Schlumberger (NYSE: SLB) is set to release its third-quarter earnings results on Friday before the market opens. The oilfield services provider’s bottom line will be hurt by higher costs and expenses while high offshore exploration-led activity will continue to drive the top line.
The company continued to be hurt by the negative sentiment towards the oil & gas industry, which tends to be highly sensitive due to the global economic slowdown. The oilfield services industry continues to face low capacity utilization and depressed margins due to lower exploration and production capital expenditure.
The oil market sentiments are expected to remain balanced for Schlumberger. For 2019, the oil demand forecast has been lowered slightly on trade ware concerns and global geopolitical tensions but the company does not anticipate a change in the structural demand outlook for the mid-term.
On the supply side, Schlumberger continues to see US shale oil as the only near-to-medium-term source of global production growth, albeit at a slow rate, as exploration & production operators continue to transition from growth to cash and returns, with consequent restraining effects on investment levels.
The results will be hurt by slowing production growth in the US despite rebounding international capital expenditure. However, the company will be benefited from the normalization of international activity relative to North America.
Analysts expect the company’s earnings to plunge by 13% to $0.40 per share while revenue remained virtually unchanged at $8.5 billion for the third quarter. The results matched the analysts’ expectations thrice in the past four quarters. The majority of the analysts recommended a “buy” rating with an average price target of $45.60.
For the second quarter, Schlumberger posted a 14% jump in earnings driven by lower costs and expenses as well as the exclusion of the previous year’s workforce reduction charges. The results were benefited by double-digit growth in the Mexico & Central America GeoMarket due to high offshore exploration-led activity for the IOCs and increased Integrated Drilling Services (IDS) onshore activity.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results
Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a
AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates
Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion
Comments
Comments are closed.