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Jun 30, 2021
Schlumberger Q2 2021 Earnings Report
Schlumberger's Q2 2021 results were announced, demonstrating portfolio strength and market participation, with sequential revenue growth and margin expansion.
Key Takeaways
Schlumberger reported a strong second quarter in 2021, with global revenue increasing by 8% sequentially. EPS increased 43% sequentially, and the company generated $869 million in free cash flow. The company is on track to achieve its full-year financial targets.
Global revenue increased 8% sequentially, outperforming rig count growth.
North America revenue grew 11% sequentially, driven by US land revenue.
International revenue grew 7% sequentially, with growth in all four divisions.
Pretax segment operating income increased 22% sequentially, with margin expansion.
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.com Forward Guidance
Schlumberger anticipates continued international activity growth in the second half of 2021 and expects international revenue to grow by double-digits compared to the second half of last year. In North America, the growth rate is expected to moderate, but drilling activity could surprise to the upside.
Positive Outlook
- Industry projections of oil demand reflect the anticipation of a wider vaccine-enabled recovery.
- Improving road mobility.
- Impact of various economic stimulus programs.
- Momentum of international activity growth experienced in the second quarter will continue as the cyclical recovery unfolds.
- Drilling activity in North America could still surprise to the upside due to private E&P operator spending.
Challenges Ahead
- The rise of the COVID-19 Delta variant and resurgence of related disruptions could impact the pace of economic reopening.
- Potential setbacks in the recovery.
- Uncertainty in global economic conditions.
- Changes in exploration and production spending.
- Foreign currency risk and pricing pressure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income