Schlumberger Announces Third-Quarter 2020 Results

 • Worldwide revenue of $5.3 billion decreased 2% sequentially

• International revenue of $4.1 billion decreased 1% sequentially

• North America revenue of $1.2 billion decreased 2% sequentially

• GAAP loss per share, including charges and credits of $0.22 per share, was $0.06

• EPS, excluding charges and credits, was $0.16

• Cash flow from operations was $479 million and free cash flow was $226 million

• Board approved quarterly cash dividend of $0.125 per share

HOUSTON-Wednesday 21 October 2020 [ AETOS Wire ]

(BUSINESS WIRE) -- Schlumberger Limited (NYSE: SLB) today reported results for the third quarter of 2020.

Third-Quarter Results

 

(Stated in millions, except per share amounts)

 

Three Months Ended

 

Change

 

Sept. 30, 2020

 

Jun. 30, 2020

 

Sept. 30, 2019

 

Sequential

 

Year-on-year

Revenue

 

$5,258

 

$5,356

 

$8,541

 

-2%

 

 

-38%

Income (loss) before taxes - GAAP basis

 

$(54)

 

$(3,627)

 

$(11,971)

 

n/m

 

 

n/m

Adjusted EBITDA*

 

$1,018

 

$838

 

$1,773

 

21%

 

 

-43%

Adjusted EBITDA margin*

 

19.4%

 

15.6%

 

20.8%

 

371 bps

 

 

-140 bps

Pretax segment operating income*

 

$575

 

$396

 

$1,096

 

45%

 

 

-48%

Pretax segment operating margin*

 

10.9%

 

7.4%

 

12.8%

 

355 bps

 

 

-190 bps

Net income (loss) - GAAP basis

 

$(82)

 

$(3,434)

 

$(11,383)

 

n/m

 

 

n/m

Net income, excluding charges & credits*

 

$228

 

$69

 

$596

 

231%

 

 

-62%

Diluted EPS (loss per share) - GAAP basis

 

$(0.06)

 

$(2.47)

 

$(8.22)

 

n/m

 

 

n/m

Diluted EPS, excluding charges & credits*

 

$0.16

 

$0.05

 

$0.43

 

220%

 

 

-63%

 

 

 

 

 

North America revenue

 

$1,157

 

$1,183

 

$2,850

 

-2%

 

 

-59%

International revenue

 

$4,091

 

$4,138

 

$5,629

 

-1%

 

 

-27%

 

 

*These are non-GAAP financial measures. See sections titled "Charges & Credits", "Segments", and "Supplemental Information" for details.

n/m = not meaningful

Schlumberger CEO Olivier Le Peuch commented, “Our results in the third quarter clearly demonstrate our focus on execution, returns, and customer performance. Margins expanded sequentially while pretax segment operating income and adjusted EBITDA grew 45% and 21%, respectively, highlighting notable progress in the reset of our earnings power and further demonstrating our execution capabilities as we transition to our new organization.

“Through this cycle, we are leading technology innovation for our customers and reinventing ourselves to deliver a return above our cost of capital through the combination of capital stewardship, margin expansion, and free cash flow generation.

“In North America, we have exhibited capital discipline, and are high-grading and rationalizing our portfolio, with a focus on reduced volatility of earnings and less capital-intensive businesses as demonstrated by two key milestones we achieved during the quarter. The first is the agreement to combine our OneStim® pressure pumping business with Liberty Oilfield Services Inc. The second is an agreement to divest our low-flow artificial lift business in a cash transaction.

“Internationally, our fit-for-basin approach continues to extend our leadership position built on the largest and most diverse footprint in the industry. Despite the rig count decline during the quarter, we have experienced significant new technology uptake, achieved new performance benchmarks for our customers, and captured higher performance incentives on multiple projects. In addition, our international business continues to generate resilient, accretive margins and significant free cash flow. Upon the close of the two North America transactions, we expect our international revenue to represent more than 80% of consolidated revenue, up from an average of approximately 65% over the past decade. The combination of our fit-for-basin strategy, digital technology innovation, and scale puts us in the best position to leverage the anticipated shift of spending growth toward the international market.

“Third-quarter revenue declined 2% sequentially, as North America revenue was 2% lower and international revenue declined 1%. In North America land, increased completions activity on drilled but uncompleted (DUC) wells was offset by reduced drilling in US land. North America offshore was affected by reduced rig activity, lower multiclient seismic license sales, and hurricane disruption.

“International revenue was driven by higher activity in Latin America, boosted by the resumption of production in our Asset Performance Solutions (APS) projects in Ecuador and increased seasonal summer activity in the North Sea and Russia. These increases were offset by the effects of rig count declines and extended COVID-19 disruptions in Africa and in the Middle East & Asia.

Third-Quarter Revenue by Segment

 

(Stated in millions)

 

 

Three Months Ended

 

Change

 

 

Sept. 30, 2020

 

Jun. 30, 2020

 

Sept. 30, 2019

 

Sequential

 

Year-on-year

 

Reservoir Characterization

 

$1,010

 

$1,052

 

$1,651

 

-4%

 

 

-39%

 

Drilling

 

1,519

 

1,731

 

2,469

 

-12%

 

 

-38%

 

Production

 

1,801

 

1,615

 

3,153

 

12%

 

 

-43%

 

Cameron

 

965

 

1,015

 

1,363

 

-5%

 

 

-29%

 

Other

 

(37)

 

(57)

 

(95)

 

n/m

 

 

n/m

 

 

$5,258

 

$5,356

 

$8,541

 

-2%

 

 

-38%

View source version on businesswire.com: https://www.businesswire.com/news/home/20201016005317/en/

Contacts

For more information, contact

Ndubuisi Maduemezia – Vice President of Investor Relations, Schlumberger Limited

Joy V. Domingo – Director of Investor Relations, Schlumberger Limited

Office +1 (713) 375-3535

investor-relations@slb.com

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