• Schlumberger NV’s adjusted EPS for 1Q was 75c, beating the estimated 74c and showing an increase from 63c year-on-year.
• Revenue for the quarter amounted to $8.71 billion, which aligns with the estimate and represents a 13% increase from last year.
• The Digital & Integration revenue, although falling slightly short of the $973.9 million estimate, still improved by 6.6% year-on-year, racking up to $953 million.
• Reservoir Performance revenue outperformed the estimate of $1.67 billion, with reported revenue of $1.73 billion, a 15% increase from the previous year.
• While the Production Systems and Well Construction revenues were nearly on par with their respective estimates, at $2.82 billion and $3.37 billion respectively, both demonstrated substantial year-on-year growth at 28% and 3.3%.
• Without factoring in the contribution from the newly acquired Aker subsea business, the Production Systems revenue still managed to grow by 6%.
• The adjusted Ebitda for the period came in at $2.06 billion, slightly less than the $2.07 billion estimate but still showing a 15% year-on-year growth.
• The capital expenditure declined by 2.7% year-on-year, totaling $399 million, considerably lower than the estimated $514.6 million.
• Net debt amounted to $8.68 billion, which is higher than the previous quarter by 8.8% but lower than the estimated $8.89 billion.
• The company observed a small dip in revenue by 3% in both North America and international markets due to seasonality.
• Analysts currently rate the company’s stock as 28 buys, 3 holds, and 0 sells.
Schlumberger Ltd on Smartkarma
Analyst coverage of Schlumberger Ltd on Smartkarma has been positive, with reports highlighting key drivers for the company’s growth and resilience in the energy market. Baptista Research‘s report, titled “Schlumberger Limited: Advancements In New Energy Markets & 5 Other Major Drivers,” emphasizes the company’s ability to adapt in a challenging environment. The report discusses strong financial results for the fourth quarter and full year of 2023, indicating robust revenue growth and favorable outlooks for 2024. Baptista Research also delves into factors influencing the company’s stock price and conducts an independent valuation through a Discounted Cash Flow methodology.
Another analyst, Suhas Reddy, provides insights in their report “[Earnings Preview] Intl. & Offshoring Markets to Drive Stunning Earnings for Schlumberger in Q423,” focusing on the anticipated strong performance in international markets and offshore segments driving growth for Schlumberger. The report mentions expectations of revenue growth surpassing 15% year over year in 2023, with pre-tax operating margins in Q4 2023 benefiting from increased digital sales and seasonal product sales. Overall, analyst consensus leans bullish on Schlumberger’s stock, with optimism stemming from the company’s increasing presence in international markets and promising outlook in the offshore sector.
A look at Schlumberger Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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 Smartkarma Smart Scores, Schlumberger Ltd shows a positive long-term outlook. The company scores well in Growth and Momentum, indicating a strong potential for expansion and market traction. With a solid Resilience score, Schlumberger demonstrates durability in the face of market challenges. While the Value and Dividend scores are moderate, the overall outlook suggests a promising future for the oil services company.
Schlumberger Limited, an oil services company, offers a wide array of services to the international petroleum industry. With a focus on technology, project management, and information solutions, as well as advanced acquisition and data processing surveys, Schlumberger caters to a diverse range of client needs in the oil and gas sector. The company’s positive scores in Growth and Momentum highlight its potential for continued success and expansion in the industry.
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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