How Did Schlumberger Perform In Q3?

Schlumberger N.V. SLB reported a third-quarter FY23 revenue increase of 11% year-over-year to $8.31 billion, missing the consensus of $8.33 billion.

Revenue by Division: Digital & Integration $982 million (+9% Y/Y); Reservoir Performance $1.68 billion (+15% Y/Y); Well Construction $3.43 billion (+11% Y/Y), and Production Systems $2.37 billion (+10% Y/Y).

Adjusted EPS increased 24% Y/Y to $0.78, beating the consensus of $0.77.

Adjusted EBITDA was $2.08 billion for the quarter, an increase of 18% Y/Y, and margin expanded 155 bps to 25%.

The pretax segment operating margin expanded by 153 bps for the quarter to 20.3%.

Operating cash flow for the nine months ended September 30, 2023, totaled $3.62 billion, compared to $2.11 billion a year ago. Free cash flow was $1.76 billion.

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“Third-quarter revenue increased 3% sequentially—by more than $200 million—driven by the Middle East & Asia, which increased 8% in the quarter and continues to demonstrate positive investment momentum. Our strong quarterly performance was propelled by broad-based growth across Saudi Arabia, the United Arab Emirates, Indonesia, China, Malaysia, Kuwait, and Oman,” commented CEO Olivier Le Peuch.

“In the fourth quarter, we expect continued sequential revenue growth driven by year-end sales in Digital & Integration and seasonal product and equipment sales in Production Systems. In addition, the fourth quarter will reflect the results of the OneSubsea joint venture,” added CEO Olivier Le Peuch.

During the quarter, SLB repurchased 2.6 million shares at an average price of $57.46 per share for a total purchase price of $151 million.

Dividend: SLB’s Board of Directors approved a quarterly cash dividend of $0.25 per share, payable on January 11, 2024, to stockholders of record on December 6, 2023.

The company reiterated its capital investment forecast for FY23 to be ~$2.5-$2.6 billion versus $2.3 billion in 2022.

Price Action: SLB shares are trading lower by 2.27% at $58.61 premarket on the last check Friday.