Categories Earnings, Energy

Schlumberger (SLB) likely to be hurt by exploration costs in Q3

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.

Schlumberger likely to be hurt by exploration costs in Q3
Image for representation. Courtesy: Monika Wrangel from Pixabay

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.

Read: Citigroup Q3 earnings review

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.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

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

  1. Pingback: Quality standards
  2. Pingback: Marketing courses
  3. Pingback: Bureaucracies
  4. Pingback: Oral Health
  5. Pingback: Faculty Handbook
  6. Pingback: faretti binari
  7. Pingback: pull up
  8. Pingback: lean biome
  9. Pingback: Fiverr Earn
  10. Pingback: Fiverr Earn
  11. Pingback: Fiverr Earn
  12. Pingback: Fiverr Earn
  13. Pingback: Fiverr Earn
  14. Pingback: fiverrearn.com
  15. Pingback: prodentim buy
  16. Pingback: dallas frenchie
  17. Pingback: fiverrearn.com
  18. Pingback: fiverrearn.com
  19. Pingback: Sem
  20. Pingback: crypto news
  21. Pingback: clima fresno
  22. Pingback: future university
  23. Pingback: tridelta hat
  24. Pingback: wix login
  25. Pingback: future university
  26. Pingback: lean six sigma
  27. Pingback: Warranty
  28. Pingback: FUE
  29. Pingback: FUE
  30. Pingback: FUE
  31. Pingback: FUE
  32. Pingback: Classic Books 500
  33. Pingback: FiverrEarn
  34. Pingback: FiverrEarn
  35. Pingback: Speaker
  36. Pingback: FiverrEarn
  37. Pingback: partners
  38. Pingback: skin care products
  39. Pingback: Social Justice
  40. Pingback: FiverrEarn
  41. Pingback: FiverrEarn
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: FiverrEarn
  46. Pingback: FiverrEarn
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: cheap sex cams
  51. Pingback: live sex cams
  52. Pingback: live sex cams
  53. Pingback: frt trigger
  54. Pingback: OnOverseas.Com
  55. Pingback: 늑대닷컴
  56. Pingback: Slot online HTML5
  57. Pingback: One Peace AMV
  58. Pingback: nang sydney
  59. Pingback: superslot
  60. Pingback: allgame
  61. Pingback: 918kiss
  62. Pingback: หวย24
  63. Pingback: pg slot
  64. Pingback: regles 421
  65. Pingback: catskills hotel
  66. Pingback: electronic visa
  67. Pingback: 35 whelen ammo
  68. Pingback: itsMasum.Com
  69. Pingback: itsMasum.Com
  70. Pingback: itme.xyz
  71. Pingback: ItMe.Xyz
  72. Pingback: MasumINTL
  73. Pingback: itme.xyz
  74. Pingback: ItMe.Xyz

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top