Energy

By Emily Dattilo Shares of SLB were trading higher after the oil services provider formerly known as Schlumberger topped earnings estimates and raised its quarterly dividend. SLB posted fourth-quarter adjusted earnings of 86 cents a share, beating Wall Street’s call for 84 cents, according to FactSet. Revenue of $8.99 billion was above the $8.96 billion analysts had expected. International revenue jumped 18% in the quarter. SLB’s board approved a 10% increase in the company’s quarterly cash dividend to 27.5 cents from 25 cents. For the full year, revenue rose 18% year over year, while adjusted earnings jumped 37%. “Our strong full-year performance was fueled by substantial international growth, with approximately 90% of our international GeoUnits posting year-on-year increases, complemented by sustained performance in North America,” CEO Olivier Le Peuch said in a statement. Shares rose 0.7% to $48.90 in premarket trading Friday. Write to Emily Dattilo at emily.dattilo@dowjones.com

Schlumberger N.V. (NYSE:SLB) reported a fourth-quarter fiscal 2023 revenue increase of 14% year-over-year to $8.99 billion, beating the consensus of $8.95 billion. Revenue by Division: Digital & Integration $1.05 billion (+4% Y/Y); Reservoir Performance $1.735 billion (+12% Y/Y); Well Construction $3.43 billion (+6% Y/Y), and Production Systems $2.94 billion (+33% Y/Y). Adjusted EPS increased 21% Y/Y to $0.86, beating the consensus of $0.84. Adjusted EBITDA was $2.28 billion for the quarter, an increase of 19% Y/Y, and margin expanded 95 bps to 25.3%. The pretax segment operating margin expanded by 101 bps for the quarter to 20.8%. Operating cash flow for the quarter totaled $3.02 billion; for fiscal 2023, it was $6.64 billion compared to $3.72 billion. Free cash flow was $4.04 billion for the fiscal. “Compared to the same quarter last year, international revenue outpaced North America, growing 18% while North America was relatively flat,” commented CEO Olivier Le Peuch.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $56, up $1, reflects a 9.6x multiple of EV to projected 2024 EBITDA, below SLB’s historical average. We keep our 2024 EPS view at $3.59 and set 2025’s at $4.21. Q4 EPS of $0.86 vs. $0.71, beat consensus by $0.03. Q4 revenues (~$9B) grew 14% Y/Y, driven by its Production Systems segment (+33%). Q4 EBITDA margin (25%) rose by 95 bps, driven by its Reservoir Performance segment (+287 bps). SLB revealed its 2024 guidance for capex to be in the range of $2.6B (vs. $1.9B in 2023); however, we note that 2024’s guidance is the same as 2023’s (~$2.6B), which we think should insulate SLB from further revisions should activity growth surprise toward the upside. We estimate SLB with FCF in the range

Schlumberger (SLB) shares were up 2.3% in recent Friday trading after the company reported Q4 adjusted earnings of $0.86 per diluted share, up from $0.71 a year earlier. Analysts polled by Capital IQ expected $0.83. Revenue for the quarter ended Dec. 31 was $8.99 billion, compared with $7.88 billion a year earlier. Analysts surveyed by Capital IQ expected $8.94 billion. The oil services company said its board raised the quarterly dividend to $0.275 per share from $0.25, payable on April 4 to shareholders of record as of Feb. 7.

The following is a summary of the Schlumberger Limited (SLB) Q4 2023 Earnings Call Transcript: Financial Performance: Schlumberger reported Q4 earnings per share of $0.86, an increase of $0.08 sequentially and $0.15 year on year. Full year 2023 revenue was $33.1 million, an 18% increase from 2022. Adjusted EBITDA margin for full-year 2023 was 24.5%, indicating an expansion of 430 basis points over this period on a similar revenue base. The Q4 revenue of $8.99 billion increased 8% sequentially, largely due to the acquisition of Aker subsea business. Cash flow from operations amounted to $3 billion, and free cash flow was $2.3 billion during Q4, resulting in full-year free cash flow of $4 billion. Net debt was reduced by $1.4 billion during the quarter, totaling $8 billion. Business Progress: Schlumberger acquired Aker subsea business, which accounted for about 70% of the Q4 revenue increase. For each division, digital and integration

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $55, down $15, reflects a 9.6x multiple of EV to projected ’24 EBITDA, below SLB’s historical average. We think a discount is merited based on concerns regarding oil demand for ’24. As a result, we downgrade our rating based on fundamentals for ’24, as we believe that int’l activity will exceed North American activity throughout ’24, but not at the levels seen in ’23. We lift our ’23 EPS view by $0.01 to $2.96 and cut ’24’s by $0.13 to $3.59. We expect Q4 23 EPS of $0.83 vs. Q4 22 EPS of $0.71, with earnings to be reported on January 19. SLB’s fortunes are heavily tied to its int’l exposure, which accounts for around 80% of its total revenues. For ’24, we