NYSE$SLB

SLB Ltd · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

SLB reported strong Q4 2022 results, with revenue growth across all divisions and geographical areas.

SLB's Q4 2022 revenue increased by 5% sequentially and 27% year-on-year to $7.9 billion. GAAP EPS increased 17% sequentially and 76% year-on-year to $0.74. EPS, excluding charges and credits, increased 13% sequentially and 73% year-on-year to $0.71. Cash flow from operations was $1.6 billion and free cash flow was $0.9 billion.

  • Revenue grew across all Divisions and geographical areas.
  • EPS, excluding charges and credits, expanded to $0.71.
  • Adjusted EBITDA margins grew to 24.4%, exceeding the target exit rate.
  • Pretax segment operating margins and EPS were the highest since 2015.

Headline financials

Total Revenue

$7.88B

Previous: $6.23B+26.6%
EPS (adj)

$0.71

Previous: $0.41+73.2%
Adjusted EBITDA Margin

24.4%

Previous: 22.2%+9.9%
Capital Expenditures

$572M

Previous: $447M+28.0%
Free Cash Flow

$900M

Previous: $1.3B-30.8%
Net Income

$1.07B

Previous: $601M+77.2%
Operating Income

$1.35B

Previous: $755M+78.4%
Gross Profit

$1.57B

Previous: $1.09B+44.3%
Cash & Equivalents

$2.89B

Previous: $3.14B-7.8%
Total Assets

$43.1B

Previous: $41.5B+3.9%
Stock-Based Comp

$77M

Previous: $95M-18.9%

Revenue & EPS history

Schlumberger · Revenue · Quarterly

$7.88B

Q4 2022+26.6%vs Q4 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Schlumberger · $8.01B total across 4 segments · Q4 2022

  • Well Construction
    $3.23B+35.2%
  • Production Systems
    $2.22B+25.5%
  • Reservoir Performance
    $1.55B+20.7%
  • Digital
    $1.01B+13.8%

Forward guidance

SLB anticipates a strong multi-year upcycle for energy, underpinned by compelling macro and market fundamentals.

Tailwinds

  • Oil and gas demand is forecast to grow.
  • Markets remain tightly supplied.
  • Energy security is prompting further investments.
  • Digital and decarbonization trends are set to accelerate.
  • Global upstream spending projections continue to trend positively.

Headwinds

  • Potential economic slowdown in certain regions.
  • Investments in capex and inventory increased.
  • Lower-than-expected year-end collections.
  • Free cash flow reducing to $0.9 billion for the fourth quarter.
  • Seasonal effects in the Northern Hemisphere.

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 Q4 2022

Historical avgQ4 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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