Schlumberger Shares Gain On Q2 Beat, Raised FY22 Guidance

  • Schlumberger NV SLB reported second-quarter revenue growth of 20% year-over-year to $6.8 billion, beating the consensus of $6.14 billion.
  • Adjusted EPS improved to $0.50 (+67% Y/Y), beating the consensus of $0.39.
  • Revenue by divisions: Digital & Integration $955 million (+17% Y/Y), Reservoir Performance $1.33 billion (+19% Y/Y), Well Construction $2.69 billion (+27% Y/Y), and Production Systems $1.89 billion (+13% Y/Y).
  • The quarter's growth was broad-based, driven by increased activity internationally, in North America, and across all divisions. It was also characterized by a favorable mix of exploration and offshore activity and the increasing impact of improved pricing.
  • Adjusted EBITDA increased 28% Y/Y to $1.53 billion, and margin expanded by 132 bps to 22.6%.
  • Pretax segment operating income increased 44% Y/Y to $1.16 billion, and the margin expanded by 279 bps to 17.1%.
  • Dividend: SLB declared a quarterly cash dividend of $0.175 per share of outstanding common stock, payable on October 13, 2022, to stockholders of record on September 7, 2022.
  • Schlumberger generated cash from operations year-to-date of $539 million. Free cash outflow was $500 million.
  • "As a result of this performance and based on our updated outlook for the remainder of the year, 2022 year-on-year revenue growth is now expected to be in the high-teens which translates to full-year revenue of at least $27 billion. We expect this higher revenue to result in earnings that exceed our previous expectations, given our ambition to exit the year with adjusted EBITDA margins 200 basis points higher than in the fourth quarter of 2021," stated CEO Olivier Le Peuch.
  • Price Action: SLB shares are trading higher by 7.14% at $36.03 on the last check Friday.
  • Photo Via Company
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