Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

SLB & HAL Q3 Earnings Review: International Operations Strong

By Zacks Investment ResearchStock MarketsOct 21, 2019 10:34PM ET
www.investing.com/analysis/slb--hal-q3-earnings-review-international-operations-strong-200476188
SLB & HAL Q3 Earnings Review: International Operations Strong
By Zacks Investment Research   |  Oct 21, 2019 10:34PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Lower drilling and fracking activities as well as conservative capital spending by explorers have slowed down onshore North American crude production in third-quarter 2019.

Despite this, Schlumberger (NYSE:SLB) — the world’s largest oilfield service player — has managed to beat the Zacks Consensus Estimate for third-quarter earnings, while another oilfield service major Halliburton (NYSE:HAL) met estimates. Significant exposure to profitable international markets that include Latin America, Europe, Africa, Middle East and Asia, helped the oilfield service giants make up for the weak North American operations.

International Activities Aid Q3 Earnings

In the September quarter of 2019, there has been significant year-over-year improvement in drilling operations in the oil and natural gas plays of international markets. Per data provided by Baker Hughes Company (PS:BKR) , the total count of oil and gas drilling rigs in the months of July, August and September of 2019, was 1162, 1138 and 1131, respectively. In the year-ago months, the tallies were recorded at 997, 1008 and 1004, respectively.

Since oilfield service firms assist explorers and drillers in setting up oil and gas wells, the ramp-up in international drilling operations has contributed to the companies’ third-quarter earnings.

Schlumberger’s major business segments — Reservoir Characterization, Drilling and Production — were majorly driven by a pickup in international activities. The company reported third-quarter 2019 earnings of 43 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 40 cents, thanks to higher wireline activities in Russia and Australia along with contributions from international drilling operations.

Smaller rival Halliburton reported that improved Eastern Hemisphere drilling operations have aided its Drilling and Evaluation segment in the third quarter. A surge in cementing jobs in the Eastern Hemisphere contributed to Halliburton’s Completion and Production business performance.

Meanwhile, a couple of oilfield service companies that are likely to beat estimates are Core Laboratories (NYSE:CLB) and TechnipFMC plc (NYSE:FTI) .

Our proven model predicts an earnings beat for Core Laboratories and TechnipFMC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Based in Amsterdam, the Netherlands, Core Laboratories is scheduled to report third-quarter 2019 earnings on Oct 23, after the closing bell. The company has an Earnings ESP of +0.69% and a Zacks Rank #3.

The other leading firm is TechnipFMC, headquartered in London, the U.K. The company, scheduled to report third-quarter earnings on Oct 23, has an Earnings ESP of +6.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Growth Outside North America Will Continue to be Robust

Lately, there has been an increase in the number of final investment decision (FID) approvals for new E&P projects in markets outside North America. With the count of drilling rigs in international plays steadily rising, Schlumberger expects a 7% to 8% increase in project spending by explorers in this area this year. Thus, more international oilfield service contracts await the company.

Meanwhile, Halliburton anticipates international revenue growth of a high single-digit rate in 2019. The company expects customers to revive spending in multiple regions outside North America.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>



Baker Hughes, a GE company (BKR): Free Stock Analysis Report

TechnipFMC plc (FTI): Free Stock Analysis Report

Core Laboratories N.V. (CLB): Free Stock Analysis Report

Halliburton Company (HAL): Free Stock Analysis Report

Schlumberger Limited (SLB): Free Stock Analysis Report

Original post

Zacks Investment Research
SLB & HAL Q3 Earnings Review: International Operations Strong
 

Related Articles

SLB & HAL Q3 Earnings Review: International Operations Strong

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email