Schlumberger Q4 Profit Surges 61%, Results Top Estimates

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Oilfield services company Schlumberger Ltd. (SLB) reported Friday a profit for the fourth quarter that surged 61 percent from last year, reflecting 13 percent higher revenues amid growth across all segments and regions. Both adjusted earnings per share and quarterly revenues topped analysts' estimates.

Schlumberger CEO Olivier Le Peuch commented, "Strengthening activity, accelerating digital sales, and outstanding free cash flow performance combined to deliver another quarter of remarkable financial results to close the year with great momentum.

For the fourth quarter, the company reported net income applicable to the company's common shareholders of $601 million or $0.42 per share, up from $374 million or $0.27 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were $0.41 per share, compared to $0.22 per share in the year-ago quarter.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 13 percent to $6.23 billion from $5.53 billion in the same quarter last year. The Street expected revenues of $5.37 billion for the quarter.

Schlumberger divested certain businesses in North America during the fourth quarter of 2020. These businesses generated revenue of $284 million during the fourth quarter of 2020. Excluding the impact of these divestitures, global fourth-quarter 2021 revenue increased 19 percent year-on-year.

North America fourth-quarter 2021 revenue, excluding the impact of these divestitures, increased 45 percent year-on-year.

On a geographical basis, international revenues grew 13 percent to $4.90 billion and North American revenues increased 10 percent to $1.28 billion from last year.

Digital & Integration division revenues grew 7 percent to $889 million, Reservoir Performance division revenues improved 3 percent to $1.29 billion, Well Construction division increased 28 percent to $2.39 billion and Production Systems division revenues were up 7 percent to $1.77 billion from last year.

On Thursday, Schlumberger's Board of Directors approved a quarterly cash dividend of $0.125 per share of outstanding common stock, payable on April 7, 2022 to stockholders of record on February 9, 2022.

"Looking ahead into 2022, the industry macro fundamentals are very favorable, due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices," Le Peuch added.

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