Energy

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $53, up $1, reflects a 9.4x multiple of EV to projected ’25 EBITDA, in line with SLB’s historical average. We keep our stand-alone ’24 EPS view at $3.54 and lift ’25’s by $0.10 to $3.69. Q1 EPS of $0.75 vs. $0.63, was in line with consensus. Q1 revenues rose 13% Y/Y. SLB reiterated its ’24 guide; however, we remain wary of the int’l demand picture, given that Saudi Aramco stated in March it plans to lower capex by $40B between ’24 and ’28 after receiving notice in January ’24 to keep its productive oil capacity at 12 mb/d (vs. 13 mb/d), which could impact SLB, in our view. In April, SLB announced it plans to acquire ChampionX (CHX 36 NR) in an all-stock […]

The following is a summary of the Schlumberger Limited (SLB) Q1 2024 Earnings Call Transcript: Financial Performance: Schlumberger reported a strong start to Q1 2024 with 13% year-on-year revenue growth, generating revenues of $8.7 billion. EBITDA experienced mid-teens growth, with adjusted EBITDA margins expanding for the 13th consecutive quarter. Earnings per share stood at $0.75, seeing a $0.12 increase from Q1 2023. Despite generating $327 million of cash flow from operations, free cash flow was reported at negative $222 million due to annual employee incentive payouts and lower cash collections. The company experienced a 6% decline in North American revenue due to weaker gas prices and market consolidation, but maintained double-digit growth in international revenue. Business Progress: Schlumberger experienced growth in 21 of their 25 international GeoUnits, with particular improvements seen in the Middle East, Asia, and North Africa. Despite a slow start, digital sales grew in double-digits in Q1,