Schlumberger quarterly profit increases as demand for petroleum services picks up

By Liz Hampton and Arunima Kumar

(Reuters) – Leading oil company Schlumberger NV on Friday reported an increase in its adjusted third-quarter income, supported by higher demand for its services and equipment, as producers benefit from a rebound in crude prices.

Global oil prices have climbed nearly 64% since the start of 2021 to more than $ 85 a barrel thanks to a recovery in demand fueled by vaccines. The number of rigs worldwide was 1,448 at the end of the third quarter, up from 1,019 a year earlier, according to data from Baker Hughes.

“The industry’s macroeconomic fundamentals have visibly strengthened this year, especially in recent weeks – with a pick-up in demand, prices for oil and gas products at recent highs, low inventory levels and encouraging trends in markets. pandemic containment efforts, “said Olivier Le Peuch, CEO of Schlumberger. in a statement, adding that he expects these conditions to significantly stimulate investment in the coming years.

Schlumberger reported net income of $ 550 million, or 39 cents per share, for the quarter, beating Wall Street estimates of 36 cents each, according to Refinitiv IBES. Revenue of $ 5.8 billion fell short of analysts’ expectations of $ 5.9 billion, but grew 11% year-over-year.

Excluding charges and credits, net income was $ 514 million, or 36 cents per share, for the quarter ended Sept. 30, higher than $ 228 million, or 16 cents per share, a year earlier.

Wall Street analysts said the results were positive, indicating an improvement in higher margins, which exceeded expectations.

“These results are a wonderful breath of fresh air,” analysts at investment firm Tudor, Pickering, Holt & Co wrote in a note that called the start of the oilfield earnings season “difficult.” .

Rivals Halliburton and Baker Hughes both posted quarterly profit on last year’s losses this week, but results were shaken by disruption from Hurricane Ida and supply chain issues.

Its shares were stable in pre-market trading at $ 34.30. They are up 57.12% year-to-date, beating the gains of Baker Hughes and Halliburton.

(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila and David Evans)