SLB: Schlumberger Limited (NYSE: SLB)

Schlumberger Limited (NYSE: SLB) recently stated results for the 3rd-quarter of 2k19.

  • Worldwide revenue of $8.50B raised 3.0 percent sequentially
  • International revenue of $5.60B raised 3.0 percent sequentially
  • North America revenue of $2.80B raised 2.0 percent sequentially
  • GAAP loss for each share, counting charges of $8.650 for each share, was $8.220
  • EPS, apart from charges, was $0.430 representing a 23.00 percent sequential incline
  • Cash flow from operations was $1.70B and free cash flow was $1.10B
  • Board approved a quarterly cash dividend of $0.500 for each share

Schlumberger CEO Olivier Le Peuch commented, “We ended the 3rd-quarter with revenue of $8.50B, a 3.0 percent sequential incline while pretax segment operating income of $1.10B rose 13.00 percent. I am happy 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 because of slowing activity and further pricing weakness. Third-quarter EPS of $0.430, apart from charges, was 23.00 percent higher than the 2nd-quarter.

Other Events

In connection with the preparation of its 3rd-quarter fiscal statements, Schlumberger recorded a $12.70B pretax charge mainly regarding the impairment of goodwill, intangible assets, and fixed assets. Please refer to sections titled “Charges & Credits” and “Supplementary Information“ (items 13 and 14) for details.

During the quarter, Schlumberger repurchased 2.20M shares of its common stock at an average price of $36.640 for each share, for a total purchase price of $79.00M.

During September, Schlumberger issued EUR 500.00M of 0.00 percent Notes due 2k24, EUR 500.00M of 0.250 percent Notes due 2k27, and EUR 500.00M of 0.50 percent Notes due 2k31. These notes were subsequently swapped into US dollars with a weighted-average interest rate of 2.520 percent.

During September, Schlumberger repurchased $783.00M of its outstanding 3.0 percent Notes due 2k20 and $321.00M of its outstanding 3.625 percent Notes 2k22.

On October 2, 2k19, Schlumberger and Rockwell Automation declared the closing of their formerly declared joint venture, Sensia—the oil and gas industry’s 1st-digitally facilitated, integrated automation solutions provider. Rockwell Automation owns 53.00 percent of the joint venture and Schlumberger owns 47.00 percent. At closing, Rockwell Automation made a $250.00M cash payment to Schlumberger.

On October 17, 2k19, Schlumberger’s Board of Directors approved a quarterly cash dividend of $0.500 for each share of outstanding common stock, payable on January 10, 2k20 to stockholders of record on December 4, 2k19.

Third-quarter revenue of $8.50B raised 3.0 percent sequentially. North America revenue of $2.80B raised 2.0 percent, while international revenue of $5.60B raised 3.0 percent.

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