NYSE$SLB

SLB Ltd · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Schlumberger's first-quarter results were impacted by the COVID-19 pandemic and a drop in oil prices, leading to a revenue decrease and a GAAP loss per share, while cost control measures and portfolio adjustments were implemented to address the challenging environment.

Schlumberger's first-quarter revenue declined by 5% year-on-year to $7.5 billion due to the impact of the COVID-19 pandemic and lower oil prices. The company reported a GAAP loss per share of $5.32, which included charges of $5.57 per share. Excluding charges, EPS was $0.25. The company focused on cost control, cash conservation, and portfolio adjustments to navigate the challenging environment.

  • Worldwide revenue decreased 5% year-on-year to $7.5 billion, impacted by COVID-19 and oil price decline.
  • GAAP loss per share was $5.32, including charges of $5.57 per share; EPS, excluding charges, was $0.25.
  • North America revenue decreased 17% year-on-year to $2.3 billion due to lower customer spending and drilling activity.
  • International revenue increased 2% year-on-year to $5.1 billion despite COVID-19 disruptions.

Headline financials

Total Revenue

$7.46B

Previous: $7.88B-5.4%
EPS (adj)

$0.25

Previous: $0.30-16.7%
Pretax Segment Op Margin

10.4%

Previous: 11.5%-9.6%
Cash Flow from Ops

$784M

Previous: $326M+140.5%
Capital Expenditures

-$407M

Previous: -$413M+1.5%
Free Cash Flow

-$7.78B

Previous: $8M-97387.5%
Net Income

-$7.38B

Previous: $421M-1852.0%
Operating Income

$776M

Previous: $908M-14.5%
Gross Profit

$831M

Previous: $927M-10.4%
Cash & Equivalents

$1.38B

Previous: $1.23B+11.8%
Total Assets

$48.6B

Previous: $70.3B-30.9%
Stock-Based Comp

$108M

Previous: $108M+0.0%

Revenue & EPS history

Schlumberger · Revenue · Quarterly

$7.46B

Q1 2020-5.4%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Schlumberger · $6.31B total across 3 segments · Q1 2020

  • Production Systems
    $2.7B-6.5%
  • Well Construction
    $2.29B-4.0%
  • Reservoir Performance
    $1.31B-10.1%

Forward guidance

Global capex spend is expected to decline by about 20% in 2020, with North America estimated to drop by about 40%, and international E&P capex expected to decline by about 15%.

Tailwinds

  • Cost control and cash discipline through reducing structural and variable costs.
  • Restructuring organization to match activity where necessary.
  • Reducing capital investment program by more than 30%.
  • Allocating resources to the more resilient markets.
  • Focusing on capital stewardship and maintaining a strong balance sheet.

Headwinds

  • Uncertainty of the depth and extent of the contraction in oil demand due to the COVID-19 pandemic.
  • Weaker commodity price environment.
  • Expected decline in global capex spend by about 20% in 2020.
  • Largest share of the reduction affecting North America, estimated to drop by about 40%.
  • FID sanctions are expected to fall back to trough levels of 2015, indicating project delays to 2021 and beyond.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.7%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-0.8%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+14.1%

Q3 2022

Best reaction

-8.6%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+1.8%
Q4 2025-0.9%-0.9%+3.1%
Q3 2025-0.9%+6.0%+12.2%
Q2 2025-1.0%-0.6%+6.0%
Q1 2025-1.2%-4.8%-3.6%
Q4 2024+6.4%+1.3%+1.6%
Q3 2024-3.5%-4.2%-1.8%
Q2 2024+1.5%-1.4%-8.1%
Q1 2024-2.8%-3.6%-4.6%
Q4 2023+4.4%+6.4%+0.0%
Q3 2023-1.9%-5.6%-11.9%
Q2 2023-0.4%+0.7%+1.3%
Q1 2023-3.4%-8.1%-12.9%
Q4 2022-2.6%-2.0%-7.0%
Q3 2022+14.1%+14.2%+17.0%
Q2 2022+7.6%+8.0%+10.4%
Q1 2022-4.8%-1.7%+1.2%
Q4 2021-1.2%+7.4%+8.5%
Q3 2021+0.2%-5.1%-12.4%
Q2 2021+5.3%+4.8%-5.4%
Q1 2021+4.4%+8.4%+26.5%
Q4 2020-1.9%-9.8%+8.0%
Q3 2020-8.6%-8.6%+9.6%
Q2 2020+2.0%+0.7%-3.7%
Q1 2020+8.3%+9.2%+13.5%
Q4 2019-4.7%-5.4%-11.2%
Q3 2019+5.3%+10.8%+10.9%
Q2 2019+1.8%+4.0%-15.6%
Q1 2019-3.3%-3.2%-17.7%
Q4 2018+6.3%+4.7%+8.7%
Q3 2018-2.8%-9.3%-17.5%
Q2 2018-1.8%-1.7%-6.1%
Q1 2018-1.9%-1.7%+5.7%
Q4 2017+4.5%+2.4%-13.2%
Q3 2017-4.0%-1.6%-3.9%
Q2 2017-0.9%-0.0%-5.5%
Q1 2017-3.1%-3.1%-6.2%
Q4 2016-3.4%-1.9%-7.5%
Q3 2016-3.6%-3.9%-4.1%
Q2 2016+1.3%+0.0%+3.4%
Q1 2016-1.4%
Q4 2015+6.8%
Q3 2015-0.7%
Q2 2015+0.1%
Q1 2015+0.9%
Q4 2014+3.8%
Q3 2014+5.3%
Q2 2014-3.0%
Q1 2014+0.9%
Q4 2013+2.8%
Q3 2013+2.2%
Q2 2013+6.8%
Q1 2013+0.3%
Q4 2012+6.3%
Q3 2012-2.2%
Q2 2012+1.3%
Q1 2012+0.6%
Q4 2011+2.8%
Q3 2011+11.4%
Q2 2011-2.7%
Q1 2011+0.1%
Q4 2007+0.4%
Q4 2010+0.4%
Q3 2010+0.6%
Q2 2010-0.1%
Q1 2009+4.0%
Q1 2010+2.4%
Q4 2009-0.6%
Q3 2008-0.2%
Q3 2009-0.2%
Q2 2009-2.1%
Q2 2008-2.1%
Q4 2008-2.1%

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