Schlumberger Earnings Jump 18% With Record U.S. Oil Production

The world’s largest oil fields service company Schlumberger reported largely in line Q3 earnings Friday. North American revenue jumped last quarter 43% to $3.14 billion and since then U.S. oil production has climbed to 11.20 mbpd.

The world’s largest oil fields service company Schlumberger reported largely in line Q3 earnings Friday. North American revenue jumped last quarter 43% to $3.14 billion and since then U.S. oil production has climbed to 11.20 mbpd

 

SLB Automated Drilling

Schlumberger Ltd NYSE: SLB Reported Before Open Friday

$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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