The world’s largest oil fields service company SLB (formerly known as Schlumberger) reported mixed third quarter earnings on lower-than-expected revenue Friday before the market opened. SLB EPS beat by a penny while total revenues came in roughly as expected. $SLB stock was down 4% after the release with concerns about and activity in the North American onshore market may have plateaued this year. Q3 net income rose to $1.12B, or $0.78/share, from $907M, or $0.63/share, in the year ago quarter, driven by sustained growth in the international markets, where the company posted its ninth consecutive quarter of double-digit Y/Y growth.
Q3 total revenues rose 11% Y/Y and 3% Q/Q to $8.31B, as international revenue jumped 12% Y/Y and 5% Q/Q to $6.61B. North America revenue rose 6% Y/Y but fell 6% Q/Q to $1.64B, with reduced drilling activity in the U.S. and the Gulf of Mexico. The oil service giant’s peers Baker Hughes (BKR) and Halliburton (HAL) report next week.
Schlumberger Ltd NYSE: SLB Reported Before Open Friday
Schlumberger Q3 23 Earnings
Q3 2023 earnings release at 6:15 a.m. ET; conference call at 8:30 a.m ET
- Adj EPS: $0.78 (est $0.77)
- Revenue: $8.31B (est $8.32B)
- Adj. EBITDA $2.08B (est $2.05B)
- Well Construction revenues rose 11% Y/Y and 2% Q/Q to $3.43B, matching FactSet consensus estimates
- Production Systems revenues rose 10% Y/Y and 2% Q/Q to $2.37B, beating $2.36B FactSet consensus estimates
- Reservoir Performance revenues rose 15% Y/Y and 2% Q/Q to $1.68B, which missed $1.71B FactSet consensus estimates
- Board Approved Quarterly Cash Dividend Of $0.25 Per Share
SLB: Stock Market Reaction
- $57.52 ▼ -2.44 (-4.08%) Pre-market
- $57.52 ▲ +11.79 (+25.8%) past year
- $57.52 ▲ +4.55 (+8.6%) past 5 years
- 52wk High $62.12
- 52wk Low $42.73
Outlook
“We believe the market fundamentals remain very compelling for our business,” CEO Olivier Le Peuch said. “The oil and gas industry continues to benefit from a multiyear growth cycle that has shifted to the international and offshore markets where we are the clear leader.”
Oil Prices
SLB Peer’s Earnings
About Schlumberger
SLB (formerly Schlumberger) NV is the world’s largest oil fields service company and provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. It operates through the following business segments: Digital and Integration, Reservoir Performance, Well Construction, and Production Systems. “With expertise in more than 120 countries, we collaborate to create technology that unlocks access to energy for the benefit of all.”
“Overall, 2022 was transformative for SLB as we set new safety, operational, and performance benchmarks for our customers and strengthened our market position both internationally and in North America. We launched our bold new brand identity, reinforcing our leadership position in energy technology, digital, and sustainability, and demonstrated our ability to deliver superior earnings in this early phase of a structural upcycle in energy.” SLB CEO Olivier Le Peuch commented,
Source: SLB
Live From The Pit
From The TradersCommunity News Desk