Have Schlumberger’s Acquisitions Paid Off?
Schlumberger reported mixed recent quarterly results Friday morning, and shares saw a gain in premarket trading.
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Schlumberger Ltd. (NYSE: SLB | SLB Price Prediction) reported its most recent quarterly results on Friday morning. The oilfield services firm said that it had $0.36 in earnings per share (EPS) and $8.18 billion in revenue, which compares with consensus estimates calling for $0.36 in EPS on revenue of $8.03 billion. The same period of last year reportedly EPS of had $0.48and $8.18 billion in revenue.
Overall, fourth-quarter revenue declined 4% sequentially driven by lower activity and pricing for most production- and Cameron-related businesses in North America. Lower revenue from OneSubsea also drove the decline, but management has booked more than $600 million in new project orders during the quarter.
During this quarter, Shearwater GeoServices completed the purchase of the WesternGeco marine seismic acquisition assets and operations. Schlumberger received a cash consideration of $600 million plus a 15% post-closing equity interest in Shearwater GeoServices.
The board of directors approved a quarterly cash dividend of $0.50 per share of outstanding common stock, payable on April 12, 2019, to stockholders of record on February 13, 2019.
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Paal Kibsgaard, board chair and chief executive, commented:
Full-year 2018 revenue of $32.8 billion increased 8% year-on-year and grew for the second successive year. Performance was driven by North America where revenue of $12.0 billion increased 26% due to the results of our OneStim business, which grew by 41%. Full-year international revenue of $20.4 billion was essentially flat compared with 2017. However, excluding Cameron, international revenue for the second half of 2018 showed year-over-year growth of 3%, marking the beginning of a positive activity trend after three consecutive years of declining revenues.
Shares of Schlumberger closed Thursday at $41.37, in a 52-week range of $34.99 to $80.35. The stock has a consensus analyst price target of $56.68. Following the announcement, the stock was up about 3% at $42.60 in early trading indications Friday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
