Proactive Investors - Schlumberger Limited. (NYSE:SLB) has reported second-quarter earnings that came in ahead of consensus estimates, driven by strong growth in international markets, including the Middle East and Asia.
The oil services company said while rig count in North America was down over the period, it still managed to grow revenue by 14% as it benefited from its “agility across the most resilient basins and market segments”. International revenue grew by 21%.
Total revenue for the three months to June 30, 2023, amounted to $8.1 billion, up 5% from the prior quarter and 20% higher than 2Q 2022 — but shy of the $8.2 billion pencilled in by Wall Street.
Adjusted earnings per share (EPS) rose 44% year-over-year to $0.72, marginally higher than the $0.71 consensus forecast of 10 analysts, according to Zacks Investment Research.
“As the upcycle continues to unfold, we are excited about the opportunities for our business, with international- and offshore-led growth fueling strong pretax segment operating margin expansion and cash flows as highlighted in this quarter’s results,” CEO Olivier Le Peuch said in a statement.
“We are very well positioned in these markets, as international represents nearly 80% of our global revenue, and offshore constitutes approximately half of that. Both sequentially and year on year, we saw broad international revenue growth that resulted in margins expanding across all divisions and geographical areas.”
The company said it continues to see positive upstream investment momentum in international and offshore markets, driven by resilient long-cycle offshore developments, production capacity expansions, the return of global exploration and appraisal, and the recognition of gas as a critical fuel source for energy security and the energy transition.
“As international spending builds further momentum in the second half of 2023 and North America moderates as anticipated, this cycle continues to align closely with SLB’s strengths, affirming our confidence in our full-year financial ambitions,” Le Peuch added.
Schlumberger’s shares were down 2% at $57.26 in pre-market trading.