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Dec 31, 2019
Schlumberger Q4 2019 Earnings Report
Schlumberger's Q4 2019 earnings decreased sequentially but increased year-on-year, driven by international growth and North America weakness.
Key Takeaways
Schlumberger's Q4 2019 revenue was $8.2 billion, a 4% decrease sequentially. GAAP EPS was $0.24, and non-GAAP EPS was $0.39. International revenue grew 2% sequentially, while North America revenue declined 14%. The company generated $1.5 billion in free cash flow.
Fourth-quarter revenue decreased 4% sequentially due to North America weakness.
International revenue grew 2% sequentially and 8% year-on-year.
GAAP EPS was $0.24, while EPS excluding charges and credits was $0.39.
The company focused on international growth and cost management in North America.
Schlumberger
Schlumberger
Schlumberger Revenue by Segment
Schlumberger Revenue by Geographic Location
Revenue by Segment
Reservoir 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 mid-single-digit growth in E&P capex spending in international markets for 2020. International revenue is expected to grow at the same pace or higher, excluding the effects of the Sensia and Drilling Tools transactions. North America will continue to scale-to-fit, focusing on asset-light operations and technology access business models. The company is confident in its ability to improve cash flow generation in 2020.
Positive Outlook
- 2020 oil demand growth sentiment turning positive
- Fall in the North America production growth estimate
- Escalation of geopolitical risk should set the floor for the oil price
- International portfolio revenue to grow at same pace or higher
- Focus on improved margins, capital stewardship, and careful management of working capital
Challenges Ahead
- OPEC+ production cuts agreed upon in December 2019 to limit investment and activity
- Conditions in North America land became more challenging
- Continuing to scale-to-fit organization and portfolio
- Repurposing or exiting underperforming business units
- Closing of a significant number of facilities and workforce reductions
Revenue & Expenses
Visualization of income flow from segment revenue to net income