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SLB Q4 Earnings Miss Estimates, Revenues Rise Year Over Year
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SLB (SLB - Free Report) reported fourth-quarter 2023 earnings of 77 cents per share (excluding charges and credits), which missed the Zacks Consensus Estimate of 84 cents. The bottom line, however, increased from the year-ago quarter’s level of 71 cents.
The oilfield service giant recorded total quarterly revenues of $8.99 billion, which beat the Zacks Consensus Estimate of $8.98 billion. The top line also improved from the year-ago quarter’s figure of $7.88 billion.
Better-than-expected quarterly earnings were primarily driven by higher evaluation and stimulation activity in the international market. The positives were partially offset by a decline in profitability in Asset Performance Solutions (“APS”) and decreased APS revenues in Canada.
Schlumberger Limited Price, Consensus and EPS Surprise
Revenues in the Digital & Integration unit totaled $1,049 million, up 4% from the year-ago quarter’s level. Pre-tax operating income of $356 million was down 7% year over year. The figure also missed the Zacks Consensus Estimate of $369 million.
Revenues increased owing to strong international growth in Digital revenues despite lower exploration data sales in the U.S. Gulf of Mexico. The positives, however, were offset by a decline in profitability in APS, which was impacted by lower commodity prices in Canada.
Revenues in the Reservoir Performance unit increased 12% year over year to $1.74 billion. Pre-tax operating income was $371 million, up 31% year over year. The figure also beat the Zacks Consensus Estimate of $351 million. The upside in profit was led by higher evaluation and stimulation activity in the international market.
Revenues in the Well Construction segment rose 6% from the year-earlier quarter’s level to $3.43 billion. Pre-tax operating income improved 13% to $770 million and the Zacks Consensus Estimate for the same was pegged at $771 million. The segment received a boost from robust growth in the Middle East and Asia.
Revenues in the Production Systems segment amounted to $2.94 billion, up 33% from the year-ago quarter’s actuals. Pre-tax operating income improved 85% year over year to $442 million, which surpassed the Zacks Consensus Estimate of $391 million. The segment benefited from strong sales of midstream, artificial lift and subsea production systems. Its performance was driven by an improved activity mix, pricing and the easing of supply-chain constraints.
Cash Flow & Financials
SLB reported a free cash flow of $2.28 billion in the fourth quarter.
As of Dec 31, 2023, the company had approximately $3.99 billion in cash and short-term investments. It had a long-term debt of $10.84 billion at the end of the fourth quarter.
Outlook
SLB believes that the overall market fundamentals are clearly in favor of its business activities. Strong growth awaits from international and offshore markets, and the leading oilfield service provider is expecting to benefit significantly from the region where it has a significant footprint. The anticipated capital investment for full-year 2024 (including capex, exploration data costs and APS investments) is $2.6 billion, in line with the previous year’s actuals.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. It has a core competency in terms of its history of disciplined expense management.
The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $3.83. SUN currently has a Zacks Style Score of B for Value and Growth.
Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. OII currently has a Zacks Style Score of A for Growth, and B for Value and Momentum.
Enbridge is a leading energy infrastructure company. It plans to introduce more than C$19 billion in growth projects, contributing to significant EBITDA growth in the near future.
The Zacks Consensus Estimate for ENB’s 2024 EPS is pegged at $2.13. ENB currently has a Zacks Style Score of A for Momentum.
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SLB Q4 Earnings Miss Estimates, Revenues Rise Year Over Year
SLB (SLB - Free Report) reported fourth-quarter 2023 earnings of 77 cents per share (excluding charges and credits), which missed the Zacks Consensus Estimate of 84 cents. The bottom line, however, increased from the year-ago quarter’s level of 71 cents.
The oilfield service giant recorded total quarterly revenues of $8.99 billion, which beat the Zacks Consensus Estimate of $8.98 billion. The top line also improved from the year-ago quarter’s figure of $7.88 billion.
Better-than-expected quarterly earnings were primarily driven by higher evaluation and stimulation activity in the international market. The positives were partially offset by a decline in profitability in Asset Performance Solutions (“APS”) and decreased APS revenues in Canada.
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 $1,049 million, up 4% from the year-ago quarter’s level. Pre-tax operating income of $356 million was down 7% year over year. The figure also missed the Zacks Consensus Estimate of $369 million.
Revenues increased owing to strong international growth in Digital revenues despite lower exploration data sales in the U.S. Gulf of Mexico. The positives, however, were offset by a decline in profitability in APS, which was impacted by lower commodity prices in Canada.
Revenues in the Reservoir Performance unit increased 12% year over year to $1.74 billion. Pre-tax operating income was $371 million, up 31% year over year. The figure also beat the Zacks Consensus Estimate of $351 million. The upside in profit was led by higher evaluation and stimulation activity in the international market.
Revenues in the Well Construction segment rose 6% from the year-earlier quarter’s level to $3.43 billion. Pre-tax operating income improved 13% to $770 million and the Zacks Consensus Estimate for the same was pegged at $771 million. The segment received a boost from robust growth in the Middle East and Asia.
Revenues in the Production Systems segment amounted to $2.94 billion, up 33% from the year-ago quarter’s actuals. Pre-tax operating income improved 85% year over year to $442 million, which surpassed the Zacks Consensus Estimate of $391 million. The segment benefited from strong sales of midstream, artificial lift and subsea production systems. Its performance was driven by an improved activity mix, pricing and the easing of supply-chain constraints.
Cash Flow & Financials
SLB reported a free cash flow of $2.28 billion in the fourth quarter.
As of Dec 31, 2023, the company had approximately $3.99 billion in cash and short-term investments. It had a long-term debt of $10.84 billion at the end of the fourth quarter.
Outlook
SLB believes that the overall market fundamentals are clearly in favor of its business activities. Strong growth awaits from international and offshore markets, and the leading oilfield service provider is expecting to benefit significantly from the region where it has a significant footprint. The anticipated capital investment for full-year 2024 (including capex, exploration data costs and APS investments) is $2.6 billion, in line with the previous year’s actuals.
Zacks Rank & Stocks to Consider
SLB currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Sunoco LP (SUN - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Enbridge Inc. (ENB - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. It has a core competency in terms of its history of disciplined expense management.
The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $3.83. SUN currently has a Zacks Style Score of B for Value and Growth.
Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. OII currently has a Zacks Style Score of A for Growth, and B for Value and Momentum.
Enbridge is a leading energy infrastructure company. It plans to introduce more than C$19 billion in growth projects, contributing to significant EBITDA growth in the near future.
The Zacks Consensus Estimate for ENB’s 2024 EPS is pegged at $2.13. ENB currently has a Zacks Style Score of A for Momentum.