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Dec 31, 2021

Schlumberger Q4 2021 Earnings Report

Schlumberger's fourth-quarter results were announced, showcasing revenue growth and increased EPS.

Key Takeaways

Schlumberger reported a strong fourth quarter with revenue of $6.22 billion, a 13% increase year-over-year. GAAP EPS was $0.42, up 56% year-over-year, and non-GAAP EPS was $0.41, up 86% year-over-year. The company's free cash flow was $1.30 billion.

Revenue increased 13% year-on-year to $6.22 billion.

GAAP EPS increased 56% year-on-year to $0.42.

Non-GAAP EPS increased 86% year-on-year to $0.41.

Free cash flow was $1.30 billion.

Total Revenue
$6.23B
Previous year: $5.53B
+12.5%
EPS
$0.41
Previous year: $0.22
+86.4%
Pretax Segment Operating Margin
15.8%
Previous year: 11.8%
+33.9%
Gross Profit
$1.09B
Previous year: $704M
+54.7%
Cash and Equivalents
$3.14B
Previous year: $3.01B
+4.4%
Free Cash Flow
$1.3B
Previous year: $554M
+134.7%
Total Assets
$41.5B
Previous year: $42.6B
-2.5%

Schlumberger

Schlumberger

Schlumberger Revenue by Segment

Schlumberger Revenue by Geographic Location

Forward Guidance

Schlumberger anticipates a material step up in industry capital spending with simultaneous double-digit growth in international and North American markets due to favorable industry macro fundamentals.

Positive Outlook

  • Steady demand recovery is projected.
  • The supply market is increasingly tight.
  • Oil prices are supportive.
  • Schlumberger has reset its operating leverage.
  • Peer-leading margins have expanded across multiple quarters.

Challenges Ahead

  • Further COVID-related disruptions are a risk.
  • There may be delivery delays in the Middle East & Asia as a result of global supply and logistics constraints.
  • There was a temporary production interruption in APS projects in Ecuador due to pipeline disruption.
  • Seasonal effects in Russia and Scandinavia reduced Reservoir Performance and Well Construction activity.
  • Production Systems pretax operating margin declined 85 bps sequentially due to an unfavorable mix and the impact of delayed deliveries due to global supply and logistics constraints.

Revenue & Expenses

Visualization of income flow from segment revenue to net income