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SLB

Schlumberger NYSE:SLB Stock Report

Last Price

US$37.13

Market Cap

US$52.5b

7D

0.7%

1Y

40.4%

Updated

18 Aug, 2022

Data

Company Financials +
SLB fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance5/6
Financial Health3/6
Dividends3/6

SLB Stock Overview

Schlumberger Limited provides technology for the energy industry worldwide.

Schlumberger Limited Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Schlumberger
Historical stock prices
Current Share PriceUS$37.13
52 Week HighUS$49.83
52 Week LowUS$25.90
Beta1.87
1 Month Change8.50%
3 Month Change-9.70%
1 Year Change40.43%
3 Year Change10.15%
5 Year Change-40.95%
Change since IPO201.56%

Recent News & Updates

Aug 08
We Ran A Stock Scan For Earnings Growth And Schlumberger (NYSE:SLB) Passed With Ease

We Ran A Stock Scan For Earnings Growth And Schlumberger (NYSE:SLB) Passed With Ease

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Aug 03

Schlumberger Benefits From Global Operations

Schlumberger’s market capitalization is $51.9 billion. Its dividend yield is 1.9%. The company considers its phenomenal Q2 '22 results—including quarter-over-quarter strongest revenue growth since 2010—an upward inflection that will continue due to the global need for non-Russian oil and gas supply. Of SLB's 2Q22 revenue, 77% was from international operations; the remaining 23% from North America. Schlumberger Limited (SLB), the largest oilfield service firm, nonetheless was as challenged as all other OFS companies during the 2019-2021 downturn. However, both demand increases and supply deficits -- coupled with a new emphasis on energy security-of-supply risk -- have been setting the stage for Schlumberger to profit not just in 2Q22, as it did, but for several quarters forward also. The company's global diversification stands it in good stead, with national and international companies seeking its expertise to line up new reserves outside of Russia. Examples of drilling projects with which Schlumberger is involved include some in the Middle East, the North Sea (Norway), Africa (Namibia) and offshore South America, particularly Brazil and Guyana. Russia-where it has now suspended operations-accounted for only 5% of the company's revenues. Moreover, the need is double-barreled, e.g. not just oil, but also natural gas. Natural gas was already gaining ground as a lower-carbon transition fuel, but the near-total loss of natural gas into Europe from Russia has exposed just how necessary that fuel is for heat, for electricity, and for manufacturing in the EU and the UK. So, there is a quickened rush to meet the desperate demand. The company achieved stellar growth in 2Q22 and expects an equally strong remainder of 2022 and 2023. Having cut its dividend during the downturn, it has begun raising it and expects to raise it further. Share buybacks are also an eventual possibility. I recommend Schlumberger's stock to investors interested in oilfield services growth, particularly internationally. Schlumberger Second Quarter 2022 Results and Guidance Schlumberger's second-quarter 2022 revenues derived 77% from international operations and 23% from North America. In the second quarter, the company earned: $6.7 billion of revenues, the largest sequential increase--14%--and a 20% year-over-year increase; $959 million of net income ($0.67/share); adjusted EBITDA of $1.5 billion at a 22.6% margin; pretax segment operating income of $1.16 billion at a 17.1% margin. Schlumberger is organized by four operating divisions and four geographical regions. Operating divisions are 1) digital & integration, 2) reservoir performance, 3) well construction, and 4) production systems. The company's second-quarter pretax operating income by division, with margin, is shown below. slb.com and Starks Energy Economics, LLC The importance of the European and the Middle East/Asian operations are illustrated in the graph of 2Q22 revenue by region. slb.com and Starks Energy Economics, LLC Discussing growth ahead, in the company's 2Q22 conference call CEO Olivier Le Peuch said, The second quarter market a significant inflection point for Schlumberger with a strong acceleration of revenue and earnings growth... Growth was broad-based, driven by an increase in activity internationally, in North American, and across all Divisions. The company has $1.5 billion in senior notes due in 2023, and the company expects further dividend increases and, eventually, share repurchases. The company's Russian exposure was about 5% of total worldwide revenue. It has suspended new investment and technology deployment into Russia. Expected full-year 2022 revenue guidance has been increased to at least $27 billion. According to Le Peuch, I think the quarters to come will be definitely quarters to be replenishing and securing enough spare capacity to avoid the exposure, the overexposure to risk on the energy supply. I think we are living through a supply-led unbalance. I think it's quite unique and it will take time before it recovers towards a demand supply balance. Macro and Oil and Gas Prices For European natural gas, the 2021 shortage was made much worse after reactions to the February 2022 Russian invasion of Ukraine. While Russia appears to be selling its oil (10% of world supply) and coal to non-European buyers, it has simply throttled back its natural gas exports to Europe, which had accounted 40% of Europe's consumption. The EU and the UK now desperately need natural gas. In the US, the Biden administration's energy policy is an anti-hydrocarbon "keep it in the ground" series of directives, which has limited supply and driven prices higher. The Biden administration has called on Saudi Arabia (but not US producers!) to increase production, particularly of oil. Incentivized by higher prices, US oil companies have stepped up drilling on non-federal lands from the pandemic lows. National oil companies, like Saudi Aramco, are also drilling more-a benefit for Schlumberger as the largest international oilfield service company. And international oil companies, like Chevron (CVX) and Exxon Mobil (XOM) have intensified acquisitions and drilling in the US and as well as drilling abroad. Notably, in its 2Q22 report, Schlumberger mentions increased work in Guyana (it already has facilities there). ExxonMobil has announced it will drill 60 exploration wells offshore Guyana in the next six years, including 37 in the Stabroek block. The August 2, 2022, Brent NYMEX oil futures price (for October 2022 delivery) was $99.74/barrel. On August 2, 2022, for September delivery: the West Texas Intermediate ((WTI)) oil price was $93.81/barrel, the Henry Hub (Louisiana) natural gas price was $7.67/MMBTU, and the Dutch Title Transfer Facility ((TTF)) liquefied natural gas price was (an astonishing) $60.69/MMBTU. WTI Crude Oil Spot Price data by YCharts Henry Hub Natural Gas Spot Price data by YCharts While prices are indeed down from the peaks in early July, the 5-95 confidence interval for future oil prices remains quite wide. Energy Information Administration Competitors Schlumberger's head office is in Houston, Texas; however, it is administratively headquartered in Paris, France. Tellingly, its 2Q conference call was scheduled on Greenwich Mean Time. Schlumberger's largest oilfield service competitors are Baker Hughes (BKR), Halliburton (HAL), and NOV Inc (NOV). As a leading oilfield services provider to national oil companies (NOCs), it also competes with Middle East/North Africa oilfield service company National Energy Services Reunited (NESR). Liberty Oilfield Services (LBRT), of whom Schlumberger now owns 12% (down from 37% initially in 2020), competes with several other US onshore fracking and pumping service companies. Governance Institutional Shareholder Services ((ISS)) ranks Schlumberger's overall governance on July 31, 2022, as an excellent 1, with sub-scores of audit (1), board (5), shareholder rights (4), and compensation (1). On the ISS scale, 1 represents lower governance risk and 10 represents higher governance risk. Schlumberger's ESG ratings from Sustainalytics during May 2022 were "medium" with a total risk score of 24 (41st percentile). Component parts are environmental risk 8.4, social 9.4, and governance 6.5. Controversy level is 1 (low) on a scale of 0-5, with 5 as the worst. Shorted shares were 1.8% of floated shares on July 15, 2022, and insiders own a tiny fraction (0.15%) of the outstanding stock. At 1.94, Schlumberger's beta is quite high given the company's large size: its stock moves directionally with the overall market but with far more volatility. However, this reflects the large supply and demand uncertainties in the oil services sector during the past four years. On March 30, 2022, much of Schlumberger's stock was held by institutions, some of which represents index fund investments that match the overall market. The six largest institutional holders were Vanguard (8.6%), BlackRock (7.75%), State Street (6.5%), Norges Bank (2.2%), Dodge & Cox (2.2%), and Amundi (2.1%). Vanguard, Blackrock, State Street, and Amundi are signatories to the Glasgow Financial Alliance for Net Zero, a group that, as of May 31, 2022, manages $61.3 trillion in assets worldwide and which (despite less energy supply due to reduced Russian exports to Europe) limits hydrocarbon investment via its commitment to achieve net zero alignment by 2050 or sooner. slb.com SLB Financials and Stock Highlights At an August 2, 2022, closing price of $36.69/share, Schlumberger's market capitalization was $51.9 billion. The 52-week price range is $25.90-$49.83 per share, so the closing price is 74% of the one-year high. Trailing twelve-months' ((TTM)) earnings per share ((EPS)) is $1.83 for a current price/earnings ratio of 20. The average of analysts' estimates for 2022 and 2023 EPS is $1.98 and $2.72 respectively, giving a forward price/earnings ratio range of 13.5 to 18.5.

Jul 26
Schlumberger's (NYSE:SLB) Dividend Will Be Increased To $0.175

Schlumberger's (NYSE:SLB) Dividend Will Be Increased To $0.175

Schlumberger Limited's ( NYSE:SLB ) dividend will be increasing from last year's payment of the same period to $0.175...

Jul 21

Will rising oil prices push Schlumberger's Q2 earnings higher and further support FY22 outlook?

Oilfield service provider, Schlumberger (NYSE:SLB) is scheduled to announce Q2 earnings results on Friday, July 22nd, before market open. The consensus EPS Estimate is $0.40 (+33.3% Y/Y) and the consensus Revenue Estimate is $6.28B (+11.5% Y/Y) amid rising oil prices and global equipment shortages persisting thereby sales moving higher to pre-pandemic levels while profit margins displaying a healthy trend. Strong results are driven by strong drilling activities in North America, Latin America and the Middle East. CEO Olivier Le Peuch believes global demand-led capital spending will drive an exceptional multi-year growth cycle. Over the last 2 years, SLB has beaten EPS estimates 100% of the time and has beaten revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 7 upward revisions and 9 downward. Revenue estimates have seen 8 upward revisions and 6 downward. The company plans to boost spending by 18% to $2B in 2022, targeting North American oil explorers who should dominate activity in the first half of the year, followed by international growth in the final six months. With an economic recession fear hovering around global conditions, a drop in energy demand is seen likely and also with high exposure to Russia the company is at high risk level; stock has lost 14.6% in past 1-month trading session. Of the 29 Wall Street Analysts covering the stock, 16 have assigned a Strong Buy while 10 rate it a Buy rating on the stock. Of the 6 Seeking Alpha Authors covering the stock in past 30 days, 4 have rated it a Buy; SA Contributor Gen Alpha recently said, "Schlumberger Is A Bargain Hunter's Dream Stock, Here's Why". Peer companies, Baker Hughes missed expectations for Q2 earnings and revenues as oil price surge benefit was outweighed by component shortages, supply chain inflation and the suspension of its Russian operation. Also, Halliburton posted biggest quarterly profit in nearly four years; revenues rose during the quarter while net income dropped.

Shareholder Returns

SLBUS Energy ServicesUS Market
7D0.7%0.7%1.1%
1Y40.4%32.0%-9.0%

Return vs Industry: SLB exceeded the US Energy Services industry which returned 32% over the past year.

Return vs Market: SLB exceeded the US Market which returned -9% over the past year.

Price Volatility

Is SLB's price volatile compared to industry and market?
SLB volatility
SLB Average Weekly Movement7.3%
Energy Services Industry Average Movement9.5%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

Stable Share Price: SLB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SLB's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192692,000Olivier Le Peuchhttps://www.slb.com

Schlumberger Limited provides technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. It offers software, information management, and IT infrastructure services; consulting services for reservoir characterization, field development planning, and production enhancement; petro technical data services and training solutions; reservoir interpretation and data processing services; asset performance solutions; open and cased-hole services; exploration and production pressure and flow-rate measurement services; pressure pumping, well stimulation, and coiled tubing equipment for downhole mechanical well intervention, reservoir monitoring, and downhole data acquisition; and integrated production systems.

Schlumberger Limited Fundamentals Summary

How do Schlumberger's earnings and revenue compare to its market cap?
SLB fundamental statistics
Market CapUS$52.52b
Earnings (TTM)US$2.62b
Revenue (TTM)US$24.81b

20.0x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLB income statement (TTM)
RevenueUS$24.81b
Cost of RevenueUS$20.58b
Gross ProfitUS$4.23b
Other ExpensesUS$1.61b
EarningsUS$2.62b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.85
Gross Margin17.05%
Net Profit Margin10.56%
Debt/Equity Ratio83.3%

How did SLB perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

30%

Payout Ratio

Does SLB pay a reliable dividends?

See SLB dividend history and benchmarks
When do you need to buy SLB by to receive an upcoming dividend?
Schlumberger dividend dates
Ex Dividend DateSep 06 2022
Dividend Pay DateOct 13 2022
Days until Ex dividend18 days
Days until Dividend pay date55 days

Does SLB pay a reliable dividends?

See SLB dividend history and benchmarks