Schlumberger’s (SLB) adjusted income for the first quarter of 2019 slid 20% year-over-year to $421 million or $0.30 per share as North America revenve dropped 3% annually. Revenue increased 1% year-over-year to $7.88 billion. Earnings have come in line with Street’s views of 30 cents per share, while revenue topped the target of $7.81 billion.
Schlumberger stock, which was down about 1% after the earnings announcement, turned to positive territory in the pre-market trading hours.
“From a macro perspective, we expect the oil market sentiments to steadily improve over the course of 2019, supported by a solid demand outlook combined with the OPEC and Russia production cuts taking full effect, slowing shale oil production growth in North America, and a further weakening of the international production base as the impact of four years of underinvestment becomes increasingly evident,” said CEO Paal Kibsgaard.
Schlumberger views E&P investments in the international markets to increase by 7% to 8% in 2019, supported by a higher rig count and a rise in the number of customer project FIDs. In North America, Schlumberger expects future E&P investment levels to likely be dictated by free cash flow and sees E&P investments in North America land down 10% in 2019.
Revenue from North America was 3% lower sequentially, driven by softer pricing and lower activity for both hydraulic fracturing- and drilling-related businesses.
International revenue increased 3% year-on-year to $5 billion. Reservoir Characterization, Drilling, and Production combined to deliver year-on-year revenue growth of 8%, on track with Schlumberger’s aim of reaching high single-digit growth in the international markets in 2019.
Schlumberger stock had gained 31% since the beginning of this year and dropped 31% in the past 12 months.
Most Popular
QCOM Earnings: Qualcomm Q2 2024 revenue and profit beat Street view
Semiconductor company Qualcomm, Inc. (NASDAQ: QCOM) reported an increase in earnings and revenues for the second quarter of 2024. The numbers came in above analysts' estimates. At $9.39 billion, March-quarter
Key takeaways from Amazon’s Q1 2024 earnings report
Amazon.com Inc. (NASDAQ: AMZN) had an upbeat start to fiscal 2024, delivering strong growth across the business in the first three months of the year. While the cloud segment continues
Key takeaways from Pfizer’s (PFE) Q1 2024 earnings report
Shares of Pfizer Inc. (NYSE: PFE) gained over 5% on Wednesday following the company’s announcement of its first quarter 2024 earnings results. Although the top and bottom line numbers decreased