=Schlumberger (SLB) reported 4Q earnings on Thur 21 Jan 2016 (a/h)

** charts before earnings **



** charts after earnings **

Schlumberger beats by $0.02, reports revs in-line; announces new $10 bln share repurchase  :

• Reports Q4 (Dec) earnings of $0.65 per share, excluding non-recurring items,$0.02 better than the Capital IQ Consensus of $0.63; revenues fell 38.7% year/year to $7.74 bln vs the $7.79 bln Capital IQ Consensus. 
• Capex (excluding multiclient and SPM investments) is expected to be $2.4 billion for 2016. Capex for the full year 2015 was $2.4 billion.
• "Fourth-quarter revenue decreased 9% sequentially driven by the continuing decline in rig activity and persistent pricing pressure throughout our global operations that also suffered from activity disruptions and project delays and cancellations. North America revenue fell 14% sequentially as the US land rig count declined 15% and customer E&P budgets were exhausted. International revenue declined 6% due to the combination of customer budget cuts, the start of the seasonal winter slow-down, persistent pricing pressure, and the largely muted year-end product, software, and multiclient seismic license sales. "Among the business segments, Production Group revenue declined by 10% on lower pressure pumping services in North America. Reservoir Characterization and Drilling Group revenues declined sequentially by 7% and 8%, respectively, on lower demand for exploration-related products and services in the International Areas as customer budgets were exhausted. These effects were amplified by the almost complete absence of the year-end product, software, and multiclient seismic license sales that have typically offset seasonal winter slow-downs in previous years...
• We remain constructive in our view of the market outlook in the medium term, and continue to believe that the underlying balance of supply and demand will tighten, driven by growth in demand, weakening supply as E&P investment cuts take effect, and by the size of the annual supply replacement challenge."
• Expects to close Cameron (CAM) acquisition in Q1.
• New share repurchase program of $10 billion approved
• Peers: HAL, BHI, WFT; ETF: OIH.