Oil prices fuel Schlumberger Q4 earnings beat
Yahoo Finance's Julie Hyman and Brian Sozzi discuss oil prices rising and how that's affecting earnings for oilfield services company Schlumberger.
JULIE HYMAN: One of those places, though, that we're not seeing red has been in Schlumberger this morning, the giant oilfield services company. Actually, I stand corrected. It is down. It was higher earlier after the company's numbers. Now it's a little changed. Oil prices are lower. And as Jared just showed you, the XLE, that's the energy ETF, is trading lower as well. But this is, as the company reports, its best results since before the pandemic. It's going to raise capital spending this year. Fourth quarter profit, $0.41 a share, and ahead of estimates. Revenue at $6.2 billion.
And the company, perhaps, a sign of what is happening more broadly in the oilfield services industry. As we have seen prices go higher, there is this capital spending cycle here that could help boost the industry. We heard similar commentary and numbers yesterday from Baker Hughes. So it does seem like we are seeing a bit of a trend here in oilfield services, Sozz.
BRIAN SOZZI: Yeah. And our very own Jared Blikre noting the company is essentially minting money-- free cash flow over a billion dollars. Julie, maybe they shouldn't make a play for Peloton here. Makes a lot of sense. Kind of like that Blue Apron/Peloton maneuver.
JULIE HYMAN: I'm trying to think of some way in which that would work, and I just can't--
BRIAN SOZZI: Well, you put Peloton bikes on every oil rig. I mean, if you think about it--
JULIE HYMAN: Oh, there you go.
BRIAN SOZZI: --really, to me, it makes a lot of sense.
JULIE HYMAN: OK, all right.
BRIAN SOZZI: But what do I know? What do I know?
JULIE HYMAN: All right. I see it. I see it. All right, let's--