A Snapshot of Schlumberger’s 2Q15 Revenues and Earnings
Schlumberger’s 2Q15 Earnings Reflect Industry Slowdown
Schlumberger’s 2Q15 revenues
Schlumberger (SLB) released its 2Q15 financial results on July 16. We’ll discuss its latest quarterly results in this series. First up is a snapshot of Schlumberger’s 2Q15 revenues and earnings. The company recorded total revenues of $9.01 billion for 2Q15, down 25.3% from $12.05 billion recorded in 2Q14. SLB’s revenues for the latest quarter decreased mostly due to slowdown in its North American region. North America had generally been the company’s growth driver until 4Q14.
In 2Q15, Schlumberger’s operating income decreased 35% to $1.70 billion from $2.62 billion recorded in 2Q14.
Schlumberger’s 2Q15 net income
Net income for 2Q15 decreased sharply by ~29% to $1.12 billion compared to the year-ago figure of $1.59 billion. Geography-wise, earnings decreased mostly in its North American operations. All of Schlumberger’s product groups witnessed weaker results in 2Q15. The production group suffered the most.
Compared to 1Q15, Schlumberger’s latest quarter earnings look better. In 1Q15, the company recorded $975 million in net income, which was 13% lower than in 2Q15. This was primarily due to a $475 million restructuring charge, which lowered 1Q15 earnings. 2Q15 net income margin also improved to 12.5% from 9.5% a quarter ago.
Diluted earnings per share decreased to $0.88 from $1.21 recorded in the second quarter of 2014. Schlumberger makes up 20.6% of the Market Vectors Oil Services ETF (OIH) and 7.49% of the Energy Select Sector SPDR (XLE). National Oilwell Varco (NOV) and Weatherford International (WFT), two other major drilling services and equipment providers, are expected to announce 2Q15 results soon. NOV and WFT together account for 9% of OIH.
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