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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.
Revenue by Segment
Revenue by Geographic Location
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%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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