Revenue by geography
In the past one year, Schlumberger’s (SLB) North America revenue share has come down. In 1Q16, SLB’s revenue from North America fell to 22% of its total revenues compared to 32% in 1Q15. In comparison, Halliburton’s (HAL) 1Q16 revenues from North America fell 49% over 1Q15. SLB makes up only 1.2% of the iShares S&P 500 Value ETF (IVE). The energy sector makes up 13.2% of IVE.
Will rig count affect Schlumberger?
In the past one year through 1Q16, the US rig count has fallen 56%. During this period, the international rig count fell only 21%.
From March 31 to June 30, the US rig count further fell by 9% while the international rig count fell 3% during the same period. Lower rig count is expected to hurt SLB’s revenues and earnings in 2Q16.
Next, we’ll discuss Schlumberger’s growth drivers.