- SLB’s fourth-quarter adjusted earnings per share (EPS) exceeded expectations, coming in at $0.92 compared to the estimated $0.90 and last year’s $0.86.
- Total revenue reached $9.28 billion, a 3.3% increase year-over-year, also surpassing the estimated $9.18 billion.
- Digital & Integration revenue grew by 10% year-over-year to $1.16 billion, exceeding the forecast of $1.13 billion.
- Reservoir Performance revenue experienced a slight increase of 4.3% year-over-year to $1.81 billion, close to the estimate of $1.82 billion.
- Production Systems revenue was up by 8.6% year-over-year, totaling $3.20 billion, which surpassed the expectation of $3.13 billion.
- Well Construction revenue was stable at $3.27 billion, aligning with estimates but experiencing a 4.6% decrease year-over-year.
- Adjusted EBITDA grew by 4.6% year-over-year to $2.38 billion, slightly above the estimate of $2.36 billion.
- Cash flow from operations decreased by 21% year-over-year to $2.39 billion, meeting the estimated figure.
- Capital expenditure rose by 2.5% year-over-year to $609 million, exceeding the expected $555.6 million.
- Free cash flow dropped by 28% year-over-year to $1.63 billion, falling short of the projected $1.69 billion.
- Net debt decreased by 12% quarter-over-quarter to $7.41 billion, greater than the estimate of $7.2 billion.
- SLB demonstrated consistent financial performance despite slowed upstream investment, owing to its global scale, digital offerings, and cost optimization.
- Fourth-quarter revenue grew due to increased digital sales in North America and heightened activities in the Middle East, Europe, and North Africa.
- The Middle East & Asia and Europe & Africa regions led the performance with revenue growth of 18% and 13%, respectively.
- Digital & Integration stood out with strong revenue performance driven by high demand for digital products, while Production Systems benefited from sustained customer investment in asset recovery.
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Schlumberger Ltd on Smartkarma
Analysts on Smartkarma are closely monitoring Schlumberger Ltd, providing valuable insights and predictions on the company’s performance. Suhas Reddy‘s [Pre Earnings Options Flash] report indicates a neutral sentiment ahead of Q4 results, highlighting the strong earnings expected despite macroeconomic challenges. The options market shows a bullish sentiment, with calls concentrated at specific strikes, portraying optimism among investors.
In another report by Suhas Reddy, [Earnings Preview], Schlumberger’s potential to beat expectations in a sluggish Q4 is examined. The company’s focus on carbon capture and deepwater operations, coupled with revenue and EPS growth projections, presents a positive outlook. Analysts remain optimistic about Schlumberger’s ability to outperform, considering its recent achievements and ongoing strategic developments.
A look at Schlumberger Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Schlumberger Ltd has a positive long-term outlook. With solid scores in Dividend and Growth, the company is positioned well for future profitability and potential expansion. Additionally, its Resilience score suggests a level of stability in varying market conditions, enhancing its attractiveness to investors. However, the company’s Value and Momentum scores, though not as high, still indicate a decent standing in terms of valuation and market momentum.
Schlumberger Limited, an oil services company, remains a strong player in the industry. Providing a range of services to the international petroleum sector, including technology, project management, and data solutions, the company’s diverse offerings contribute to its overall resilience and growth potential. With a focus on dividends and growth, Schlumberger Ltd exhibits a commitment to rewarding investors while striving for expansion and innovation in the oil services market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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