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Schlumberger Ltd SLB

Rating as of

Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Schlumberger's Q2 Margins Soar Past Prepandemic Levels Thanks to Cost-Cutting and Digital Segment

Preston Caldwell Senior Analyst

Analyst Note

| Preston Caldwell |

Schlumberger posted second-quarter revenue up 8% sequentially, and adjusted operating margins soared to 12% from 10% in the prior quarter. North America revenue increased 11% sequentially and International revenue was up 7%. Across product segments, the revenue increase and profitability improvement was broad based. Our fair value and narrow moat rating are unchanged following the results.

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Company Profile

Business Description

Schlumberger is the world’s largest supplier of products and services to the oil and gas industry. The company operates its business via multiple groups: reservoir characterization, drilling, production, and Cameron. It is investing more than any other services firm to make its offerings more bundled, which it believes is likely to be one of the key industry trends during the next 10 years. Efforts on this front are most visible via the Schlumberger Production Management business, which now accounts for 10% of its revenue.

Contact
5599 San Felipe, 17th Floor
Houston, TX, 77056
T +1 713 513-2000
Sector Energy
Industry Oil & Gas Equipment & Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 86,000

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