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Schlumberger (SLB) Beats Earnings & Revenue Estimates in Q3

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Schlumberger Limited (SLB - Free Report) has reported third-quarter 2022 earnings of 63 cents per share (excluding charges and credits), comfortably beating the Zacks Consensus Estimate of 55 cents. The bottom line significantly increased from the year-ago quarter’s earnings of 36 cents.

The oilfield service giant recorded total quarterly revenues of $7,477 million, outpacing the Zacks Consensus Estimate of $7,143 million. The top line also improved from the year-ago quarter’s $5,847 million.

The strong quarterly results were primarily driven by strong activities in land and offshore resources in North America and Latin America.

Schlumberger Limited Price, Consensus and EPS Surprise

 

Schlumberger Limited Price, Consensus and EPS Surprise

Schlumberger Limited price-consensus-eps-surprise-chart | Schlumberger Limited Quote

Segmental Performance

Revenues in the Digital & Integration unit totaled $900 million, up 11% from the year-ago quarter’s levels. Pre-tax operating income of $305 million was up 7%. The outperformance resulted from higher digital sales across all areas and APS project revenues, mainly in Canada.

Revenues in the Reservoir Performance unit increased 22% year over year to $1,456 million. Pre-tax operating income was $244 million, rising 28%. The upside in profit was led by higher land and offshore activities.

Revenues in the Well Construction segment rose 36% from the year-earlier quarter’s level to $3,084 million. Pre-tax operating income improved 92% to $664 million. Strong activities in land and offshore resources in North America and Latin America aided the segment.

Revenues in the Production Systems segment amounted to $2,150 million, up 28% from the year-ago quarter’s numbers. Pre-tax operating income improved 36% year over year to $224 million. The segment was aided by new projects and increased product deliveries, particularly in Europe/CIS/Africa, North America, and Latin America.

Cash Flow & Financials

Schlumberger generated a free cash flow of $1,063 million.

The capital expenditure of Schlumberger in the quarter was $382 million. As of Sept 30, 2022, the company had approximately $3,609 million in cash and short-term investments. It had long-term debt of $12,452 million at the end of the third quarter.

Outlook

For 2022, Schlumberger has given its capital budget of $2.2 billion.

Zacks Rank & Other Stocks to Consider

Schlumberger currently carries a Zacks Rank #2 (Buy).

Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.

Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.

The Williams Companies, Inc. (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB’s board recently approved a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.

Williams is scheduled to report third-quarter results on Oct 31. The Zacks Consensus Estimate for WMB’s earnings is pegged at 42 cents per share, suggesting a significant increase from the prior-year reported figure.

Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. The fuel retailer approved a repurchase authorization of up to $1 billion, which will commence once the existing $500-million authorization expires and be completed by Dec 31, 2026.

Murphy USA is scheduled to release third-quarter earnings on Oct 26. The Zacks Consensus Estimate for MUSA’s earnings is pegged at $7.82 per share, suggesting a massive increase from the prior-year reported figure.

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