10-QPeriod: Q1 FY2019

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2019

Filed April 24, 2019For Securities:SLB

Summary

SLB LIMITED/NV (SLB) reported its first-quarter 2019 financial results, indicating a slight decrease in total revenue to $7.879 billion from $7.829 billion in the prior year period. Net income attributable to Schlumberger saw a notable decline, falling to $421 million from $525 million in the first quarter of 2018. Consequently, diluted earnings per share decreased to $0.30 from $0.38. The company experienced a mixed performance across its segments, with North America revenue declining year-over-year while international business showed strength. Management commentary suggests a cautious outlook for North America land investments, anticipating a decline, while forecasting growth in international markets. The company's balance sheet remains robust, with significant liquidity and a manageable net debt position.

Financial Highlights

48 data points
Beta

Revenue

$7.88B

Net Income

$421.00M

5.3% Net Margin

EPS (Diluted)

$0.30

Total Assets

$70.32B

Cash & Equivalents

$1.23B

Free Cash Flow

-$87.00M

Financial Statements
Beta
Revenue$7.88B
R&D Expenses$173.00M
Operating Income$908.00M
Interest Expense$147.00M
Net Income$421.00M
EPS (Basic)$0.30
EPS (Diluted)$0.30
Shares Outstanding (Basic)1.39B
Shares Outstanding (Diluted)1.40B

Key Highlights

  • 1Total revenue for Q1 2019 was $7.879 billion, a slight increase of 0.6% compared to $7.829 billion in Q1 2018.
  • 2Net income attributable to Schlumberger decreased by 19.8% to $421 million in Q1 2019, down from $525 million in Q1 2018.
  • 3Diluted earnings per share (EPS) declined to $0.30 in Q1 2019 from $0.38 in Q1 2018.
  • 4North America revenue decreased by 3.3% year-over-year, while international revenue increased.
  • 5The company is managing its debt, with long-term debt increasing to $16.449 billion at March 31, 2019, from $14.644 billion at December 31, 2018.
  • 6Schlumberger repurchased $98 million worth of its common stock in Q1 2019.
  • 7The effective tax rate decreased to 15.5% in Q1 2019 from 17.6% in Q1 2018.

Frequently Asked Questions

In the first quarter of 2019, SLB reported total revenue of $7.879 billion, a slight increase from $7.829 billion in the same period of 2018. However, net income attributable to Schlumberger decreased to $421 million from $525 million in the prior year. This resulted in a decrease in diluted earnings per share to $0.30 from $0.38.

North America revenue saw a year-over-year decrease of 3.3% to $2.738 billion. In contrast, international markets showed strength, with revenue in Latin America increasing and combined Europe/CIS/Africa and Middle East/Asia segments remaining relatively stable or showing growth, leading to overall international revenue growth.

Schlumberger anticipates a steady improvement in oil market sentiment throughout 2019, driven by demand, production cuts, and slowing North American shale growth. The company expects increased E&P investments internationally (estimated 7-8% growth) while predicting a decline in North America land E&P investments (estimated 10% decrease) due to higher capital costs and investor focus on free cash flow.

As of March 31, 2019, SLB had $2.2 billion in cash and short-term investments and $3.8 billion available under committed credit facilities, indicating strong liquidity. Long-term debt increased to $16.449 billion. The company also continued its share repurchase program, buying back $98 million of stock in the quarter.