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Mar 31, 2020
Schlumberger Q1 2020 Earnings Report
Schlumberger's first-quarter results were impacted by the COVID-19 pandemic and a drop in oil prices, leading to a revenue decrease and a GAAP loss per share, while cost control measures and portfolio adjustments were implemented to address the challenging environment.
Key Takeaways
Schlumberger's first-quarter revenue declined by 5% year-on-year to $7.5 billion due to the impact of the COVID-19 pandemic and lower oil prices. The company reported a GAAP loss per share of $5.32, which included charges of $5.57 per share. Excluding charges, EPS was $0.25. The company focused on cost control, cash conservation, and portfolio adjustments to navigate the challenging environment.
Worldwide revenue decreased 5% year-on-year to $7.5 billion, impacted by COVID-19 and oil price decline.
GAAP loss per share was $5.32, including charges of $5.57 per share; EPS, excluding charges, was $0.25.
North America revenue decreased 17% year-on-year to $2.3 billion due to lower customer spending and drilling activity.
International revenue increased 2% year-on-year to $5.1 billion despite COVID-19 disruptions.
Schlumberger
Schlumberger
Schlumberger Revenue by Segment
Schlumberger Revenue by Geographic Location
Revenue by Segment
Reservoir Performance Revenue
CapyFin.comWell Construction Revenue
CapyFin.comProduction Systems Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comLatin America Revenue
CapyFin.comEurope & Africa Revenue
CapyFin.comMiddle East & Asia Revenue
CapyFin.com Forward Guidance
Global capex spend is expected to decline by about 20% in 2020, with North America estimated to drop by about 40%, and international E&P capex expected to decline by about 15%.
Positive Outlook
- Cost control and cash discipline through reducing structural and variable costs.
- Restructuring organization to match activity where necessary.
- Reducing capital investment program by more than 30%.
- Allocating resources to the more resilient markets.
- Focusing on capital stewardship and maintaining a strong balance sheet.
Challenges Ahead
- Uncertainty of the depth and extent of the contraction in oil demand due to the COVID-19 pandemic.
- Weaker commodity price environment.
- Expected decline in global capex spend by about 20% in 2020.
- Largest share of the reduction affecting North America, estimated to drop by about 40%.
- FID sanctions are expected to fall back to trough levels of 2015, indicating project delays to 2021 and beyond.
Revenue & Expenses
Visualization of income flow from segment revenue to net income