Earnings Results: SLB’s stock drops after revenue comes up short, as reservoir performance missed

by | Oct 20, 2023 | Stock Market

Shares of SLB, formerly known as Schlumberger Ltd., dropped Friday after the oil and gas services company reported third-quarter profit that topped expectations but revenue that came up shy. The stock
slumped 2% in premarket trading. Prior to the release of results, the stock was hovering just below the five-year closing high of $62.10, reached on Sept. 12. The stock’s decline comes even as crude oil futures
rally 1.4%.

Net income rose to $1.12 billion, or 78 cents a share, from $907 million, or 63 cents a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of 78 was a penny above the FactSet consensus of 77 cents. Revenue grew 11.1% to $8.31 billion, just below the FactSet consensus of $8.32 billion. International revenue increased 12.5% to $6.61 billion and North America revenue was up 6.5% to $1.64 billion. Among the company’s largest business segments, well construction revenue rose 11% to $3.43 billion to match the FactSet consensus and production systems revenue increased 10% to $2.37 billion to top expectations of $2.36 billion, while reservoir performance revenue climbed 15% to $1.68 billion but missed expectations of $1.71 billion. “The oil and gas industry continues to benefit from a multiyear growth cycle that has shifted to the international and offshore marke …

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