Schlumberger Beat Earnings Estimates, Hope For Higher Oil Prices

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.

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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