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Schlumberger’s Q4 revenue tops estimates; earnings come in line

Schlumberger Limited (SLB) reported better-than-expected revenue for the fourth quarter of 2018 while earnings came in line with estimates. Shares were up 2.9% in premarket hours on Friday.

Revenues totaled $8.2 billion which was relatively flat compared to the same period last year. On a sequential basis, revenue dropped 4% due to lower activity and pricing for most businesses within the Production and Cameron segments in North America land.

Schlumberger fourth quarter 2018 earnings infographic
Schlumberger Q4 2018 Earnings Infographic

On a GAAP basis, the company reported a net income of $538 million or $0.39 per share compared to a net loss of $2.25 billion or $1.63 per share in the prior-year period. Adjusted net income dropped 25% year-over-year to $498 million or $0.36 per share.

During the fourth quarter, revenue in North America remained flat compared to the prior-year period. International revenue increased by 1%. Excluding Cameron, revenue in North America rose by 1% and International revenue grew by 3%.

Also see: Schlumberger Q4 2018 Earnings Conference Call Transcript

Revenue in the Reservoir Characterization business unit increased 1% year-over-year. During the quarter, the business benefited from several contract wins and new multiclient seismic surveys. The Drilling unit recorded a year-over-year growth in revenue while the Production and Cameron units saw revenue declines.

Schlumberger Q3 profit jumps 18%, beats estimates

Schlumberger Chairman and CEO Paal Kibsgaard said, “Looking forward to 2019, we expect a more positive supply- and demand-balance sentiment to lead to a gradual recovery in the price of oil over the course of the year, as the OPEC and Russia cuts take full effect; the effect of lower activity in North America land in the second half of 2018 impacts production growth; the dispensations from the Iran export sanctions expire and are not renewed; and as the US and China continue to work toward a solution to their ongoing trade dispute.”

On January 16, 2019, the Board of Directors approved a quarterly cash dividend of $0.50 per common share, payable on April 12, 2019 to shareholders of record on February 13, 2019.

 

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