But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Must-know: Comparing Schlumberger and its peers
Baker Hughes (BHI), the smallest among its peers, also has the lowest EV to earnings before interest, taxes, depreciation, and amortization (or EBITDA) multiple at 8.7x—SLB has the highest EV to EBITDA ratio in the group at 12.1x.
Schlumberger holds an ambivalent view of the global economy, albeit with the conviction of a slow but steady recovery—it also expects drilling activity in the U.S. to increase following the exceptionally harsh winter that suppressed economic activity.
Earnings before tax in North America increased to $700 million in 2Q14 from $662 million in 2Q13. However, earnings before taxes (or EBT) margin—net income before tax as a percentage of revenues—declined by 1.7% to 18% in 2Q14.
It provides services for oil and gas well drilling and completion as well as electrical submersible pumps and gas lift equipment—the group develops coiled tubing equipment and services, provides water resources protection services, and storage site characterization for carbon dioxide.
The group manufactures roller cone and fixed cutter drill bits, drilling fluid systems, mud logging services, directional drilling, measurement-while-drilling and logging-while-drilling services, and various drilling tools.
The services provided by the group include reservoir imaging, monitoring, and development services; evaluation of subsurface formation rocks and fluids; and E&P pressure and flow-rate measurement services.
From 2Q13 to 2Q14, SLB’s revenues from the International Operations—operations outside North America—increased at a higher rate of ~8% compared to its North American operations at ~6%.
For the six months ending June 30, 2014, SLB’s revenues went up by 7.1% to $23.3 billion versus $21.7 billion recorded for the first six months of 2013.
Schlumberger released its financial information for the 2Q14 on July 17, 2014. The company recorded total revenues of $12.1 billion for 2Q14—up 7.8% from $11.2 billion recorded in 2Q13.
JetBlue has lived up to its mission of “bringing humanity back to air travel” as reflected in its customer satisfaction scores.
As of December 2013, JetBlue Airways (JBLU) had cash and cash equivalents of $225 million. JetBlue’s cash position has improved by 24% from $182 million in 2012.
JetBlue Airways’ (JBLU) operating revenue has increased at a four-year compound annual growth rate of 13.4%. But, its operating margin decreased to 7.9% in 2013 from 8.7% in 2009 since operating expenses have been growing at a higher rate.
With a union, JetBlue might lose its advantage of having the lowest salary cost per available seat mile of $2.65 among its peers. Operating costs will also increase.
The U.S. airline industry’s major cost drivers include fuel and employee costs. Both comprise more than half of the total operating costs of airlines.
Higher aircraft utilization will result in lower fixed costs per unit, as the costs spread across more air trips and passengers and results in lower cost per available seat mile.
JetBlue Airways’ (JBLU) high-margin ancillary, non-ticket, revenue increased by 13%, $670 million, in 2013. JetBlue expects the total ancillary revenue to grow by 10% to reach 15% in 2014.
JetBlue Airways’ (JBLU) operating revenue has increased at a four-year compounded annual growth rate (or CAGR) of 13.4%, driven primarily by the growth in passenger revenue.
According to the J.D. Power 2014 North America Airline Satisfaction Study, JetBlue ranks first among low-cost carriers, with a score of 789.
JetBlue has almost equal share in Florida, Latin America, and the transcontinental region which together accounted for about 87% of JetBlue’s total capacity.
JetBlue (JBLU) operates a hybrid business model that caters to the niche market comprising customers that it defines as “underserved customers.”