|Bid||36.51 x 46000|
|Ask||38.90 x 800|
|Day's Range||37.42 - 38.39|
|52 Week Range||36.50 - 75.63|
|Beta (5Y Monthly)||1.91|
|PE Ratio (TTM)||16.85|
|Earnings Date||Jan 28, 2020|
|Forward Dividend & Yield||1.00 (2.59%)|
|Ex-Dividend Date||Jan 22, 2020|
|1y Target Est||43.69|
Two oil-and-gas companies have cut their payouts in the past month. A new report attempts to predict which others could do the same in the months ahead.
Core Laboratories (CLB) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The Board of Supervisory Directors of Core Laboratories N.V. (NYSE: "CLB US" and Euronext Amsterdam Exchange: "CLB NA") has announced a cash dividend of $0.25 per share of common stock payable in the first quarter of 2020. This first quarter dividend would mean a total payout of $1.00 per share of common stock, if maintained for the entire year. The quarterly $0.25 per share cash dividend will be payable on Friday, 14 February 2020, to shareholders of record on Friday, 24 January 2020. Dutch withholding tax will be deducted from the dividend at a rate of 15%.
Core Laboratories told you what you needed to know -- maybe all you needed to know -- when it sliced its dividend from $0.55 to $0.25 as the year began. Core is a thoughtful company that bases its decisions on traditional return on equity not on a "drill baby drill" hypotheses and it wouldn't be cutting that dividend, which has been both sacrosanct and a chief reason to own the stock, if it weren't for longer-term concerns that the oil business itself just isn't coming back the way it's supposed to when oil prices go higher. Core only cut its estimates for the fourth quarter (the one just concluded) by about seven cents, guiding down from 44 to 45 cents to 37 to 38 cents, hardly a decline meriting taking such a hatchet to the dividend... unless the company, long one of the remaining bulls on oil, has come to the conclusion that oil business has fundamentally changed.
Supermajor ExxonMobil (XOM) issued an update on its upcoming fourth-quarter earnings. Meanwhile, Core Labs (CLB) slashed its dividend by 55% and lowered fourth-quarter guidance.
Core Labs (CLB) initiates a preliminary view for the first quarter of 2020 wherein it expects its quarterly revenues within $159-$164 million and earnings per share in the 39-41 cents range.
(Bloomberg Opinion) -- “When does it end?” is a perfectly reasonable question for New Year’s Eve. And in the case of anyone still holding onto oilfield services stocks, it is more than rhetorical.Core Laboratories NV, which offers services to enhance output from oilfields, dropped the ball early on Thursday evening, or New Year’s Eve Eve if you will. It cut guidance for the quarter just about to end, issued underwhelming guidance for the quarter about to begin and, to cap it off, slashed its dividend by more than half. The latter was declared “sacrosanct” by management only two months ago — which, in hindsight, is one of those overwrought words that should set alarm bells ringing. Throw in Tuesday’s pre-drinking trading volumes, and the stock looks set to see out 2019 with a bang (not the good kind).The ostensible reason for the sudden about-face is sluggish activity in international markets, which were hoped to offset the drag from the slowdown in U.S. fracking. The underlying reason is one that blends the oil business with New Year’s Eve seamlessly: the triumph of hope over experience.It is telling that Core Labs last raised its dividend in the second quarter of 2016, just after oil prices had bottomed out below $30 a barrel. At the time, the company anticipated a “V-shaped” recovery in commodity markets. But the seams were splitting. Shareholder equity had already dipped further into deficit in the first quarter of that year as dividends outpaced earnings. And a month after raising the dividend, Core Labs sold another $175 million of stock to help pay down its revolver.In short, the company was paying a pre-crash dividend on post-crash cash flows in the hope that the inevitable swing up in oil prices would make it all balance out. Core Labs was certainly not alone in this thinking. But the oil market’s “V” turned out to be more a series of w’s.Consequently, net debt to Ebitda has almost doubled since the middle of 2018, hitting 2.8 times at the end of September. By then, analysts were speculating about whether Core Labs would have to cut its dividend, just as they were back in early 2016. Yet analysts also remained bullish, with 16 recommending holding or buying the stock and just one advocating selling before Monday evening’s announcement.In some respects, affinity for Core Labs is understandable. Capital intensity is low, and the company generates free cash flow consistently. Executive pay is also tied mostly to financial metrics. And, of course, Core Labs has striven to maintain the dividend.The problem is that, in key respects, these perceived strengths rest on an anachronism. Compensation, while tied to financial performance, also remains tied overwhelmingly to relative rather than absolute performance — which doesn’t do much for shareholders in an energy sector this troubled. Meanwhile, sticking with a dividend is laudable only if it isn’t hollowing out your balance sheet and, as the risk premium rises, the stock price it ostensibly supports.Core Labs has finally done the right thing but will inevitably pay a heavy price, at least in the short term. Beware oilfield services stocks as a whole, however, which are up almost a fifth this month on the back of a 10% rally in oil prices. Core Labs’ capitulation suggests the sector is about to undergo another round of warnings and cuts to guidance and forecasts as expectations of recovery get pushed out again.One silver lining (it is New Year’s Eve, after all) is that the oilfield services sector’s continuing woes indicate that recently-discovered discipline on the part of exploration and production companies may be sticking. This, in turn, would start to restore resilience to the contractors’ customer base and, by reining in U.S. supply, offer support to oil prices.If that sounds like a lot of ifs and maybes strung together, that’s because it is. Core Labs’ cut closes out a decade in which the oil business in general stuck with a growth model relying implicitly on higher oil prices filling gaps in cash flow — while that same dash for growth undermined those oil prices. As most of us know from bitter experience, a truly happy new year begins with a little restraint beforehand.To contact the author of this story: Liam Denning at email@example.comTo contact the editor responsible for this story: Mark Gongloff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.
The Amsterdam oil-services provider says it has been hit by a falloff in U.S. drilling activity and slower than expected client discussions on major projects.
Core Laboratories N.V. said late Monday that it was slashing its fourth-quarter guidance, cutting its dividend and issued a first-quarter forecast. Core Labs shares fell more than 7% in the extended session. Blaming declines in the U.S. rig count and slower-than-expected progress in client discussions for large international and offshore projects, Core Labs said it projected fourth-quarter earnings of 37 cents to 38 cents a share on sales of $154 million to $156 million. The company said it expects first-quarter 2020 earnings of 39 cents to 41 cents a share and revenue of $159 million to $164 million. The company also said it planned to reduce its quarterly dividend to 25 cents a share from 55 cents a share because of modest growth in international markets and the "near-term and continued volatility in the U.S. land market." Core Labs stock has fallen 20% this year, as the S&P 500 index has gained 29%.
Core Laboratories (NYSE: "CLB US" and Euronext Amsterdam: "CLB NA") will broadcast its fourth quarter 2019 conference call over the Internet at 7:30 a.m. CST / 2:30 p.m. CET on January 30, 2020.
Core Laboratories N.V. (NYSE: "CLB US" and Euronext Amsterdam: "CLB NA") ("Core", "Core Lab", or the "Company") is announcing revised guidance from continuing operations for the fourth quarter of 2019, initial first quarter 2020 guidance and a reduction of its future quarterly dividend.
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