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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.
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
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