Analyst Note| Preston Caldwell |
Schlumberger reported a 6% sequential decline in revenue in the first quarter, due mostly to divestures, especially the sale of OneStim (its North America pressure pumping operations) to Liberty Oilfield Services on Dec. 31, 2020. Excluding divestures, revenue fell 1% sequentially. This was driven by a 3% drop in international markets (reflecting the usual seasonal drop), offset by a 10% increase in North America on the back of industrywide activity improvement. Our fair value and narrow moat rating are unchanged following the results.