NYSE$SLB

SLB Ltd · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Schlumberger's Q3 2020 results highlighted focus on execution, returns, and customer performance amidst a challenging environment, with sequential margin expansion and progress in cost reduction programs.

Schlumberger's Q3 2020 revenue was $5.3 billion, a 2% sequential decrease. EPS, excluding charges and credits, was $0.16. The company focused on execution, returns, and customer performance, with sequential margin expansion and progress in cost reduction programs. They also expect to realize the vast majority of these savings as they exit this year.

  • Worldwide revenue decreased 2% sequentially to $5.3 billion.
  • EPS, excluding charges and credits, was $0.16.
  • Margins expanded sequentially, with pretax segment operating income and adjusted EBITDA growing 45% and 21%, respectively.
  • The company's cost-reduction program is progressing well, expected to permanently remove $1.5 billion of structural costs on an annual basis.

Headline financials

Total Revenue

$5.26B

Previous: $8.54B-38.4%
EPS (adj)

$0.16

Previous: $0.43-62.8%
Adjusted EBITDA

$1.02B

Previous: $1.77B-42.6%
Adjusted EBITDA Margin

19.4%

Previous: 20.8%-6.7%
Pretax Segment Op Margin

10.9%

Previous: 12.8%-14.8%
Capital Expenditures

-$858M

Previous: -$1.23B+30.2%
Free Cash Flow

-$940M

Previous: -$12.6B+92.5%
Net Income

-$82M

Previous: -$11.4B+99.3%
Operating Income

$575M

Previous: $1.1B-47.5%
Gross Profit

$634M

Previous: $1.16B-45.2%
Cash & Equivalents

$1.22B

Previous: $1.18B+3.0%
Total Assets

$44.1B

Previous: $58B-24.0%
Stock-Based Comp

$105M

Previous: $135M-22.2%

Revenue & EPS history

Schlumberger · Revenue · Quarterly

$5.26B

Q3 2020-38.4%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Schlumberger · $8.46B total across 4 segments · Q3 2023

  • Well Construction
    $3.43B+11.2%
  • Production Systems
    $2.37B+10.1%
  • Reservoir Performance
    $1.68B+15.4%
  • Digital
    $982M+9.1%

Forward guidance

Schlumberger anticipates continued benefits from its strategy, disciplined approach to North America, and the strength of its international business in Q4 2020. The company expects improving DUC well completion activity in US land and a modest drilling resumption in the US and Canada. Internationally, activity is steady following budget resets, with the near-term recovery remaining fragile due to potential COVID-19 waves.

Tailwinds

  • Continued momentum in North America with improving DUC well completion activity.
  • Modest drilling resumption in the US and Canada.
  • Steady international activity following budget resets.
  • Improving demand recovery supported by government measures.
  • Continued supply discipline from major producers.

Headwinds

  • Seasonal decline in the Northern Hemisphere.
  • Muted year-end product and multiclient license sales.
  • Near-term recovery remains fragile due to potential COVID-19 waves.
  • Potential significant risk to the outlook due to subsequent COVID-19 waves.
  • Flattening near-term activity outlook.

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 Q3 2020

Historical avgQ3 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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