SLB tops earnings estimates on demand for international drilling

The entrance to oilfield service provider SLB’s office in Houston, Texas, showing the former Schlumberger’s new name and logo, is seen in this handout image taken June 2023. Courtesy of SLB/Handout via REUTERS/File Photo

Q2 net income excluding items 72 cents per share
Analysts on average estimated 71 cents per share
International revenue up 21% to $6.3 billion
Sees North America activity moderating

July 21 (Reuters) – SLB (SLB.N) beat analysts’ estimates for quarterly profit on Friday as a rebound in offshore and international drilling activity boosted demand for its oilfield services and equipment, even as activity in North America declined.

Drilling activity in regions such as the Middle East and Asia, as well as offshore activity in the U.S. Gulf of Mexico, Africa and Brazil, has increased since Russia’s invasion of Ukraine last year.

However, SLB, the top oilfield service company, joined its rivals Halliburton (HAL.N) and Baker Hughes (BKR.O) in forecasting tepid North American activity, sending its shares down more than 1% in early trading.

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“We continue to see positive upstream investment momentum in the international and offshore markets,” SLB chief Olivier Le Peuch said in a statement, adding that North America activity was moderating. International revenue, which makes up more than three quarters of the company’s total, rose 21% to $6.3 billion in the three months to June 30, while revenue from North American climbed 14% to $1.75 billion.

The company, formerly called Schlumberger, reported net income excluding items of 72 cents per share for the three months ended June 30, compared with analysts’ average estimate of 71 cents per share, according to Refinitiv data.

Revenue of $8.1 billion fell slightly blow analysts’ estimate of $8.2 billion.

Reporting by Arathy Somasekhar in Houston and Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila and David Holmes