LONDON - Schlumberger Ltd . (NYSE: NYSE:SLB) shares edged up 1.85% as the company reported second-quarter earnings and revenue that surpassed analyst expectations.
The oilfield services giant posted adjusted earnings per share (EPS) of $0.85, which was $0.02 higher than the consensus estimate of $0.83. Revenue for the quarter also exceeded forecasts, coming in at $9.14 billion against the anticipated $9.08 billion.
The company's revenue saw a 5% sequential increase and a 13% rise compared to the same period last year, indicating robust growth amidst an improving market environment. The growth was largely attributed to broad-based international revenue growth and margin expansion across all divisions, with the company's CEO, Olivier Le Peuch, highlighting the highest quarterly international revenue since 2014.
SLB's adjusted EBITDA for the quarter increased by 11% sequentially and 17% YoY, reaching $2.29 billion, reflecting the company's strong operational performance and efficiency. Cash flow from operations stood at $1.44 billion, and free cash flow was reported at $776 million.
Le Peuch expressed confidence in the company's trajectory, stating, "We achieved solid second-quarter results, with broad-based international revenue growth and margin expansion across all Divisions. Our Core business continued to build on its positive momentum and our digital business accelerated, resulting in our highest quarterly international revenue since 2014."
He further noted the sequential revenue growth of 5%, led by the Middle East & Asia, which increased by 6%. The increase was driven by capacity expansions, gas development projects, and production and recovery, with a majority of GeoUnits in the area achieving record revenue.
Looking ahead, SLB anticipates ongoing momentum in the international markets, strong digital sales, and cost efficiency programs to enable further margin expansion and deliver on its ambition to grow full-year adjusted EBITDA in the mid-teens.
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