Schlumberger earnings beat expectations for increased drilling

Written by Liz Hampton and Rohi Soni

October 21 – Oilfield services provider Schlumberger Limited on Friday reported its biggest adjusted profit since 2015, as third-quarter gains beat Wall Street expectations as higher oil and gas prices drove up drilling.

Oil companies are seeking to increase production as crude oil prices remain near eight-year highs, fueling demand for Schlumberger equipment, services and technologies.

Brent crude prices averaged $98.96 per barrel during the quarter, an increase of 33%.

Net income was $907 million, or 63 cents a share, in the three months ended September 30, compared with $550 million, or 39 cents a share, a year earlier.

Analysts expected Schlumberger to earn 55 cents per share, according to Refinitiv. IBES.

The company said its adjusted profit and pre-tax operating margin, at 18.7%, were the highest since 2015.

“The pace of growth in our international business has intensified significantly, complementing already strong levels of activity in North America,” CEO Olivier Le Buch said in a statement.

The average number of oil rigs in the United States at the end of September was 762, up from 508 in the same period a year earlier. The total number of international platforms increased by 28% to 1,853, according to Baker Hughes.

The company’s total revenue increased 28% to $7.48 billion, with international operations contributing $5.88 billion. Wall Street forecast revenue of $7.1 billion for the quarter.