BAKU, Azerbaijan, Jan. 17
By Leman Zeynalova - Trend:
Full-year worldwide revenue of Schlumberger stood at $32.9 billion in 2019, which was flat year-on-year, with international revenue growth of 7 percent, Trend reports citing the company.
Schlumberger said in its report on the fourth quarter and full 2019 results that it generated $2.7 billion in free cash flow. Full-year pretax segment operating margin of 12 percent, however, was slightly down year-on-year, said the company.
“International revenue, excluding Cameron, grew 8 percent and was consistent with our expectations of high single-digit growth. Most of our international GeoMarkets benefited from these favorable market conditions, and almost half of them registered double-digit, year-on-year revenue growth driven by exploration activity, offshore operations, and acceleration of the industry’s digital transformation. Compared with the first half of 2019, international pretax segment operating margin improved by 100 basis points (bps) in the second half of the year—a firm step toward our strategic target of margin expansion,” reads the report.
In contrast, after two years of strong growth, North American revenue fell sharply, driven largely by the land market weakness affecting the company’s OneStim® pressure pumping business, as customers reached their budget limits earlier in the year and remained highly disciplined on capital spend.
“Fourth quarter revenue of $8.2 billion was 4 percent lower sequentially. International revenue of $5.7 billion grew 2 percent sequentially and 8 percent year-on-year. North America revenue of $2.5 billion, however, dropped 14 percent sequentially due to customer budget exhaustion and cash flow constraints,” said Schlumberger.
“Sequential international growth was led by the Middle East & Asia area, where revenue increased 5% driven by higher year-end product sales in Kuwait, Iraq, and Oman; delivery of additional lump-sum-turnkey (LSTK) wells in Saudi Arabia; and increased Well Services activity in Qatar. Latin America revenue grew 1 percent due to stronger WesternGeco® multiclient seismic license sales in the Mexico Bay of Campeche, while revenue in the Europe/CIS/Africa area only declined 2 percent given the mild winter slowdown of activity in the Northern Hemisphere that was partially mitigated by strong year-end product sales and Software Integrated Solutions (SIS) digital software sales.”
---
Follow the author on Twitter: @Lyaman_Zeyn