Thu, Apr. 16, 5:27 PM
- Schlumberger (NYSE:SLB) +2.5% AH after Q1 earnings fell sharply Y/Y but beat Wall Street estimates, and the company said it would cut another 2K jobs.
- SLB now plans to cut another 11K jobs, leading to a total workforce reduction of ~15% compared to the peak from last year's Q3, after laying off 9K employees late last year; SLB recorded a related $390M pretax charge in Q1.
- SLB had warned that its North American operations would be hardest hit by the plunge in oil prices, and its Q1 North America revenue fell 13% to $3.2B; most of SLB’s operations are international, where Q1 revenue fell 8% to $6.9B.
- CEO Paal Kibsgaard says the company believes "a recovery in U.S. land drilling activity will be pushed out in time, as the inventory of uncompleted wells builds and as the re-fracturing market expands, [but] a recovery in activity will fall well short of reaching previous levels, hence extending the period of pricing weakness."
- SLB also says it is cutting its 2015 capex guidance to $2.5B from an earlier estimate of $3B and down from $4B spent last year.
- S&P analyst Stewart Glickman says it is hard to see where the company and its rivals can cut without slicing into muscle.
- SLB's two largest competitors, Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) - which agreed to merge last year - are scheduled to report earnings next week.
Thu, Apr. 16, 4:09 PM
Wed, Apr. 15, 5:35 PM
Thu, Jan. 15, 5:19 PM
- Schlumberger (NYSE:SLB) +0.6% AH after reporting Q4 earnings fell 82% Y/Y as it wrote down $1.7B in assets, but adjusted earnings beat Wall Street estimates.
- SLB says it plans to cut 9,000 employees, or ~7.5% of its workforce around the globe, and recorded a related $296M charge.
- Q4 results were driven by growth in North America, where revenue rose 16% to a record $16.15B; international revenue rose 4% to $32.1B, as strength in the Middle East and Asia was partially offset by a significant decline in revenue from Russia.
- Expects 2015 capex of ~$3B, down from $4B last year.
- SLB reported earlier that it raised its dividend 25% to $0.50/share.
Thu, Jan. 15, 4:17 PM
Wed, Jan. 14, 5:35 PM
Oct. 16, 2014, 5:13 PM
- Schlumberger (NYSE:SLB) +1.5% AH after Q3 earnings rose 14% Y/Y and beat analyst expectations on solid revenue growth led by its North American operations.
- Q3 revenue at SLB’s North American operations rose 18% to $4.3B, while revenue in international segments gained 5% to $8.3B, led by growth in the Middle East and Asia segment of 6.3%; SLB cites the revenue increase to strong deepwater activity in Mexico, Russia and offshore North America.
- SLB: "While market sentiments are currently driven by fear of short-term oversupply, and although the oil demand outlook has been revised slightly downwards, we see little reason at the present time to change our view [of] a supply-demand situation that is relatively well-balanced."
Oct. 16, 2014, 4:08 PM
Oct. 16, 2014, 10:58 AM
- Baker Hughes (BHI -10.2%) CEO Martin Craighead says during this morning's earnings conference call that oil prices below $75/bbl for a few months may cause energy companies to pull back spending on exploration and production.
- But BHI customers don’t believe oil prices will stay low, the CEO says, adding that “the returns are still quite attractive... right now, it’s full steam ahead.”
- Craighead says BHI is on pace to deliver solid results in Q4, deepwater projects are moving forward, and customers spending should remain stable.
- T. Boone Pickens, among others, have said $80 U.S. oil for a quarter would cause E&P companies to reassess; West Texas crude fell below $80 this morning for the first time since June 2012, and now trades at ~$81.
- Schlumberger (SLB -0.6%), the no. 1 supplier of oilfield services, is scheduled to release quarterly results after today's close.
- Earlier: Baker Hughes misses estimates on weaker Gulf of Mexico drilling activity.
- ETFs: USO, OIL, UCO, OIH, SCO, BNO, DTO, DBO, CRUD, USL, UWTI, DNO, DWTI, SZO, OLO, TWTI, OLEM
Oct. 16, 2014, 7:55 AM
- Baker Hughes (NYSE:BHI) -10.8% premarket after Q3 earnings rose 10% Y/Y but missed estimates, as political tensions in Libya and Iraq plus a sharp fall in drilling activity in the Gulf of Mexico weighed on margins.
- Q3 pre-tax profit margins in its operations in Europe, Africa and the Russia Caspian region fell to 8% from 17% in the year-ago quarter.
- Revenue of the North American segment, BHI's largest geographic business by revenue, rose 11% to $3.2B, and climbed 6% in the Middle East and Asia Pacific region, 8% in the Europe, Africa and Russia Caspian segment, and 3% in Latin America.
- Oil services stocks (NYSEARCA:OIH) to watch: HAL, SLB. SPN, NOV, CAM, FTI, DRQ.
Oct. 15, 2014, 5:35 PM
Jul. 17, 2014, 5:44 PM
- Schlumberger (NYSE:SLB) -1.4% AH after reporting a 24% Y/Y drop in Q2 earnings despite higher revenue driven by higher activity both offshore and in key land markets.
- Revenue in North America rose 15% to $3.89B, while the Middle East and Asia saw 11.7% growth to $2.97M, and Europe, Africa and the CIS rose 4% to $3.23B; Latin American revenue fell ~3% to $1.85B.
- SLB says strong drilling activity in the Gulf of Mexico and a rise in U.S. onshore drilling more than offset seasonal weakness in Canada, but the company has less exposure to North America among the top oilfield service providers, which include Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
- SLB says the overall global economic outlook remains mixed, although "the fundamentals for a slow and steady recovery... remain intact."
Jul. 17, 2014, 4:07 PM| Comment!
Jul. 16, 2014, 5:35 PM
Apr. 28, 2014, 1:50 PM
- National Oilwell Varco (NOV -7.2%) is suffering its worst day in more than two years after reporting that Q1 orders for new offshore rig equipment fell 23% Y/Y to $2.33B and forecasting a continued slowdown in orders.
- Backlog for new rig technology equipment, which hit a record during Q1 at $16.4B, should fall to $14B-$15B by year-end, CEO Clay Williams said on today's earnings call.
- "The newbuild rig market is starting to show signs of shakiness," says Iberia Capital analyst Trey Stolz.
- Other energy equipment providers also are lower: SLB -1.1%, BHI -1.2%, CAM -1.4%, FTI -1.2%, DRQ -1.2%, FET -1%.
Apr. 17, 2014, 8:28 AM
- Schlumberger (SLB) +0.3% premarket as Q1 earnings rose 26% Y/Y despite a harsher than usual weather in North America and Russia that dented demand for its drilling, well completion and other services.
- Revenue jumped 19% from the Middle East and Asia, rose 12% from North America, edged up less than 1% from Europe/CIS/Africa, and fell 7% from Latin America.
- SLB predicts a rise in spending among clients of more than 6% this year, evenly split between the international and North American markets and driven by the independent and national oil companies.
SLB vs. ETF Alternatives
Schlumberger NV is a supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry. Its business segments areReservoir Characterization Group, Drilling Group and Production Group.
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