NYSE$SLB

SLB Ltd · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Schlumberger's Q3 2021 performance saw revenue growth, margin expansion, and solid free cash flow, driven by Well Construction and Reservoir Performance divisions.

Schlumberger reported strong Q3 2021 results with revenue increasing 4% sequentially and 11% year-on-year to $5.85 billion. GAAP EPS was $0.39, a 30% sequential increase, and free cash flow was $671 million. The company is confident in achieving its mid-cycle adjusted EBITDA margin ambition of 25% or higher and sustaining a double-digit free cash flow margin throughout the cycle.

  • Global revenue increased 4% sequentially and 11% year-on-year, reaching $5.85 billion.
  • GAAP EPS was $0.39, reflecting a 30% sequential increase.
  • Free cash flow stood at $671 million for the quarter.
  • Pretax segment operating margin reached its highest level since 2015.

Headline financials

Total Revenue

$5.85B

Previous: $5.26B+11.2%
EPS (adj)

$0.36

Previous: $0.16+125.0%
Adjusted EBITDA Margin

22.2%

Previous: 19.4%+14.4%
Pretax Segment Op Margin

15.5%

Previous: 10.9%+42.2%
Capital Expenditures

-$694M

Previous: -$858M+19.1%
Free Cash Flow

-$144M

Previous: -$940M+84.7%
Net Income

$550M

Previous: -$82M+770.7%
Operating Income

$908M

Previous: $575M+57.9%
Gross Profit

$985M

Previous: $634M+55.4%
Cash & Equivalents

$1.57B

Previous: $1.22B+28.7%
Total Assets

$41B

Previous: $44.1B-6.9%
Stock-Based Comp

$73M

Previous: $105M-30.5%

Revenue & EPS history

Schlumberger · Revenue · Quarterly

$5.85B

Q3 2021+11.2%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Schlumberger · $5.95B total across 4 segments · Q3 2021

  • Well Construction
    $2.27B
  • Production Systems
    $1.67B-7.1%
  • Reservoir Performance
    $1.19B
  • Digital
    $812M

Forward guidance

Schlumberger anticipates another quarter of growth and expects to close 2021 with strong momentum, setting the foundation for an exceptional growth cycle, driven by strengthened industry macro fundamentals.

Tailwinds

  • Demand recovery
  • Oil and gas commodity prices at recent highs
  • Low inventory levels
  • Encouraging trends in pandemic containment efforts
  • Favorable conditions expected to materially drive investment over the next few years

Headwinds

  • Recession
  • Pandemic-related setback
  • Changing global economic conditions
  • Changes in exploration and production spending by Schlumberger’s customers
  • General economic, geopolitical, and business conditions in key regions of the world

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 2021

Historical avgQ3 2021

+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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