On Friday, top oilfield services provider Schlumberger (NYSE: SLB) Ltd reported a 64.9 per cent jump in Q3 profit as a rise in oil and gas prices led to more drilling activity.
Oil and gas producers plan to increase production as crude prices stay near eight-year highs, boosting demand for Schlumberger’s equipment, services and technology. Brent crude prices averaged USD 98.96 a barrel during the quarter, up 33 per cent. The average US oil rig count in September-end jumped to 762 from 508 during the same period last year. The total international rig count was 28 per cent higher at 1,853. Net income was USD 907 million, or 63 cents a share, in the three months ended September 30, compared with USD 550 million, or 39 cents per share, a year ago. The company said its adjusted earnings and pre-tax segment operating margin of 18.7 per cent were the highest since 2015. He anticipates Schlumberger will see continued revenue growth and margin expansion in the fourth quarter of this year.
Shares were up 1.77 per cent in pre-market trading to USD 46.50.
Schlumberger’s total revenue increased 28 per cent to USD 7.48 billion, with international operations bringing in USD 5.88 billion. Wall Street had expected revenue of USD 7.1 billion for the quarter.
International revenue was up 13 per cent sequentially and 26 per cent from a year ago, while in North America, revenue was flat compared to the prior quarter but up 37 per cent from last year. Rival Baker Hughes Co topped Wall Street expectations for third-quarter adjusted profit on Wednesday. Halliburton (NYSE: HAL) Co reports its quarterly results next week.