Summary
SLB LIMITED/NV (SLB) reported a notable revenue increase of 6% to $6.9 billion in the first quarter of 2017 compared to the same period in 2016. This growth was largely driven by the full-quarter inclusion of the Cameron acquisition, which contributed $1.2 billion in revenue. However, excluding the impact of Cameron, the company's underlying revenue saw a 13% decline year-over-year, reflecting challenging market conditions in the oil and gas sector, particularly in international and offshore segments. Despite the top-line growth, profitability faced pressure. Net income attributable to Schlumberger declined to $279 million from $501 million in the prior year, translating to a diluted EPS of $0.20 compared to $0.40. This was influenced by lower overall activity levels, pricing pressure in international markets, and specific charges related to merger and integration costs from the Cameron acquisition. The company is actively managing costs, with Research & Engineering and General & Administrative expenses decreasing as a percentage of revenue.
Financial Highlights
48 data points| Revenue | $6.89B |
| Cost of Revenue | $1.90B |
| Gross Profit | $5.00B |
| R&D Expenses | $211.00M |
| Operating Income | $757.00M |
| Interest Expense | $139.00M |
| Net Income | $279.00M |
| EPS (Basic) | $0.20 |
| EPS (Diluted) | $0.20 |
| Shares Outstanding (Basic) | 1.39B |
| Shares Outstanding (Diluted) | 1.40B |
Key Highlights
- 1Total revenue increased by 6% to $6.9 billion, primarily due to the full quarter inclusion of the Cameron acquisition.
- 2Excluding the Cameron acquisition, underlying revenue decreased by 13% year-over-year, indicating ongoing industry headwinds.
- 3Net income attributable to Schlumberger decreased to $279 million from $501 million in Q1 2016, with diluted EPS falling to $0.20 from $0.40.
- 4The company recorded $82 million in pretax merger and integration charges related to the Cameron acquisition.
- 5Operating margins across most segments (Drilling, Production, Reservoir Characterization) declined year-over-year due to reduced activity and pricing pressures.
- 6The North America land market showed signs of recovery, with increased hydraulic fracturing activity and pricing recovery in the Production Group.
- 7SLB generated $656 million in net cash from operating activities, but invested significantly in capital expenditures and acquisitions, resulting in a decrease in cash and short-term investments.