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Sep 30, 2020
Schlumberger Q3 2020 Earnings Report
Schlumberger's Q3 2020 results highlighted focus on execution, returns, and customer performance amidst a challenging environment, with sequential margin expansion and progress in cost reduction programs.
Key Takeaways
Schlumberger's Q3 2020 revenue was $5.3 billion, a 2% sequential decrease. EPS, excluding charges and credits, was $0.16. The company focused on execution, returns, and customer performance, with sequential margin expansion and progress in cost reduction programs. They also expect to realize the vast majority of these savings as they exit this year.
Worldwide revenue decreased 2% sequentially to $5.3 billion.
EPS, excluding charges and credits, was $0.16.
Margins expanded sequentially, with pretax segment operating income and adjusted EBITDA growing 45% and 21%, respectively.
The company's cost-reduction program is progressing well, expected to permanently remove $1.5 billion of structural costs on an annual basis.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Schlumberger anticipates continued benefits from its strategy, disciplined approach to North America, and the strength of its international business in Q4 2020. The company expects improving DUC well completion activity in US land and a modest drilling resumption in the US and Canada. Internationally, activity is steady following budget resets, with the near-term recovery remaining fragile due to potential COVID-19 waves.
Positive Outlook
- Continued momentum in North America with improving DUC well completion activity.
- Modest drilling resumption in the US and Canada.
- Steady international activity following budget resets.
- Improving demand recovery supported by government measures.
- Continued supply discipline from major producers.
Challenges Ahead
- Seasonal decline in the Northern Hemisphere.
- Muted year-end product and multiclient license sales.
- Near-term recovery remains fragile due to potential COVID-19 waves.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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