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Schlumberger (SLB) Beats Earnings & Revenue Estimates in Q4
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Schlumberger Limited (SLB - Free Report) has reported fourth-quarter 2022 earnings of 71 cents per share (excluding charges and credits), comfortably beating the Zacks Consensus Estimate of 69 cents. The bottom line significantly increased from the year-ago quarter’s earnings of 41 cents.
The oilfield service giant recorded total quarterly revenues of $7,879 million, outpacing the Zacks Consensus Estimate of $7,821 million. The top line also improved from the year-ago quarter’s $6,225 million.
The strong quarterly results have been primarily driven by strong activities in land and offshore resources in North America and Latin America.
Schlumberger Limited Price, Consensus and EPS Surprise
Schlumberger’s board approved a quarterly cash dividend of 25 cents per share, indicating a 43% increase from the last paid dividend.
Segmental Performance
Revenues in the Digital & Integration unit totaled $1,012 million, up 14% from the year-ago quarter’s levels. Pre-tax operating income of $382 million was up 14%. The outperformance resulted from higher Asset Performance Solutions project revenues in Ecuador, and increased exploration data and digital sales in North America and internationally.
Revenues in the Reservoir Performance unit increased 21% year over year to $1,554 million. Pre-tax operating income was $282 million, rising 41%. The upside in profit was led by higher land and offshore activities.
Revenues in the Well Construction segment rose 35% from the year-earlier quarter’s level to $3,229 million. Pre-tax operating income improved 85% to $679 million. Strong activities and price improvements in Latin America aided the segment.
Revenues in the Production Systems segment amounted to $2,215 million, up 26% from the year-ago quarter’s numbers. Pre-tax operating income improved 49% year over year to $238 million. The segment was aided by new projects and increased product deliveries, particularly in Europe/CIS/Africa, North America, and Latin America.
Cash Flow & Financials
Schlumberger generated a free cash flow of $855 million.
The capital expenditure of Schlumberger in the quarter was $572 million. As of Dec 31, 2022, the company had approximately $2,894 million in cash and short-term investments. It had long-term debt of $10,594 million at the end of the fourth quarter.
Outlook
For 2023, Schlumberger has given its capital budget of $2.5-$2.6 billion, indicating an increase from the $2.3 billion reported in 2022.
Zacks Rank & Stocks to Consider
Schlumberger currently carries a Zacks Rank #3 (Hold).
Halliburton Company (HAL - Free Report) is one of the largest oilfield service providers in the world. HAL currently has an Earnings ESP of +0.30%.
Halliburton is scheduled to release fourth-quarter earnings on Jan 24. The Zacks Consensus Estimate for HAL’s earnings is pegged at 67 cents per share, suggesting a massive increase from the prior-year reported figure.
RPC Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas shale plays in the United States. RES is expected to witness an earnings growth of 2933.3% in 2022.
RPC is scheduled to release fourth-quarter earnings on Jan 25. The Zacks Consensus Estimate for RES’s earnings is pegged at 30 cents per share, suggesting a massive increase from the prior-year reported figure.
PBF Energy Inc. (PBF - Free Report) , based in New Jersey, is a leading refiner of crude. PBF currently has an Earnings ESP of +7.29%.
PBF Energy is scheduled to release fourth-quarter earnings on Feb 16. The Zacks Consensus Estimate for PBF’s earnings is pegged at $4.76 per share, suggesting a massive increase from the prior-year reported figure.
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Schlumberger (SLB) Beats Earnings & Revenue Estimates in Q4
Schlumberger Limited (SLB - Free Report) has reported fourth-quarter 2022 earnings of 71 cents per share (excluding charges and credits), comfortably beating the Zacks Consensus Estimate of 69 cents. The bottom line significantly increased from the year-ago quarter’s earnings of 41 cents.
The oilfield service giant recorded total quarterly revenues of $7,879 million, outpacing the Zacks Consensus Estimate of $7,821 million. The top line also improved from the year-ago quarter’s $6,225 million.
The strong quarterly results have been primarily driven by strong activities in land and offshore resources in North America and Latin America.
Schlumberger Limited Price, Consensus and EPS Surprise
Schlumberger Limited price-consensus-eps-surprise-chart | Schlumberger Limited Quote
Dividend Hike
Schlumberger’s board approved a quarterly cash dividend of 25 cents per share, indicating a 43% increase from the last paid dividend.
Segmental Performance
Revenues in the Digital & Integration unit totaled $1,012 million, up 14% from the year-ago quarter’s levels. Pre-tax operating income of $382 million was up 14%. The outperformance resulted from higher Asset Performance Solutions project revenues in Ecuador, and increased exploration data and digital sales in North America and internationally.
Revenues in the Reservoir Performance unit increased 21% year over year to $1,554 million. Pre-tax operating income was $282 million, rising 41%. The upside in profit was led by higher land and offshore activities.
Revenues in the Well Construction segment rose 35% from the year-earlier quarter’s level to $3,229 million. Pre-tax operating income improved 85% to $679 million. Strong activities and price improvements in Latin America aided the segment.
Revenues in the Production Systems segment amounted to $2,215 million, up 26% from the year-ago quarter’s numbers. Pre-tax operating income improved 49% year over year to $238 million. The segment was aided by new projects and increased product deliveries, particularly in Europe/CIS/Africa, North America, and Latin America.
Cash Flow & Financials
Schlumberger generated a free cash flow of $855 million.
The capital expenditure of Schlumberger in the quarter was $572 million. As of Dec 31, 2022, the company had approximately $2,894 million in cash and short-term investments. It had long-term debt of $10,594 million at the end of the fourth quarter.
Outlook
For 2023, Schlumberger has given its capital budget of $2.5-$2.6 billion, indicating an increase from the $2.3 billion reported in 2022.
Zacks Rank & Stocks to Consider
Schlumberger currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Halliburton Company (HAL - Free Report) is one of the largest oilfield service providers in the world. HAL currently has an Earnings ESP of +0.30%.
Halliburton is scheduled to release fourth-quarter earnings on Jan 24. The Zacks Consensus Estimate for HAL’s earnings is pegged at 67 cents per share, suggesting a massive increase from the prior-year reported figure.
RPC Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas shale plays in the United States. RES is expected to witness an earnings growth of 2933.3% in 2022.
RPC is scheduled to release fourth-quarter earnings on Jan 25. The Zacks Consensus Estimate for RES’s earnings is pegged at 30 cents per share, suggesting a massive increase from the prior-year reported figure.
PBF Energy Inc. (PBF - Free Report) , based in New Jersey, is a leading refiner of crude. PBF currently has an Earnings ESP of +7.29%.
PBF Energy is scheduled to release fourth-quarter earnings on Feb 16. The Zacks Consensus Estimate for PBF’s earnings is pegged at $4.76 per share, suggesting a massive increase from the prior-year reported figure.