Schlumberger reports £273.81 million of net income in the fourth quarter

Written by: Wajeeh Khan
January 22, 2021
  • Schlumberger reports £273.81 million of net income in the fourth quarter.
  • The oilfield services company's revenue slides 33% on an annualised basis.
  • Schlumberger closed its North American pressure pumping deal this month.

Schlumberger (NYSE: SLB) published its earnings report for the fiscal fourth quarter on Friday that topped analysts’ estimates for earnings and revenue. The oilfield services company had come shy of forecasts in the previous three quarters.

Schlumberger shares, that you can learn to buy online here, were seen roughly 3.5% down in premarket trading on Friday. Including the price action, the stock is now exchanging hands at £17 per share. In comparison, it had plummeted to as low as £8.82 per share in March 2020 due to the COVID-19 crisis.

Schlumberger’s Q4 financial results versus analysts’ estimates

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Schlumberger said that its net income in the fourth quarter printed at £273.81 million that translates to 19.77 pence per share. In the same quarter last year, its net income was capped at a lower £243.79 million, or 17.57 pence per share. In the prior quarter (Q3), Schlumberger had registered £63.49 million of net loss, as per the report published in October.

Adjusted for one-time charges and credits, the Houston-based company earned 16.11 pence per share versus the year-ago figure of 28.55 pence per share. In terms of revenue, Schlumberger reported £4.05 billion that represents a year over year decline of 33%.

According to FactSet, experts had forecast the company to post a lower £3.84 billion of revenue in the recent quarter. Their estimate for per-share earnings stood at 12.45 pence.

Other prominent figures in Schlumberger’s financial results on Friday include a 38% annualised decline in well constructions revenue to £1.37 billion. Revenue from production systems came in at £1.21 billion – a 23% decline from last year.

Reservoir performance revenue in Q4 stood at £920 million or 41% lower than the comparable quarter of last year, while digital and integration revenue saw a 25% decline in the recent quarter to £609.84 million.

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CEO Olivier Le Peach’s comments on Friday

CEO Olivier Le Peuch commented on the earnings report on Friday and said:

“We concluded the year posting very strong fourth-quarter results, as we leveraged the industry recovery, which has now commenced.”

In an announcement in the first week of January, Schlumberger said it had closed its North American pressure pumping deal with Liberty Oilfield Services.

Schlumberger performed largely downbeat in the stock market last year with an annual decline of close to 45%. At the time of writing, the oilfield services company has a market cap of £24.65 billion.