A Snapshot of Schlumberger’s 1Q15 Revenues and Earnings
An Overview of Schlumberger’s 1Q15 Earnings (Part 1 of 5)
Schlumberger’s 1Q15 performance
Schlumberger Limited (SLB) released its 1Q15 financial results on April 16. This article will review Schlumberger’s 1Q15 revenues and earnings.
The company recorded total revenues of $10.25 billion for 1Q15, down 8.8% from $11.24 billion in 1Q14. SLB’s revenues for the latest quarter decreased mostly due to a slowdown in its North American region. North America had generally been the company’s growth driver before the first quarter.
SLB in brief
Based in Houston, Schlumberger is an oilfield equipment and services company that provides technology, integrated project management, and information solutions to oil and gas exploration and production companies around the world.
1Q15 net income
Net income for the first quarter decreased sharply by ~39% to $975 million compared to the year-ago figure of $1.59 billion. Geography-wise, earnings decreased mostly in SLB’s North American operations. All of Schlumberger’s groups witnessed weaker results during the quarter, but the Production group suffered the most.
In 1Q15, the company recorded a $439-million charge mainly for workforce restructuring. SLB also saw a currency devaluation charge. Read the rest of this series to learn more about these charges and what they mean for Schlumberger.
Operating income decreased 16% to $1.99 billion in 1Q15 from $2.36 billion in 1Q14. This did not include the workforce restructuring and currency devaluation charges mentioned above.
Diluted earnings per share decreased to $0.76 from $1.21 in the first quarter of 2014.
SLB makes up 19.3% of the Market Vectors Oil Services ETF (OIH) and 7.66% of the Energy Select Sector SPDR (XLE). Halliburton (HAL) and Baker Hughes (BHI) are also components of OIH. They and most of the other major drilling services and equipment providers have not announced 1Q15 results so far.
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