Summary
SLB Limited/NV (SLB) reported its third quarter and nine-month results for the period ending September 29, 2019. The company experienced a significant net loss of $11.38 billion for the third quarter, primarily driven by a substantial goodwill impairment charge of $8.83 billion. This impairment was triggered by deteriorating market conditions, a decline in Schlumberger's market capitalization, and broader industry challenges, particularly in North America. Despite the substantial one-time charges, total revenue for the third quarter remained relatively flat year-over-year at $8.54 billion, indicating resilience in its core operations. International revenue showed growth, offsetting a decline in North America due to customer budget constraints and reduced activity. The company also highlighted strategic debt management activities, including debt issuances and repurchases, and maintained a solid liquidity position with significant cash and available credit facilities.
Financial Highlights
48 data points| Revenue | $8.54B |
| R&D Expenses | $176.00M |
| Operating Income | $1.10B |
| Interest Expense | $160.00M |
| Net Income | -$11.38B |
| EPS (Basic) | $-8.22 |
| EPS (Diluted) | $-8.22 |
| Shares Outstanding (Basic) | 1.39B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Recorded a substantial goodwill impairment charge of $8.83 billion in Q3 2019, leading to a reported net loss of $11.38 billion for the quarter. This impairment reflects significant deterioration in market conditions.
- 2Total revenue for Q3 2019 was $8.54 billion, largely flat compared to $8.50 billion in Q3 2018, demonstrating revenue stability despite market headwinds.
- 3North America revenue declined 11% year-over-year in Q3 2019, impacted by customer budget constraints and reduced drilling and frac activity.
- 4International revenue increased 8% year-over-year in Q3 2019, driven by increased investment levels, offsetting the North American decline.
- 5The company executed several debt management activities, including issuing new notes and repurchasing existing ones, to optimize its capital structure.
- 6SLB reported cash flow from operations of $3.18 billion for the nine months ended September 30, 2019, and free cash flow of $1.24 billion.
- 7The company maintained a strong liquidity position, with $2.3 billion in cash and short-term investments and $4.1 billion in available and unused credit facilities as of September 30, 2019.