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Worth notingAgendaSLBFri, Oct 23 Time to be announced1 min read
SLB provides technology, equipment and services for developing and operating oil and gas fields. Its business therefore helps show whether energy producers continue spending on projects. Halliburton recently placed its growth case in international and deepwater work rather than a North American recovery. SLB can test whether that pattern extends to another global supplier and whether additional business produces profits and cash.[1]
Compare revenue and orders by region with operating margins, capital spending and free cash flow—the operating cash left after capital expenditure. International growth with sound margins and cash could support service and equipment stocks exposed to overseas and deepwater projects. Slower activity or heavier investment with weak cash would challenge extrapolation from Halliburton. Energy producers benefit from available service capacity, but more expensive services raise development costs. Follow actual customer projects, and do not read international strength as a North American recovery.[1]