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Schlumberger Limited (SLB - Free Report) has reported first-quarter 2022 earnings of 34 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 32 cents. The bottom line significantly increased from the year-ago quarter’s earnings of 21 cents.
The oilfield service giant recorded total quarterly revenues of $5,962 million, outpacing the Zacks Consensus Estimate of $5,893 million. The top line also improved 14.1% from the year-ago quarter’s $5,223 million.
The strong quarterly results were primarily driven by strong drilling activities in North America, Latin America and the Middle East. Higher evaluation and intervention activities across the international offshore markets also buoyed the company’s first-quarter results.
Schlumberger Limited Price, Consensus and EPS Surprise
Schlumberger’s board of directors approved a quarterly cash dividend of 17.5 cents per share of outstanding common stock. This suggests a 40% increase from the prior quarterly cash dividend of 12.5 cents per share. The dividend is payable on Jul 14, 2022, to stockholders of record as of Jun 1, 2022.
Segmental Performance
Revenues in the Digital & Integration unit totaled $857 million, up 11% from the year-ago quarter’s levels. Pre-tax operating income of $292 million was up 18% year over year. The outperformance resulted from higher profitability in digital, exploration data licenses and increased contributions from the Asset Performance Solutions (APS) projects.
Revenues in the Reservoir Performance unit increased 21% year over year to $1,210 million. Pre-tax operating income was $160 million, rising 56% year over year. The upside in profit was led by higher evaluation and intervention activities across the international offshore markets, except for Russia and Central Asia.
Revenues in the Well Construction segment rose 24% from the year-earlier quarter’s level to $2,398 million. Pre-tax operating income improved 85% year over year to $388 million. Strong drilling activities in North America, Latin America and the Middle East aided the segment.
Revenues in the Production Systems segment amounted to $1,604 million, up 1% from the year-ago quarter’s numbers. Pre-tax operating income declined 18% from the prior-year quarter’s levels to $114 million. The segment was hurt by lower profitability in well production systems, driven by supply chain and logistics constraints.
Cash Flow
Schlumberger generated a negative free cash flow of $381 million, with $22 million of severance payments through the March-end quarter.
Financials
Capital expenditure in the quarter was $304 million. As of Mar 31, 2022, the company had approximately $2,649 million in cash and short-term investments. It had long-term debt of $13,163 million at the end of the first quarter, representing a debt to capitalization of 47.4%.
Zacks Rank & Stock to Consider
Schlumberger currently carries a Zacks Rank #3 (Hold).
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. Occidental is scheduled to release first-quarter results on May 10.
OXY’s earnings for 2022 are expected to surge 240.4% year over year. As of Dec 31, 2021, Occidental had cash and cash equivalents of $2,764 million compared with $2,008 million in the corresponding period of 2020.
PBF Energy Inc. (PBF - Free Report) , based in New Jersey, is a leading refiner of crude oil. PBF has one of the most complex refining systems in the United States, with an overall Nelson Complexity Index reading of 12.8. It is scheduled to release first-quarter results on Apr 28.
PBF Energy’s earnings for 2022 are expected to surge 252% year over year. In 2021, revenues at the Refining segment were $27,202 million, contributing almost 99% to the company’s total revenues. The Logistics segment generated profit of $355.5 million, accounting for 1% of PBF's 2021 revenues.
Devon Energy Corporation (DVN - Free Report) is an independent energy company that explores, develops and produces oil and natural gas. At 2021-end, Devon had proved developed and undeveloped reserves of nearly 1,625 million barrels of oil equivalent. It is scheduled to release first-quarter results on May 2.
Devon’s earnings for 2022 are expected to surge 123.2% year over year. DVN’s board approved an increase in the dividend rate to $1, payable to shareholders on Mar 31, 2022. Management approved variable and fixed dividends for shareholders to further enhance the shareholder value.
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Schlumberger (SLB) Beats Q1 Earnings Estimates, Hikes Dividend
Schlumberger Limited (SLB - Free Report) has reported first-quarter 2022 earnings of 34 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 32 cents. The bottom line significantly increased from the year-ago quarter’s earnings of 21 cents.
The oilfield service giant recorded total quarterly revenues of $5,962 million, outpacing the Zacks Consensus Estimate of $5,893 million. The top line also improved 14.1% from the year-ago quarter’s $5,223 million.
The strong quarterly results were primarily driven by strong drilling activities in North America, Latin America and the Middle East. Higher evaluation and intervention activities across the international offshore markets also buoyed the company’s first-quarter results.
Schlumberger Limited Price, Consensus and EPS Surprise
Schlumberger Limited price-consensus-eps-surprise-chart | Schlumberger Limited Quote
Dividend Hike
Schlumberger’s board of directors approved a quarterly cash dividend of 17.5 cents per share of outstanding common stock. This suggests a 40% increase from the prior quarterly cash dividend of 12.5 cents per share. The dividend is payable on Jul 14, 2022, to stockholders of record as of Jun 1, 2022.
Segmental Performance
Revenues in the Digital & Integration unit totaled $857 million, up 11% from the year-ago quarter’s levels. Pre-tax operating income of $292 million was up 18% year over year. The outperformance resulted from higher profitability in digital, exploration data licenses and increased contributions from the Asset Performance Solutions (APS) projects.
Revenues in the Reservoir Performance unit increased 21% year over year to $1,210 million. Pre-tax operating income was $160 million, rising 56% year over year. The upside in profit was led by higher evaluation and intervention activities across the international offshore markets, except for Russia and Central Asia.
Revenues in the Well Construction segment rose 24% from the year-earlier quarter’s level to $2,398 million. Pre-tax operating income improved 85% year over year to $388 million. Strong drilling activities in North America, Latin America and the Middle East aided the segment.
Revenues in the Production Systems segment amounted to $1,604 million, up 1% from the year-ago quarter’s numbers. Pre-tax operating income declined 18% from the prior-year quarter’s levels to $114 million. The segment was hurt by lower profitability in well production systems, driven by supply chain and logistics constraints.
Cash Flow
Schlumberger generated a negative free cash flow of $381 million, with $22 million of severance payments through the March-end quarter.
Financials
Capital expenditure in the quarter was $304 million. As of Mar 31, 2022, the company had approximately $2,649 million in cash and short-term investments. It had long-term debt of $13,163 million at the end of the first quarter, representing a debt to capitalization of 47.4%.
Zacks Rank & Stock to Consider
Schlumberger currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. Occidental is scheduled to release first-quarter results on May 10.
OXY’s earnings for 2022 are expected to surge 240.4% year over year. As of Dec 31, 2021, Occidental had cash and cash equivalents of $2,764 million compared with $2,008 million in the corresponding period of 2020.
PBF Energy Inc. (PBF - Free Report) , based in New Jersey, is a leading refiner of crude oil. PBF has one of the most complex refining systems in the United States, with an overall Nelson Complexity Index reading of 12.8. It is scheduled to release first-quarter results on Apr 28.
PBF Energy’s earnings for 2022 are expected to surge 252% year over year. In 2021, revenues at the Refining segment were $27,202 million, contributing almost 99% to the company’s total revenues. The Logistics segment generated profit of $355.5 million, accounting for 1% of PBF's 2021 revenues.
Devon Energy Corporation (DVN - Free Report) is an independent energy company that explores, develops and produces oil and natural gas. At 2021-end, Devon had proved developed and undeveloped reserves of nearly 1,625 million barrels of oil equivalent. It is scheduled to release first-quarter results on May 2.
Devon’s earnings for 2022 are expected to surge 123.2% year over year. DVN’s board approved an increase in the dividend rate to $1, payable to shareholders on Mar 31, 2022. Management approved variable and fixed dividends for shareholders to further enhance the shareholder value.