NYSE$SLB

SLB Ltd · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Schlumberger's Q3 2022 results were announced, demonstrating revenue growth and margin expansion driven by international momentum and solid execution.

Schlumberger reported strong Q3 2022 results with a 10% sequential increase in revenue to $7.5 billion and a 26% sequential increase in EPS, excluding charges and credits, to $0.63. The company's pretax segment operating margin expanded by 161 basis points to 18.7%, and free cash flow was $1.1 billion. International revenue grew significantly, exceeding 2019 levels, and the company saw strong growth in Well Construction and Production Systems divisions.

  • Total revenue increased 10% sequentially and 28% year-on-year, reaching $7.5 billion.
  • International revenue grew 13% sequentially and 26% year-on-year, surpassing pre-pandemic levels.
  • EPS, excluding charges and credits, rose 26% sequentially and 75% year-on-year, achieving the highest level since 2015.
  • Pretax segment operating margin expanded 161 basis points sequentially and 320 basis points year-on-year, also reaching the highest level since 2015.

Headline financials

Total Revenue

$7.48B

Previous: $5.85B+27.9%
EPS (adj)

$0.63

Previous: $0.36+75.0%
Adjusted EBITDA Margin

23.5%

Previous: 22.2%+5.9%
Pretax Segment Op Margin

18.7%

Previous: 15.5%+20.6%
Capital Expenditures

-$1.05B

Previous: -$694M-50.7%
Free Cash Flow

-$139M

Previous: -$144M+3.5%
Net Income

$907M

Previous: $550M+64.9%
Operating Income

$1.4B

Previous: $908M+54.2%
Gross Profit

$1.44B

Previous: $985M+45.7%
Cash & Equivalents

$2.18B

Previous: $1.57B+38.9%
Total Assets

$44.1B

Previous: $41B+7.4%
Stock-Based Comp

$76M

Previous: $73M+4.1%

Revenue & EPS history

Schlumberger · Revenue · Quarterly

$7.48B

Q3 2022+27.9%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Schlumberger · $7.59B total across 4 segments · Q3 2022

  • Well Construction
    $3.08B+35.7%
  • Production Systems
    $2.15B+28.4%
  • Reservoir Performance
    $1.46B+22.1%
  • Digital
    $900M+10.8%

Forward guidance

Schlumberger anticipates continued sequential revenue growth and margin expansion in the fourth quarter, driven by constructive market fundamentals for oil and gas, energy security, and the urgency to accelerate the energy transition.

Tailwinds

  • Constructive market fundamentals for oil and gas.
  • Increased energy security concerns.
  • Urgency to accelerate the energy transition.
  • Increased investment in clean energy technology development.
  • Increased investment in lower carbon oil and gas production.

Headwinds

  • Concerns remain over the broader economic climate.
  • Limited spare global capacity.
  • Geopolitical factors.
  • Increasing instances of supply disruptions.
  • Near-term demand volatility.

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 2022

Historical avgQ3 2022

+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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