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Schlumberger
🇺🇸 NYSE:SLB
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•
Dec 31, 2020

Schlumberger Q4 2020 Earnings Report

Schlumberger's Q4 2020 results were announced, showcasing sequential revenue growth and margin expansion driven by industry recovery and internal performance strategy.

Key Takeaways

Schlumberger reported strong Q4 2020 results with a 5% sequential increase in revenue, driven by North America and international markets. The company's performance strategy and cost-out program led to margin reset to 2019 levels. The company sees a clear path to achieve double-digit margins in North America and visible international margin improvement in 2021.

Q4 revenue increased 5% sequentially, driven by strong activity in North America and international markets.

GAAP EPS was $0.27, and EPS excluding charges and credits was $0.22, a 37% sequential increase.

Cash flow from operations was $878 million, and free cash flow was $554 million.

Margins reset to 2019 levels amid industry recovery and execution of performance strategy.

Total Revenue
$5.53B
Previous year: $8.23B
-32.8%
EPS
$0.22
Previous year: $0.39
-43.6%
Pretax Segment Operating Margin
11.8%
Previous year: 12.2%
-3.3%
Gross Profit
$704M
Previous year: $1.1B
-36.1%
Cash and Equivalents
$3.01B
Previous year: $2.17B
+38.7%
Free Cash Flow
$554M
Previous year: $1.5B
-63.1%
Total Assets
$42.6B
Previous year: $56.3B
-24.4%

Schlumberger

Schlumberger

Schlumberger Revenue by Segment

Schlumberger Revenue by Geographic Location

Forward Guidance

Oil demand is expected to recover to 2019 levels no later than 2023, driving activity increases in North America and internationally. Spending and activity momentum will continue in North America, while international spending is expected to increase from the second quarter of 2021 onwards.

Positive Outlook

  • Oil prices have risen, buoyed by recent supply-led OPEC+ policy.
  • Ongoing COVID-19 vaccine rollout drives optimism for oil demand recovery.
  • Multinational economic stimulus actions support oil demand recovery.
  • Oil demand to recover to 2019 levels no later than 2023.
  • Increased spending is expected internationally from the second quarter of 2021 onwards.

Challenges Ahead

  • Capital discipline and industry consolidation may moderate spending in North America.
  • Seasonal effects in the first quarter of 2021 may impact international activity.
  • Potential setbacks in macro assumptions could affect activity increases.
  • COVID-19 pandemic and other widespread health emergencies may have unfavorable effects.
  • Changes in government regulations and regulatory requirements

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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