltd. (NYSE: SLB) reported third-quarter earnings up 18% to $644 million or $0.46 per share, excluding charges and credits. Revenue grew 8% to $8.5 billion. Higher oil prices boosted demand for its services in North America and overseas.The result matched consensus estimates of an EPS of $0.46, but was less than the estimated, $8.6 billion in revenue. SLB has traded in a 52-week trading range is $58.30 to $80.35. With big recoveries in oil and natural gas prices and record production in both commodities this report is indicative for the energy sector. 

Schlumberger Ltd NYSE: SLB

MarketReaction> Pre-market $59.05 +0.62 (+1.06%))

SLB Earnings Q3 18

 

Highlights

      • Revenue grew 8% to $8.5 billion driven by Artificial Lift and Drilling in the North American area.
      • Sequentially, North America Area revenue rose 2% on robust growth of Drilling products and services on land, which grew 5% sequentially outperforming the 3% increase in US land rig count.
      • Growth was driven by the continued demand for rotary steerable systems in horizontal wells.
      • Revenue in the Latin America Area increased 6% sequentially on a strong performance in the Mexico & Central America GeoMarket as revenue climbed from higher multiclient seismic license sales and increased IDS activity following contract mobilizations in the previous quarter.
      • Peak summer drilling campaigns that benefited the Wireline, Drilling & Measurements, and Testing Services product lines drove revenue from Europe/CIS/Africa Area higher by 2% from last quarter.
      • Revenue in the Middle East & Asia Area rose 2% on the continued ramp-up of LSTK projects in Saudi Arabia and strong IDS activity in Iraq and India.
      • Peak summer activity in Russia that benefited the Wireline and Testing Services product lines drove Reservoir Characterization revenue higher by 2% sequentially.
      • Drilling revenue increased 9% sequentially, while revenue from Production and Cameron remained flat from the previous quarter.
      • On October 18, Schlumberger’s board of directors approved a quarterly cash dividend of $0.50 per share of outstanding common stock. The dividend is payable on January 11, 2019, to stockholders of record on December 5, 2018.

OPEC Oct US Rig Counts

Schlumberger Ltd NYSE: SLB Q2 Earnings Recap

Earnings: 

EPS of 43 cents on revenue of $8.3 billion matcing the forecast 43 cents but revenue lower than the expected $8.34 billion. Land revenue was driven by market share gains and operational efficiency improvements as pricing remained flat, and offshore activity began to recover.

Schlumberger Limited. NYSE: $SLB

Market Reaction >Pre-market 67.30 +0.38 (+0.57%)

Segment Highlights

      • North American revenue jumped 43% to $3.14 billion.
      • Middle East and Asia revenue edged up 1% to $2.37 billion.
      • Europe and Africa revenue rose 2% to $1.78 billion.
      • Latin America revenue fell 12% to $919 million.

Segments

Drilling Group Production Group Reservoir Characterization Group Cameron Group: 

  SLB Earnings Q2 18 

      • Note that comeptitor Halliburton $HAL will be reporting its second-quarter results on July 23.

Source: SLB, AlphaStrret

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