SLB announced GAAP net income attributable to the company of $934 million in the first quarter of 2023.
The figure marked a 12 percent sequential decline from $1.06 billion in net income posted in the fourth quarter of last year and an 83 percent increase from the $510 million in net income posted in the first quarter of 2022, SLB highlighted in its latest earnings statement.
The company’s Q1 revenue was $7.73 billion, compared to $7.87 billion in Q4 2022 and $5.96 billion in Q1 2022. International revenue was $5.98 billion in Q1 , compared to $6.19 billion in 4Q 2022 and $02.02 billion in North America. revenue was $1.69 billion in the first quarter, compared to $1.63 billion in the fourth quarter of 2022 and $1.28 billion in the first quarter of 2022. Segment operating income before taxes was of 1.39 billion dollars in the first quarter. This number stood at $1.55 billion in 4Q 2022 and $894 million in 4Q 2022.
In Q1, SLB’s Digital and Integration division posted revenue of $894 million (Q1 2022: $857 million), its Deposit and Performance division posted revenue of $1.5 billion (Q1 2022: $1.21 billion dollars), its well construction division posted revenue of $3.26 billion (1Q). 2022: $2.39 billion), and its production systems division reported revenue of $2.2 billion (Q1 2022: $1.6 billion), while a loss of $129 million was recorded in “other” (Q1 2022: $107 million loss).
SLB’s Digital and Integration division reported pre-tax operating income of $265 million (Q1 2022: $292 million) in Q1, while its Deposit and Performance division reported pre-tax operating income of taxes of $242 (Q1 2022: $160 million), its well construction division saw operating income before taxes. of $672 million (Q1 2022: $388 million), and its production systems division reported pretax operating income of $205 million (Q1 2022: $114 million). “Other” had pretax operating income of $7 million in the same period, compared with a loss of $60 million in the first quarter of 2022.
Very grateful
“I am very pleased with the start of 2023,” said SLB CEO Olivier Le Peuch in the company’s earnings statement.
“We delivered strong year-on-year revenue growth and margin expansion on a scale that instills further confidence in our financial ambition for the full year. The quarter was defined by strong momentum in offshore activity and wider international basins, especially in well construction and production systems,” Le Peuch added.
“Compared to the same period last year, revenue grew 30%, adjusted EBITDA increased 43%, EPS (excluding charges and credits) increased 85% and operating margin of the segment before tax increased 298 basis points. All divisions grew, both in North America and international markets, reflecting the strength of our portfolio across geographies and lines of business,” he continued.
Looking at the macro, Le Peuch said the company maintains its “very constructive” multi-year outlook “as the upcycle attributes and key drivers of activity continue to evolve very positively.”
“International and offshore markets continue to experience a strong resurgence in activity driven by resilient long-cycle development and capacity expansion projects,” he said in the earnings statement.
“In contrast, the US land market, which has led this rise in early entries, could lead to a plateau in activity in 2023 due to lower gas prices and the capital constraint of private mining operators and production,” he added.
“Overall, the outlook for global activity for the full year remains very strong. During the first quarter, the resilience, breadth and durability of this upcycle became more evident, particularly in international markets Le Peuch continued.
Moody’s, BofA Global Research
In a statement sent to Rigzone, Elena Nadtotchi, senior vice president of Moody’s Investor Services, said that “SLB’s strong first quarter results point to increased earnings and margins and a continued improvement in its credit profile , already improved by previous debt repayments”.
“The pick-up in the investment cycle in the Middle East and offshore international business, supported by new signed contracts, will offset relative weakness in the US business in the near term,” Nadtotchi added in the statement.
In an oilfield services report sent to Rigzone in January, BofA Global Research noted that SLB remained among its “top picks.”
“With our preference still for international and offshore leverage, our 2H22 favorites SLB and FTI remain our favorites in ’23,” BofA Global Research stated in this report.
To contact the author, please send an email andreas.exarcheas@rigzone.com
