Schlumberger

Our 12-month target of $56, up $3, reflects an 8.6x multiple of EV to projected 2025 EBITDA, slightly below SLB’s historical average. We think a discount is merited due to SLB having around $2.1B in debt maturing by 2025. We cut our 2024 EPS view by $0.01 to $3.53, but lift 2025’s by $0.54 to $4.23. While we think that SLB could face crude oil headwinds with Middle East customers (most notably Saudi Arabia) in the near term, we think that there are long-term tailwinds that SLB could benefit from within Saudi Arabia as the Kingdom looks to grow its natural gas output by 60% from 2021 levels by 2030, which could lead to an uptick in demand for SLB’s services, in our view, given its historic success in the region. In addition, we see near-term opportunities for SLB with respect to carbon capture and sequestration (CCS), as the company […]

Schlumberger (NYSE:SLB) reported quarterly earnings of $0.75 per share which met the analyst consensus estimate. This is a 19.05 percent increase over earnings of $0.63 per share from the same period last year. The company reported quarterly sales of $8.707 billion which beat the analyst consensus estimate of $8.688 billion by 0.22 percent. This is a 12.55 percent increase over sales of $7.736 billion the same period last year.

Schlumberger (SLB) Announces First-Quarter 2024 Results, Targeting to Return $7 Billion to Shareholders Over 2024–2025 — Revenue of $8.71 billion increased 13% year on year — GAAP EPS of $0.74 increased 14% year on year — EPS, excluding charges and credits, of $0.75 increased 19% year on year — Net income attributable to SLB of $1.07 billion increased 14% year on year — Adjusted EBITDA of $2.06 billion increased 15% year on year — Cash flow from operations was $327 million — Board approved quarterly cash dividend of $0.275 per share KUALA LUMPUR, Malaysia–(BUSINESS WIRE)–April 19, 2024– SLB (NYSE: SLB) today announced results for the first-quarter 2024. This press release features multimedia. View the full release here: The exterior of the SLB headquarters in Houston, Texas (Photo: Business Wire) First-Quarter Results (Stated in millions, except per share amounts) Three Months Ended Change —————————- ———————— Mar. 31, Dec. 31, Mar. 31,

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 $53, up $1, reflects a 9.4x multiple of EV to projected ’25 EBITDA, in line with SLB’s historical average. We keep our stand-alone ’24 EPS view at $3.54 and lift ’25’s by $0.10 to $3.69. Q1 EPS of $0.75 vs. $0.63, was in line with consensus. Q1 revenues rose 13% Y/Y. SLB reiterated its ’24 guide; however, we remain wary of the int’l demand picture, given that Saudi Aramco stated in March it plans to lower capex by $40B between ’24 and ’28 after receiving notice in January ’24 to keep its productive oil capacity at 12 mb/d (vs. 13 mb/d), which could impact SLB, in our view. In April, SLB announced it plans to acquire ChampionX (CHX 36 NR) in an all-stock

The following is a summary of the Schlumberger Limited (SLB) Q1 2024 Earnings Call Transcript: Financial Performance: Schlumberger reported a strong start to Q1 2024 with 13% year-on-year revenue growth, generating revenues of $8.7 billion. EBITDA experienced mid-teens growth, with adjusted EBITDA margins expanding for the 13th consecutive quarter. Earnings per share stood at $0.75, seeing a $0.12 increase from Q1 2023. Despite generating $327 million of cash flow from operations, free cash flow was reported at negative $222 million due to annual employee incentive payouts and lower cash collections. The company experienced a 6% decline in North American revenue due to weaker gas prices and market consolidation, but maintained double-digit growth in international revenue. Business Progress: Schlumberger experienced growth in 21 of their 25 international GeoUnits, with particular improvements seen in the Middle East, Asia, and North Africa. Despite a slow start, digital sales grew in double-digits in Q1,

Schlumberger (NYSE:SLB) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/13/2024 61.7% Susquehanna → $77 Reiterates Positive → Positive 02/08/2024 38.6% RBC Capital → $66 Reiterates Outperform → Outperform 01/22/2024 34.4% Stifel $63 → $64 Maintains Buy 01/22/2024 38.6% RBC Capital → $66 Reiterates Outperform → Outperform 01/22/2024 61.7% Susquehanna $72 → $77 Maintains Positive 01/22/2024 55.4% Barclays $77 → $74 Maintains Overweight 01/22/2024 47% Wells Fargo $69 → $70 Maintains Overweight 10/24/2023 61.7% Barclays $75 → $77 Maintains Overweight 10/23/2023 51.2% Raymond James $68 → $72 Maintains Outperform 10/18/2023 57.5% Barclays $70 → $75 Maintains Overweight 10/17/2023 42.8% Raymond James $67 → $68 Maintains Outperform 10/10/2023 70.1% Societe Generale → $81 Initiates Coverage On → Buy 09/21/2023 47% Citigroup $66 → $70 Maintains Buy 09/11/2023 61.7% Piper Sandler $64 → $77 Maintains Overweight 09/07/2023 51.2% Susquehanna $68 → $72 Maintains Positive

Shares of major oilfield service companies like Schlumberger (SLB), Seadrill (SDRL), Baker Hughes (BKR) and Halliburton (HAL) fell in recent Tuesday trading after multiple media outlets reported oil giant Saudi Aramco shelved its planned increase in maximum oil production capacity by 1 million barrels per day. Schlumberger was down more than 7%, Seadrill fell 3%, Baker Hughes dropped more than 2%, while Halliburton declined more than 1%. Saudi Aramco said it received a state directive to keep its maximum sustainable capacity at 12 million barrels per day. It was earlier mandated to increase the capacity to 13 million barrels per day.

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