Schlumberger Falls on Q3 Numbers

Schlumberger NV (NYSE:SLB) shares tumbled to begin Friday, on the release of results for the third quarter of 2020.

Worldwide revenue of $5.3 billion decreased 2% sequentially. International revenue of $4.1 billion decreased 1% sequentially. North America revenue of $1.2 billion decreased 2% sequentially

GAAP loss per share, including charges and credits of $0.22 per share, was $0.06 EPS, excluding charges and credits, was $0.16

Cash flow from operations was $479 million and free cash flow was $226 million. Board approved quarterly cash dividend of $0.125 per share

During the third quarter, Schlumberger issued $500 million of 1.400% Senior Notes due 2025
and $350 million of 2.650% Senior Notes due 2030.

On August 31, Schlumberger and Liberty Oilfield Services Inc. (Liberty) signed an agreement for the contribution to Liberty of OneStim, Schlumberger’s onshore hydraulic fracturing business in the United States and Canada, including its pressure pumping, pumpdown perforating, and Permian frac sand businesses, in exchange for a 37% equity interest in Liberty. The transaction is expected to close in the fourth quarter of 2020 and is subject to Liberty stockholder approval and other customary closing conditions.

On October 15, Schlumberger’s Board of Directors approved a quarterly cash dividend of $0.125 per share of outstanding common stock, payable on January 14, 2021 to stockholders of record on December 2.

Schlumberger CEO Olivier Le Peuch commented, "Our results in the third quarter clearly demonstrate our focus on execution, returns, and customer performance. Margins expanded sequentially while pretax segment operating income and adjusted EBITDA grew 45% and 21%, respectively, highlighting notable progress in the reset of our earnings power and further demonstrating our execution capabilities as we transition to our new organization.

"Through this cycle, we are leading technology innovation for our customers and reinventing ourselves to deliver a return above our cost of capital through the combination of capital stewardship, margin expansion, and free cash flow generation."

SLB shares went south 71 cents, or 4.3%, to $15.71.