Schlumberger Beats Earnings Estimates As Q2 Revenues Grow By 10%

The world’s largest oilfield services provider Schlumberger (NYSE: SLB), reported on Friday third-quarter earnings beating analyst estimates, thanks to accelerating international drilling activity on top of already robust activity in North America.   

Schlumberger reported earnings per share (EPS), excluding charges and credits, of $0.63 for the third quarter, up by 26% sequentially and 75% year on year. The earnings easily beat the analyst consensus in The Wall Street Journal of $0.55 per-share earnings.

Schlumberger’s total revenues grew by 10% from the second quarter and by 28% from Q3 2021 and stood at $7.477 billion for the third quarter of 2022. International revenue rose by 13% from Q2 2022 and by 26% from Q3 2021, while revenues in North America were flat quarter-on-quarter and up by 37% year over year.

“The second half of the year is off to a great start with strong third-quarter results that reflect the acceleration of international momentum and solid execution across our Divisions and areas,” Schlumberger’s chief executive Olivier Le Peuch said, commenting on the figures. 

“Sequentially, we delivered another quarter of double-digit revenue growth and margin expansion, as the pace of growth in our international business stepped up significantly, complementing already robust levels of activity in North America,” Le Peuch added.

Looking forward, Schlumberger remains upbeat on the drilling activity globally and expects “multiple years of growth,” the executive added.

“While concerns remain over the broader economic climate, the energy industry fundamentals continue to be very constructive,” said Le Peuch. 

Related: Global Oil Demand Rebounded By 2 Million Bpd In August

The need to rebuild spare capacity and an urgent need for increased investment to rebalance markets “are resulting in a supply-led upcycle, characterized by the decoupling of upstream investment from near-term demand volatility,” he noted.

“Taken together, we expect these constructive fundamentals and secular trends to support multiple years of growth.”

Earlier this week, another oilfield services provider, Baker Hughes, signaled that the worst supply chain issues “should be behind us,” as this could indicate U.S. crude production could meaningfully increase in 2023.

Halliburton, the remaining of the top three service providers and the one with the biggest exposure to North America, reports Q3 figures on October 25.  

By Josh Owens for Oilprice.com 

More Top Reads From Oilprice.com:

• Chinese Steel Manufacturers On The Brink Of Bankruptcy
• Oil Prices On Course For A Second Consecutive Weekly Loss
• Supertanker Rates Soar As Chinese Refiners Ramp Up Imports