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Mar 31, 2022

Schlumberger Q1 2022 Earnings Report

Schlumberger's first-quarter performance was marked by revenue growth and increased profitability, driven by the strength of core services and broad-based activity increase.

Key Takeaways

Schlumberger's first-quarter results showed a 14% year-on-year increase in revenue, with GAAP EPS up by 71% and EPS excluding charges and credits up by 62%. The company's performance was driven by strong growth in Well Construction and Reservoir Performance divisions, reflecting a robust outlook for the energy services industry.

Revenue increased by 14% year-on-year, reaching $6.0 billion.

GAAP EPS increased by 71% year-on-year to $0.36.

EPS, excluding charges and credits, increased by 62% year-on-year to $0.34.

The board approved a 40% increase in the cash dividend to $0.175 per share.

Total Revenue
$5.96B
Previous year: $5.22B
+14.1%
EPS
$0.34
Previous year: $0.21
+61.9%
Pretax Segment Operating Margin
15%
Previous year: 12.7%
+18.1%
Gross Profit
$949M
Previous year: $719M
+32.0%
Free Cash Flow
-$173M
Previous year: $159M
-208.8%
Total Assets
$42B
Previous year: $42B
-0.2%

Schlumberger

Schlumberger

Schlumberger Revenue by Segment

Schlumberger Revenue by Geographic Location

Forward Guidance

Schlumberger anticipates maintaining full-year ambitions of year-on-year revenue growth in the mid-teens and adjusted EBITDA margins exiting the year at least 200 basis points higher than the fourth quarter of 2021, with a positive outlook extending into 2023 and beyond.

Positive Outlook

  • Increased activity both on land and offshore
  • Higher technology adoption
  • Pricing momentum will drive simultaneous growth internationally and in North America
  • Sequential seasonal rebound in the second quarter
  • Significant growth in the second half of the year, particularly in the international market

Challenges Ahead

  • Uncertainty linked to Russia
  • Potential setback in the economic recovery
  • Decline in Europe/CIS/Africa more pronounced due to the depreciation of the ruble
  • Global supply chain constraints impacting Production Systems
  • Seasonal activity decline in the Northern Hemisphere

Revenue & Expenses

Visualization of income flow from segment revenue to net income