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Mar 31, 2021
Schlumberger Q1 2021 Earnings Report
Schlumberger's first-quarter results were announced, revealing a sequential revenue decline primarily due to North American divestitures, but international growth and cost management efforts led to maintained EBITDA margins and increased pretax segment operating income.
Key Takeaways
Schlumberger's first-quarter 2021 results showed a sequential revenue decrease of 6% due to North American divestitures, offset by international growth. EPS was $0.21, and free cash flow reached $159 million. The company is optimistic about international growth and expects double-digit revenue growth in the second half of 2021.
Worldwide revenue was $5.2 billion.
International revenue reached $4.2 billion, while North America contributed $972 million.
Earnings per share (EPS) stood at $0.21.
Free cash flow was $159 million.
Schlumberger
Schlumberger
Schlumberger Revenue by Segment
Schlumberger Revenue by Geographic Location
Revenue by Segment
Digital & Integration Revenue
CapyFin.comReservoir 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
Schlumberger anticipates North America activity to level off at production maintenance levels, while international activity is poised to ramp up through year-end 2021 and beyond. They expect to significantly benefit from this anticipated shift to increased international activity and are increasingly confident that their international revenue will see double-digit growth in the second half of 2021 as compared to the same period last year.
Positive Outlook
- Vaccination programs and fiscal stimulus packages are expected to support a rebound of economic activity and oil demand recovery through the year.
- Industry analysis estimates 5–6 million bbl/d of oil demand will be added by the end of the year.
- Demand recovery is projected to improve in the second quarter, exiting the year just 2 million bbl/d short of 2019 levels.
- International activity is poised to ramp up through year-end 2021 and beyond.
- International revenue will see double-digit growth in the second half of 2021 as compared to the same period last year.
Challenges Ahead
- The world is still grappling with COVID-19 infection rates.
- First-quarter revenue declined 6% sequentially.
- Offshore revenue declined 10% sequentially following the seasonal fourth-quarter year-end product sales.
- International revenue in the quarter reflects the usual seasonal dip, though China and Russia experienced a particularly severe winter.
- Digital & Integration revenue decreased 7% sequentially due to seasonally lower sales of software and multiclient seismic data licenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income