SLB ( NYSE: SLB ) +1.2% pre-market Friday after the oil services company reported Q4 adjusted earnings and revenues that beat analyst estimates while raising its quarterly dividend to $0.25/share.
The company formerly called Schlumberger said Q4 GAAP net income rose to $1.07B, or $0.74/share, from $601M, or $0.42/share, in the prior-year period, adjusted EBITDA jumped 39% Y/Y and 9% Q/Q to $1.92B, and revenues rose 27% Y/Y and 5% Q/Q to $7.88B, including a 27% Y/Y jump in revenues from North America to $1.63B and a 26% gain in international sales to $6.19B.
Q4 sales by segment: Well Construction up 35% Y/Y and 5% Q/Q to $3.23B, Production Systems up 26% Y/Y and 3% Q/Q to $2.21B, Reservoir Performance up 21% Y/Y and 7% Q/Q to $1.55B, and Digital & Integration up 14% Y/Y and 12% Q/Q to $1.01B.
Q4 pretax segment operating margins and EPS were the highest since 2015, "reflecting our enhanced earnings power and potential as activity growth momentum is sustained through the next few years," CEO Olivier Le Peuch said.
SLB ( SLB ) said capital spending and inventory increased as it exited the year in support of new international and offshore project mobilizations, which combined with lower than expected year-end collections resulted in free cash flow reducing to $900M for the quarter.
SLB ( SLB ) shares, which closed Tuesday at the highest price since October 2018, have jumped 11% YTD and 54% during the past year .
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SLB tops Q4 expectations on strong oilfield services demand