We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Schlumberger (SLB) Q2 Earnings Beat on International Activities
Read MoreHide Full Article
Schlumberger Limited (SLB - Free Report) announced second-quarter 2021 earnings of 30 cents per share (excluding charges and credits), surpassing the Zacks Consensus Estimate of 26 cents and the year-ago quarter’s profit of 5 cents.
The oilfield service giant recorded total revenues of $5,634 million, which beat the Zacks Consensus Estimate of $5,509 million and improved 5% from the year-ago quarter’s $5,356 million.
The strong quarterly results can be attributed to increased offshore exploration in Guyana and Angola. Robust activities in North American and international markets contributed to the positives.
Schlumberger Limited Price, Consensus and EPS Surprise
Halliburton Company (HAL - Free Report) is another oilfield service giant that recently beat the Zacks Consensus Estimate of earnings for the June quarter.
Segmental Performance
Revenues in the Digital & Integration unit totaled $817 million, up 32% from the year-ago quarter’s levels. Pre-tax operating income of $274 million was up 154% year over year. The outperformance was owing to increased sales of digital solutions.
Revenues in the Reservoir Performance unit declined 4% year over year to $1,117 million. Pre-tax operating income was $156 million, surging 609% year over year. The upside was led by increased offshore exploration in Guyana and Angola.
Revenues in the Well Construction segment inched up 1% from the year-earlier quarter’s levels to $2,110 million. Pre-tax operating income improved 51% year over year to $272 million. Stronger activities in North American and international markets aided the uptick.
Revenues in the Production Systems segment amounted to $1,681 million, up 8% from the year-ago quarter’s numbers. Pre-tax operating income rose 18% from the prior-year quarter’s levels to $171 million. An increase in sales of well, surface and subsea production systems was responsible for the improvements.
Cash Flow
Despite the company’s $72 million of severance payments through the June quarter, the oilfield service firm was able to generate free cash flow of $869 million.
Financials
Capital expenditures in the quarter were recorded at $243 million. As of Jun 30, 2021, the company had approximately $2,682 million in cash and short-term investments. It had a long-term debt of $15,687 million at second quarter-end, representing a debt to capitalization of 54.6%.
Forward View
Schlumberger reiterated 2021 capital investment view within $1.5-$1.7 billion. Last year, the figure was $1.5 billion.
The company believes that despite the resurgence of coronavirus, may be due to the widespread delta variants, the momentum in international activities that has been experienced in the June quarter will continue.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Two better-ranked players in the energy space include Continental Resources, Inc. and PDC Energy, Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Schlumberger (SLB) Q2 Earnings Beat on International Activities
Schlumberger Limited (SLB - Free Report) announced second-quarter 2021 earnings of 30 cents per share (excluding charges and credits), surpassing the Zacks Consensus Estimate of 26 cents and the year-ago quarter’s profit of 5 cents.
The oilfield service giant recorded total revenues of $5,634 million, which beat the Zacks Consensus Estimate of $5,509 million and improved 5% from the year-ago quarter’s $5,356 million.
The strong quarterly results can be attributed to increased offshore exploration in Guyana and Angola. Robust activities in North American and international markets contributed to the positives.
Schlumberger Limited Price, Consensus and EPS Surprise
Schlumberger Limited price-consensus-eps-surprise-chart | Schlumberger Limited Quote
Halliburton Company (HAL - Free Report) is another oilfield service giant that recently beat the Zacks Consensus Estimate of earnings for the June quarter.
Segmental Performance
Revenues in the Digital & Integration unit totaled $817 million, up 32% from the year-ago quarter’s levels. Pre-tax operating income of $274 million was up 154% year over year. The outperformance was owing to increased sales of digital solutions.
Revenues in the Reservoir Performance unit declined 4% year over year to $1,117 million. Pre-tax operating income was $156 million, surging 609% year over year. The upside was led by increased offshore exploration in Guyana and Angola.
Revenues in the Well Construction segment inched up 1% from the year-earlier quarter’s levels to $2,110 million. Pre-tax operating income improved 51% year over year to $272 million. Stronger activities in North American and international markets aided the uptick.
Revenues in the Production Systems segment amounted to $1,681 million, up 8% from the year-ago quarter’s numbers. Pre-tax operating income rose 18% from the prior-year quarter’s levels to $171 million. An increase in sales of well, surface and subsea production systems was responsible for the improvements.
Cash Flow
Despite the company’s $72 million of severance payments through the June quarter, the oilfield service firm was able to generate free cash flow of $869 million.
Financials
Capital expenditures in the quarter were recorded at $243 million. As of Jun 30, 2021, the company had approximately $2,682 million in cash and short-term investments. It had a long-term debt of $15,687 million at second quarter-end, representing a debt to capitalization of 54.6%.
Forward View
Schlumberger reiterated 2021 capital investment view within $1.5-$1.7 billion. Last year, the figure was $1.5 billion.
The company believes that despite the resurgence of coronavirus, may be due to the widespread delta variants, the momentum in international activities that has been experienced in the June quarter will continue.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Two better-ranked players in the energy space include Continental Resources, Inc. and PDC Energy, Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.