Earnings Briefing - Schlumberger

LONDON, May 7, 2015 /PRNewswire/ --

Editor Note: For more information about this release, please scroll to bottom.

Investor-Edge.com has issued free earnings review on Schlumberger Ltd (NYSE: SLB). On April 16, 2015, the company reported its Q1 FY15 financial results (period ended March 31, 2015). Click on http://get.Investor-Edge.com/pdf/?c=Schlumberger&d=07-May-2015&s=SLB to read our free earnings review on Schlumberger Limited (Schlumberger). During Q1 FY15, the company's revenue was $10.25 billion and its pretax operating income came in at $1.99 billion. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Schlumberger&d=07-May-2015&s=SLB

Earnings Overview 

During Q1 FY15, Schlumberger's revenue fell 9% Y-o-Y from $11.24 billion in Q1 FY14. The company's reported quarter revenue missed Bloomberg analysts' forecast of $10.42 billion. In Q1 FY15, Schlumberger's revenue from North America areas decreased 13% to $3.22 billion from $3.68 billion in Q1 FY14. Further, the company's International revenues were $6.89 billion in Q1 FY15, down 8% from $7.48 billion in Q1 FY14.

CEO of Schlumberger, Paal Kibsgaard, said that despite the severity of the sequential revenue decline, the company has been able to minimize the impact on its margins through prompt and proactive cost management as well as through acceleration of the company's transformation program across product lines and GeoMarkets. Free research on SLB can be downloaded at:

http://get.Investor-Edge.com/pdf/?c=Schlumberger&d=07-May-2015&s=SLB

For Q1 FY15, Schlumberger's pretax operating income declined 16% Y-o-Y from $2.37 billion in Q1 FY14. The company's pretax operating margin fell 162 basis points to 19.4% in Q1 FY15 from 21.1% in Q1 FY14. For the reported quarter, net income attributable to Schlumberger stood at $975 million, or $0.76 per diluted share, compared with $1.59 billion, or $1.21 per diluted share, in Q1 FY14. Bloomberg's analysts had expected net income attributable to Schlumberger of $1.15 billion, or $0.89 per diluted share, in Q1 FY15.

Schlumberger repurchased 8.7 million shares of its common stock at an average price of $82.98 per share for a total purchase price of $719 million, during Q1 FY15.

On January 20, 2015, Schlumberger agreed to acquire a minority ownership of approximately 46% in Eurasia Drilling Company Limited. The total cost of acquiring this minority interest, including an option which will allow Schlumberger at its election, to purchase the remaining shares during a two-year period commencing on the third anniversary of the closing of the transaction, is approximately $1.7 billion. Sign up and read the free analyst's notes on SLB at:

http://get.Investor-Edge.com/pdf/?c=Schlumberger&d=07-May-2015&s=SLB

Considering the macro environment, Mr. Kibsgaard said that the global economy continues its steady recovery, and oil demand is still expected to increase by 1 million bbl/d (barrels per day) in FY15. However, the significant reductions in Exploration and Production spending are starting to impact supply in both North America and internationally, and supply is expected to tighten further in H2 FY15, he further stated. Mr. Kibsgaard also said that the company expects 2015 E&P spending to fall around 15% internationally, which will create challenges in terms of both activity and pricing levels, but these challenges will be considerably less than the headwinds it is facing in North America.

The company expects to see overall activity reductions in Latin America, Europe, Sub-Saharan Africa, and in Asia, while in Russia, Schlumberger believes that conventional land activity in Western Siberia will continue to be resilient, but that the revenue contribution from the region will remain subdued until the currency effects have normalized, Mr. Kibsgaard added.

He also stated that the company remains focused on what it can control, including its cost and resource base, the deployment of its technology and expertise, and the quality and integrity of the products and services it provides, amid a rapid decline in activity. In this environment, Schlumberger remains confident in its ability to grow market share, deliver superior performance in earnings per share compared to industry peers, and reduce working capital and capex intensity, he reassured. Visit Investor-Edge and access the research on SLB at:

http://get.Investor-Edge.com/pdf/?c=Schlumberger&d=07-May-2015&s=SLB

Stock Performance 

On the day following the earnings release, April 17, 2015, Schlumberger's stock gained 1.06% to end the session at $92.86. Since then, the stock has witnessed a mixed momentum. On the last close, Wednesday, May 06, 2015, the company's shares finished at $92.27, up 0.25%, after vacillating between $91.55 and $93.57. A total of 6.67 million shares were traded which was below their three months average volume of 8.12 million shares. Further, the stock has advanced 8.03% on YTD basis.

Sneak Peek to Corporate Insider Trading  

In the last one month, there were 16 insider transactions made by 7 individuals. Between April 20, 2015 and April 22, 2015, a total of 16,400 shares were bought at an average price of $70.86 per share and for a total value of $1.16 million. During the same period, a total of 37,656 shares, worth $3.51 million, were disposed at an average price of $93.11 per share. The following are some of the abovementioned transactions at Schlumberger: President of Reservoir Characterization Group, Aaron Gatt Floridia, purchased 11,400 shares at an average price of $77.11 per share and disposed an equal number of shares at an average price $93.65 per share; President of Production Group, Sherif Foda, bought 5,000 shares at an average price of $56.61 per share and sold an equal number of shares at an average price of $93.43 per share. Complimentary in-depth research on SLB is available at:

http://get.Investor-Edge.com/pdf/?c=Schlumberger&d=07-May-2015&s=SLB

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