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SLB's Q1 Earnings and Revenues Surpass Estimates, Rise Y/Y
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SLB (SLB - Free Report) reported first-quarter 2023 earnings of 63 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 61 cents. The bottom line significantly increased from the year-ago quarter’s earnings of 34 cents.
The oilfield service giant recorded total quarterly revenues of $7,736 million, outpacing the Zacks Consensus Estimate of $7,498 million. The top line also improved from the year-ago quarter’s $5,962 million.
The strong quarterly results have been primarily driven by higher stimulation services across all onshore and offshore areas.
Schlumberger Limited Price, Consensus and EPS Surprise
Revenues in the Digital & Integration unit totaled $894 million, up 4% from the year-ago quarter’s levels. Pre-tax operating income of $265 million was down 9%. The outperformance resulted from the sustained increase in digital sales and higher exploration data license sales in the U.S. Gulf of Mexico. The positives were offset partially by a decline in revenues from Asset Performance Solutions (APS) developments.
Revenues in the Reservoir Performance unit increased 24% year over year to $1,503 million. Pre-tax operating income was $242 million, rising 52%. The upside in profit was led by higher stimulation services across all onshore and offshore areas.
Revenues in the Well Construction segment rose 36% from the year-earlier quarter’s level to $3,261 million. Pre-tax operating income improved 73% to $672 million. Solid activities and price improvements in Latin America and North America aided the segment.
Revenues in the Production Systems segment amounted to $2,207 million, up 38% from the year-ago quarter’s numbers. Pre-tax operating income improved 80% year over year to $205 million. The segment was aided by solid activities across Europe & Africa and Latin America.
Cash Flow & Financials
SLB reported a negative free cash flow of $265 million.
As of Mar 31, 2023, the company had approximately $2,504 million in cash and short-term investments. It had long-term debt of $10,698 million at the end of the first quarter.
Outlook
SLB foresees strong activities across the globe this year. In the Northern Hemisphere, SLB expects a seasonal recovery in the second quarter with capital expansion developments in the Middle East.
Zacks Rank & Other Stocks to Consider
Currently, SLB carries a Zacks Rank #2 (Buy). Other prospective players in the energy space include Marathon Petroleum Corporation (MPC - Free Report) , Sunoco LP (SUN - Free Report) and Valero Energy Corporation (VLO - Free Report) . While Marathon Petroleum and Sunoco sport a Zacks Rank #1 (Strong Buy), Valero carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is a well-known name since it operates the largest refining system in the nation. In the past seven days, MPC has witnessed upward earnings estimate revisions for 2023.
Sunoco has a stable business model while distributing motor fuel to approximately 10,000 convenience stores. For this year, SUN has witnessed upward earnings estimate revisions in the past 60 days.
Valero Energy is well poised to gain from constraint capacity in global refining activities and favorable demand for refined products. This, in turn, will possibly drive utilization in refining capacity and boost cashflows.
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SLB's Q1 Earnings and Revenues Surpass Estimates, Rise Y/Y
SLB (SLB - Free Report) reported first-quarter 2023 earnings of 63 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 61 cents. The bottom line significantly increased from the year-ago quarter’s earnings of 34 cents.
The oilfield service giant recorded total quarterly revenues of $7,736 million, outpacing the Zacks Consensus Estimate of $7,498 million. The top line also improved from the year-ago quarter’s $5,962 million.
The strong quarterly results have been primarily driven by higher stimulation services across all onshore and offshore areas.
Schlumberger Limited Price, Consensus and EPS Surprise
Schlumberger Limited price-consensus-eps-surprise-chart | Schlumberger Limited Quote
Segmental Performance
Revenues in the Digital & Integration unit totaled $894 million, up 4% from the year-ago quarter’s levels. Pre-tax operating income of $265 million was down 9%. The outperformance resulted from the sustained increase in digital sales and higher exploration data license sales in the U.S. Gulf of Mexico. The positives were offset partially by a decline in revenues from Asset Performance Solutions (APS) developments.
Revenues in the Reservoir Performance unit increased 24% year over year to $1,503 million. Pre-tax operating income was $242 million, rising 52%. The upside in profit was led by higher stimulation services across all onshore and offshore areas.
Revenues in the Well Construction segment rose 36% from the year-earlier quarter’s level to $3,261 million. Pre-tax operating income improved 73% to $672 million. Solid activities and price improvements in Latin America and North America aided the segment.
Revenues in the Production Systems segment amounted to $2,207 million, up 38% from the year-ago quarter’s numbers. Pre-tax operating income improved 80% year over year to $205 million. The segment was aided by solid activities across Europe & Africa and Latin America.
Cash Flow & Financials
SLB reported a negative free cash flow of $265 million.
As of Mar 31, 2023, the company had approximately $2,504 million in cash and short-term investments. It had long-term debt of $10,698 million at the end of the first quarter.
Outlook
SLB foresees strong activities across the globe this year. In the Northern Hemisphere, SLB expects a seasonal recovery in the second quarter with capital expansion developments in the Middle East.
Zacks Rank & Other Stocks to Consider
Currently, SLB carries a Zacks Rank #2 (Buy). Other prospective players in the energy space include Marathon Petroleum Corporation (MPC - Free Report) , Sunoco LP (SUN - Free Report) and Valero Energy Corporation (VLO - Free Report) . While Marathon Petroleum and Sunoco sport a Zacks Rank #1 (Strong Buy), Valero carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is a well-known name since it operates the largest refining system in the nation. In the past seven days, MPC has witnessed upward earnings estimate revisions for 2023.
Sunoco has a stable business model while distributing motor fuel to approximately 10,000 convenience stores. For this year, SUN has witnessed upward earnings estimate revisions in the past 60 days.
Valero Energy is well poised to gain from constraint capacity in global refining activities and favorable demand for refined products. This, in turn, will possibly drive utilization in refining capacity and boost cashflows.