- SLB’s adjusted earnings per share (EPS) for the third quarter matched estimates at 89 cents, up from 78 cents year-over-year.
- Total revenue reached $9.16 billion, marking a 10% year-over-year increase, but fell short of the $9.27 billion estimate.
- Digital & Integration revenue hit $1.09 billion, an 11% increase year-over-year, aligning with expectations.
- Reservoir Performance revenue increased by 8.5% year-over-year to $1.82 billion, though it fell short of the $1.86 billion estimate.
- Production Systems revenue grew significantly by 31% year-over-year, reaching $3.10 billion, matching expectations.
- Well Construction revenue decreased by 3.4% year-over-year to $3.31 billion, underperforming against an estimate of $3.46 billion.
- Adjusted EBITDA was $2.34 billion, a 13% increase year-over-year, slightly below the $2.35 billion expectation.
- Cash flow from operations soared by 46% year-over-year, totaling $2.45 billion, surpassing the $2.02 billion estimate.
- Capital expenditure decreased slightly by 0.9% year-over-year to $460 million, below the $517.3 million estimate.
- Free cash flow experienced a substantial rise of 74% year-over-year, reaching $1.81 billion, exceeding the $1.34 billion estimate.
- Net debt decreased by 7.9% quarter-over-quarter to $8.46 billion, closely matching the $8.45 billion estimate.
- SLB’s growth was achieved despite challenges such as softened short-cycle activity growth and cautious spending by international producers due to lower oil prices and ample global supply.
- Revenue growth was seen in the Middle East & Asia and offshore North America, offset by a decline in Latin America; Europe & Africa remained steady.
- The digital business contributed strongly, with a 7% sequential and 25% year-over-year growth.
- The Digital & Integration pretax segment operating margin improved by 456 basis points sequentially, driven mainly by the digital business.
- The company’s stock received strong market confidence with 29 buy ratings, 2 hold ratings, and no sell ratings.
Schlumberger Ltd on Smartkarma
Analyst coverage of Schlumberger Ltd on Smartkarma showcases positive sentiments towards the company’s performance and growth prospects. Suhas Reddy‘s analysis highlights the international operations as a key driver for Q3 growth, with advancements in carbon capture and lithium production positioning Schlumberger for long-term gains. Revenue and EPS are projected to increase significantly, driven by international growth and cost-efficiency programs. Furthermore, management expects strong performance in the second half of 2024, with a focus on digital sales and product efficiency.
Similarly, Baptista Research emphasizes Schlumberger’s ability to leverage the shift towards natural gas and offshore performance for driving growth. The company’s revenue and EBITDA have shown positive growth trends, with a focus on efficiency throughout operations. These reports collectively paint a bullish outlook for Schlumberger, underlining the company’s strategic initiatives and promising financial performance.
A look at Schlumberger Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| 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 for Schlumberger Ltd, the company shows a promising long-term outlook. With a strong score of 5 for Growth, Schlumberger is positioned well for expansion and development in the future. This indicates that the company has solid potential for increasing its market presence and profitability over time. Additionally, with scores of 3 in Value, Dividend, Resilience, and Momentum, Schlumberger demonstrates a balanced performance across various key factors, further supporting its positive prospects in the oil services industry.
Schlumberger Limited, an oil services company, offers a wide array of services to the international petroleum industry, including technology, project management, and information solutions. With a comprehensive suite of advanced acquisition and data processing surveys, Schlumberger plays a crucial role in supporting the efficiency and innovation within the sector. The combination of its strong growth score and diversified service portfolio positions Schlumberger well for sustained success and continued relevance in the ever-evolving energy 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
