Schlumberger Announces Second-Quarter 2019 Results

Source Press Release
Company SchlumbergerTAQA 
Tags Corporate Deals, Deals, Guidance, Financial & Operating Data, Oil Services
Date July 22, 2019
  • Worldwide revenue of $8.3 billion increased 5% sequentially
  • International revenue of $5.5 billion increased 8% sequentially
  • North America revenue of $2.8 billion increased 2% sequentially
  • Pretax segment operating income of $968 million increased 7% sequentially
  • EPS was $0.35
  • Cash flow from operations and free cash flow were $1.1 billion and $0.5 billion, respectively
  • Quarterly cash dividend of $0.50 per share was approved

Schlumberger Limited (NYSE: SLB) today reported results for the second quarter of 2019.

(Stated in millions, except per share amounts)

  Three Months Ended  Change 
Jun. 30, 2019  Mar. 31, 2019  Jun. 30, 2018  Sequential  Year-on-year 
Revenue  $8,269  $7,879  $8,303  5%  0% 
Pretax segment operating income  $968  $908  $1,094  7%  -12% 
Pretax segment operating margin  11.7%  11.5%  13.2%  17 bps  -148 bps 
Net income - GAAP basis  $492  $421  $430  17%  14% 
Net income, excluding charges & credits*  $492  $421  $594  17%  -17% 
Diluted EPS - GAAP basis  $0.35  $0.30  $0.31  17%  13% 
Diluted EPS, excluding charges & credits*  $0.35  $0.30  $0.43  17%  -19% 
North America revenue  $2,801  $2,738  $3,139  2%  -11% 
International revenue  $5,463  $5,037  $5,065  8%  8% 
North America revenue, excluding Cameron  $2,243  $2,178  $2,546  3%  -12% 
International revenue, excluding Cameron  $4,761  $4,469  $4,387  7%  9% 

*These are non-GAAP financial measures. See section tilled "Charges & Credits" for details.

Schlumberger Chairman and CEO Paal Kibsgaard commented, "Second-quarter revenue of $8.3 billion increased 5% sequentially, driven by our international business that grew 8% and showed continued signs of a broad upturn in E&P investment and activity. International rig counts increased 6% sequentially and 5% year-over-year. In contrast, North America land revenue grew 1% sequentially while North America offshore revenue increased 10%."

During the first half of 2019, excluding Cameron, international revenue increased 8% year-over-year while North America land revenue declined 12% year-over-year. These results reflect the normalization in global E&P spend that we were anticipating as international investment increases in response to the accelerating decline in the mature production base, and North America land investment decreases due to E&P operator cash flow constraints. Double-digit year-over-year growth during the first half of 2019 was posted in the Mexico & Central America, Latin America North, Sub-Sahara Africa, and Far East Asia & Australia GeoMarkets while high, single-digit growth was seen in the United Kingdom & Continental Europe, Eastern Middle East, and South & East Asia GeoMarkets. Our results, therefore, continue to match our expectations of high, single-digit growth across our international business in 2019.

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Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd