• Worldwide revenue of $8.5 billion
increased 3% sequentially
• International revenue of $5.6
billion increased 3% sequentially
• North America revenue of $2.8
billion increased 2% sequentially
• GAAP loss per share, including
charges of $8.65 per share, was $8.22
• EPS, excluding charges, was $0.43
representing a 23% sequential increase
• Cash flow from operations was $1.7
billion and free cash flow was $1.1 billion
• Board approved a quarterly cash
dividend of $0.50 per share
HOUSTON--(BUSINESS WIRE/AETOSWire)--
Schlumberger Limited (NYSE: SLB) today reported results for the third quarter
of 2019.
|
(Stated in millions, except per
share amounts)
|
|||||||||
|
Three Months Ended
|
Change
|
||||||||
|
Sept. 30, 2019
|
Jun. 30, 2019
|
Sept. 30, 2018
|
Sequential
|
Year-on-year
|
|||||
|
Revenue
|
$8,541
|
$8,269
|
$8,504
|
3%
|
|
0%
|
|||
|
Income (loss) before taxes - GAAP
basis
|
$(11,971)
|
$593
|
$787
|
n/m
|
|
n/m
|
|||
|
Pretax segment operating income*
|
$1,096
|
$968
|
$1,152
|
13%
|
|
-5%
|
|||
|
Pretax segment operating margin*
|
12.8%
|
11.7%
|
13.5%
|
113 bps
|
|
-71 bps
|
|||
|
Net income (loss) - GAAP basis
|
$(11,383)
|
$492
|
$644
|
n/m
|
|
n/m
|
|||
|
Net income, excluding charges &
credits*
|
$596
|
$492
|
$644
|
21%
|
|
-7%
|
|||
|
Diluted EPS (loss per share) -
GAAP basis
|
$(8.22)
|
$0.35
|
$0.46
|
n/m
|
|
n/m
|
|||
|
Diluted EPS, excluding charges
& credits*
|
$0.43
|
$0.35
|
$0.46
|
23%
|
|
-7%
|
|||
|
|
|
|
|||||||
|
North America revenue
|
$2,850
|
$2,801
|
$3,189
|
2%
|
|
-11%
|
|||
|
International revenue
|
$5,629
|
$5,463
|
$5,215
|
3%
|
|
8%
|
|||
|
|
|
|
|||||||
|
North America revenue, excluding
Cameron
|
$2,261
|
$2,201
|
$2,545
|
3%
|
|
-11%
|
|||
|
International revenue, excluding
Cameron
|
$4,857
|
$4,708
|
$4,502
|
3%
|
|
8%
|
|||
|
*These are non-GAAP financial
measures. See sections titled "Charges & Credits" and
"Segments" for details.
|
|
n/m = not meaningful
|
Schlumberger CEO Olivier Le Peuch
commented, “We ended the third quarter with revenue of $8.5 billion, a 3%
sequential increase while pretax segment operating income of $1.1 billion rose
13%. I am pleased with the results and proud of the team’s performance.
Sustained international activity drove overall growth despite mixed results in
North America. The North America business saw strong offshore sales with
minimal growth on land due to slowing activity and further pricing weakness.
Third-quarter EPS of $0.43, excluding charges, was 23% higher than the second
quarter.
“Sequential international growth was
led by the Europe/CIS/Africa area, where revenue increased 9% sequentially
driven by peak summer activity in the Northern Hemisphere as well as the start
of new projects in Africa. International revenue was also driven by
double-digit growth in Asia. Latin America revenue declined 9% sequentially on
lower activity in Argentina and Mexico. Excluding Cameron, third-quarter
international revenue increased 8% year-over-year, remaining in line with our
expectations of high single-digit international growth. As we enter the fourth
quarter, international activity will be affected by the usual winter slowdown,
particularly in the Northern Hemisphere.
“In North America, offshore revenue
grew sequentially due to higher WesternGeco® multiclient
seismic license sales. Land revenue was slightly higher, as a modest increase
in OneStim® activity was offset by softer pricing while land
drilling revenue was essentially flat despite the lower rig count. As we exited
the quarter, OneStim activity decelerated as frac programs were either deferred
or cancelled due to customer budget and cash flow constraints.
“By business segment, third-quarter
sequential growth was led by a 6% increase in revenue in Reservoir
Characterization due to peak summer campaigns, particularly in the Northern
Hemisphere. Cameron revenue increased 3% sequentially from higher OneSubsea®,
Surface Systems, and Drilling Systems sales—primarily in the international
markets. Drilling and Production revenue each increased 2% sequentially on
international growth and decelerating activity in North America land.
“This quarter’s results reflected a
macro environment of slowing production growth rate in North America land as
operators maintained capital discipline, reducing drilling and frac activity.
Our year-to-date high single-digit international revenue growth continues to be
underpinned by international investment levels. Market uncertainty, however, is
weighing on future oil demand outlook in a climate where trade concerns are
seen as challenging global economic growth.
“The third quarter results reflect a
$12.7 billion pretax charge driven by market conditions. This charge is almost
entirely noncash and primarily relates to goodwill, intangible assets, and
fixed assets.
“Last month, we presented four key
elements of our new strategy: leading and driving digital transformation;
developing fit-for-basin solutions; capturing value from the performance impact
for our customers; and fostering capital stewardship. The latter involves more
stringent capex allocation and a strategic review of our portfolio—particularly
in North America—through the lens of fit-for-basin attributes, customer
performance, and return on investment.
“We are already off to a good start
on digital. We presented our vision of the future E&P industry to 800
customers and partners at the highly successful SIS Global Forum 2019. We are
committed to an open digital environment that unlocks customer performance. One
enabling element is the DELFI* cognitive E&P environment that now features
a suite of cloud-native applications that spans the E&P domains from
exploration to production, including ExplorePlan*, DrillPlan*, DrillOps*,
FDPlan*, and ProdOps* solutions.
“As we move forward, our vision is
to define and drive high performance. Simply put, we want to be the performance
partner of choice for the benefit of our customers and our industry.
Underpinned by the elements of our strategy, Schlumberger is favorably
positioned to achieve superior margin expansion, increased return on capital,
and growth in free cash flow.”
View this news release online at:
*Source: AETOSWire
Contacts
Simon Farrant – Vice President of
Investor Relations, Schlumberger Limited
Joy V. Domingo – Director of Investor Relations, Schlumberger Limited
Office +1 (713) 375-3535
investor-relations@slb.com
Joy V. Domingo – Director of Investor Relations, Schlumberger Limited
Office +1 (713) 375-3535
investor-relations@slb.com
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