- SLB’s adjusted earnings per share (EPS) for the first quarter were 72 cents, missing the estimate of 74 cents and down from 75 cents year-on-year.
- The company’s revenue totaled $8.49 billion, a 2.5% decrease from the previous year, falling short of the expected $8.61 billion.
- Digital & Integration revenue increased by 5.6% year-on-year to $1.01 billion, surpassing the estimate of $999 million.
- Reservoir Performance revenue decreased by 1.4% year-on-year to $1.70 billion, slightly missing the expected $1.72 billion.
- Production Systems revenue rose by 4.3% year-on-year to $2.94 billion but was just shy of the $2.95 billion estimate.
- Well Construction revenue fell by 12% year-on-year to $2.98 billion, below the anticipated $3.09 billion.
- Adjusted EBITDA was $2.02 billion, a decline of 1.8% from the previous year, against an estimate of $2.05 billion.
- Adjusted EBITDA margin increased to 23.8%, slightly above the expected 23.7%.
- Net debt rose by 36% quarter-on-quarter to $10.11 billion, higher than the forecasted $9.03 billion.
- CEO Olivier Le Peuch highlighted rising demand for production solutions amidst evolving market dynamics.
- Growth in regions like the Middle East, North Africa, Argentina, and offshore U.S. was offset by slowdowns in Mexico, Saudi Arabia, offshore Africa, and a decline in Russia.
- Production Systems revenue growth was driven by strong demand for surface production systems, completions, and artificial lift, with pretax operating margins expanding by 197 basis points year-on-year.
- Analyst recommendations included 26 buys, 6 holds, and no sells.
Schlumberger Ltd on Smartkarma
Analyst Coverage of Schlumberger Ltd on Smartkarma
On Smartkarma, a platform for independent investment research, analysts have been closely monitoring Schlumberger Ltd, the oilfield services company. Suhas Reddy, in a report titled “[Pre Earnings Options Flash] Schlumberger’s Options Data Suggests Mixed Signals Ahead of Q1,” highlighted that for the upcoming Q1 earnings, the options market shows neutral sentiment and high volatility due to low oil prices affecting revenue and EPS projections.
Another insight from Suhas Reddy, “[Earnings Preview] SLB Faces Downward Pressure from Weak Oil Prices and Softening Demand,” underlines the downward pressure on Schlumberger due to weak oil prices and softer demand, although the company maintains a “Strong Buy” consensus attributed to its global presence and strong cash flow amidst market underperformance.
A look at Schlumberger Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
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 appears to have a positive long-term outlook. With high scores in Dividend, Growth, and Momentum, the company is positioned well for future success. Schlumberger Ltd, an oil services company providing technology and project management services to the petroleum industry, shows resilience in the face of market challenges.
Investors may find Schlumberger Ltd an attractive option, considering its strong performance in Dividend, Growth, and Momentum according to Smartkarma Smart Scores. Despite a moderate Value score, the company’s overall outlook seems promising. With a focus on innovation and advanced services, Schlumberger Ltd is poised for continued growth in the oil and gas sector.
Summary: Schlumberger Limited, an oil services company, offers technology, project management, and information solutions to the international petroleum industry. The company excels in Dividend, Growth, and Momentum according to Smartkarma Smart Scores, indicating a positive long-term outlook.
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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