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2019-10-28 13:10:00

SCHLUMBERGER NET LOSS $11.4 BLN

SCHLUMBERGER NET LOSS $11.4 BLN

SCHLUMBERGER - HOUSTON, October 18, 2019—Schlumberger Limited (NYSE: SLB) today reported results for the third quarter of 2019.

(Stated in millions, except per share amounts)
    Three Months Ended Change
    Sept. 30, 2019 Jun. 30, 2019 Sept. 30, 2018 Sequential Year-on-year
Revenue   $8,541 $8,269 $8,504 3% 0%
Income (loss) before taxes - GAAP basis   $(11,971) $593 $787 n/m n/m
Pretax segment operating income*   $1,096 $968 $1,152 13% -5%
Pretax segment operating margin*   12.8% 11.7% 13.5% 113 bps -71 bps
Net income (loss) - GAAP basis   $(11,383) $492 $644 n/m n/m
Net income, excluding charges & credits*   $596 $492 $644 21% -7%
Diluted EPS (loss per share)- GAAP basis   $(8.22) $0.35 $0.46 n/m n/m
Diluted EPS, excluding charges & credits*   $0.43 $0.35 $0.46 23% -7%
             
North America revenue   $2,850 $2,801 $3,189 2% -11%
International revenue   $5,629 $5,463 $5,215 3% 8%
             
North America revenue, excluding Cameron   $2,261 $2,201 $2,545 3% -11%
International revenue, excluding Cameron   $4,857 $4,708 $4,502 3% 8%
*These are non-GAAP financial measures. See section below entitled "Charges & Credits" and "Segments" for details.
n/m = not meaningful

Schlumberger CEO Olivier Le Peuch commented, "We ended the third quarter with revenue of $8.5 billion, a 3% sequential increase while pretax segment operating income of $1.1 billion rose 13%. I am pleased with the results and proud of the team's performance. Sustained international activity drove overall growth despite mixed results in North America. The North America business saw strong offshore sales with minimal growth on land due to slowing activity and further pricing weakness. Third-quarter EPS of $0.43, excluding charges, was 23% higher than the second quarter.

"Sequential international growth was led by the Europe/CIS/Africa area, where revenue increased 9% sequentially driven by peak summer activity in the Northern Hemisphere as well as the start of new projects in Africa. International revenue was also driven by double-digit growth in Asia. Latin America revenue declined 9% sequentially on lower activity in Argentina and Mexico. Excluding Cameron, third-quarter international revenue increased 8% year-over-year, remaining in line with our expectations of high single-digit international growth. As we enter the fourth quarter, international activity will be affected by the usual winter slowdown, particularly in the Northern Hemisphere.

"In North America, offshore revenue grew sequentially due to higher WesternGeco® multiclient seismic license sales. Land revenue was slightly higher, as a modest increase in OneStim® activity was offset by softer pricing while land drilling revenue was essentially flat despite the lower rig count. As we exited the quarter, OneStim activity decelerated as frac programs were either deferred or cancelled due to customer budget and cash flow constraints.

"By business segment, third-quarter sequential growth was led by a 6% increase in revenue in Reservoir Characterization due to peak summer campaigns, particularly in the Northern Hemisphere. Cameron revenue increased 3% sequentially from higher OneSubsea®, Surface Systems, and Drilling Systems sales—primarily in the international markets. Drilling and Production revenue each increased 2% sequentially on international growth and decelerating activity in North America land.

"This quarter's results reflected a macro environment of slowing production growth rate in North America land as operators maintained capital discipline, reducing drilling and frac activity. Our year-to-date high single-digit international revenue growth continues to be underpinned by international investment levels. Market uncertainty, however, is weighing on future oil demand outlook in a climate where trade concerns are seen as challenging global economic growth.

"The third quarter results reflect a $12.7 billion pretax charge driven by market conditions. This charge is almost entirely noncash and primarily relates to goodwill, intangible assets, and fixed assets.

"Last month, we presented four key elements of our new strategy: leading and driving digital transformation; developing fit-for-basin solutions; capturing value from the performance impact for our customers; and fostering capital stewardship. The latter involves more stringent capex allocation and a strategic review of our portfolio—particularly in North America—through the lens of fit-for-basin attributes, customer performance, and return on investment.

"We are already off to a good start on digital. We presented our vision of the future E&P industry to 800 customers and partners at the highly successful SIS Global Forum 2019. We are committed to an open digital environment that unlocks customer performance. One enabling element is the DELFI* cognitive E&P environment that now features a suite of cloud-native applications that spans the E&P domains from exploration to production, including ExplorePlan*, DrillPlan*, DrillOps*, FDPlan*, and ProdOps* solutions.

"As we move forward, our vision is to define and drive high performance. Simply put, we want to be the performance partner of choice for the benefit of our customers and our industry. Underpinned by the elements of our strategy, Schlumberger is favorably positioned to achieve superior margin expansion, increased return on capital, and growth in free cash flow."

 

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Earlier:

 SCHLUMBERGER NET INCOME $2.138 BLN
2019, January, 21, 11:05:00
SCHLUMBERGER NET INCOME $2.138 BLN
SCHLUMBERGER - Schlumberger Chairman and CEO Paal Kibsgaard commented, “Full-year 2018 revenue of $32.8 billion increased 8% year-on-year and grew for the second successive year. Performance was driven by North America where revenue of $12.0 billion increased 26% due to the results of our OneStim® business, which grew by 41%. Full-year international revenue of $20.4 billion was essentially flat compared with 2017. However, excluding Cameron, international revenue for the second half of 2018 showed year-over-year growth of 3%, marking the beginning of a positive activity trend after three consecutive years of declining revenues.
 
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2018, October, 22, 11:40:00
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Schlumberger Announces Third-Quarter 2018 Results Revenue of $8.5 billion increased 2% sequentially Pretax operating income of $1.2 billion increased 5% sequentially EPS was $0.46 Cash flow from operations was $1.8 billion Free cash flow was $1.0 billion
 
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2018, April, 30, 09:31:00
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Tags: SCHLUMBERGER