Schlumberger Q3 2021 Earnings Report
Key Takeaways
Schlumberger reported strong Q3 2021 results with revenue increasing 4% sequentially and 11% year-on-year to $5.85 billion. GAAP EPS was $0.39, a 30% sequential increase, and free cash flow was $671 million. The company is confident in achieving its mid-cycle adjusted EBITDA margin ambition of 25% or higher and sustaining a double-digit free cash flow margin throughout the cycle.
Global revenue increased 4% sequentially and 11% year-on-year, reaching $5.85 billion.
GAAP EPS was $0.39, reflecting a 30% sequential increase.
Free cash flow stood at $671 million for the quarter.
Pretax segment operating margin reached its highest level since 2015.
Schlumberger
Schlumberger
Schlumberger Revenue by Segment
Schlumberger Revenue by Geographic Location
Forward Guidance
Schlumberger anticipates another quarter of growth and expects to close 2021 with strong momentum, setting the foundation for an exceptional growth cycle, driven by strengthened industry macro fundamentals.
Positive Outlook
- Demand recovery
- Oil and gas commodity prices at recent highs
- Low inventory levels
- Encouraging trends in pandemic containment efforts
- Favorable conditions expected to materially drive investment over the next few years
Challenges Ahead
- Recession
- Pandemic-related setback
- Changing global economic conditions
- Changes in exploration and production spending by Schlumberger’s customers
- General economic, geopolitical, and business conditions in key regions of the world
Revenue & Expenses
Visualization of income flow from segment revenue to net income