Schlumberger rises 3Q profits amid oilfield services demand boom

Schlumberger New Energy

Schlumberger, top oilfield services company, released this Friday its third quarter of the year financial results. Profits of the company raised for the 3Q amid a rebound in oilfield services as producers capitalize on the rising crude oil prices.

Firstly, the company reported a net income of $550 million, or 39 cents per share, for the quarter. According to Refinitiv IBES, Wall Street estimations were for 36 cents per share. Excluding charges and credits, the net income for the company came in at $514 million; or 36 cents per share, for the three months ended Sept. 30; higher than $228 million, or 16 cents per share, a year earlier.

In addition, the company fell slightly short of estimations after a reported revenue of $5,8 million versus a $5,9 million estimate. Nevertheless, revenue was up 11% from year to year. As a result, and according to Reuters, Wall Street analysts said the results were positive, pointing to improved higher margins, which topped expectations.

Moreover, analysts for investment firm Tudor, Pickering, Holt & Co, said. “These results are a wonderful breath of fresh air.”

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Schlumberger expects further investment for the years to come

As we have reported previously, rivals Halliburton and Baker Hughes also posted their 3Q financial results this week. Both companies reported losses attributable to the disruptions from Hurricane Ida. However, both companies had a strong performance reporting solid gain.

About the matter, Schlumberger Chief Executive Officer Olivier Le Peuch said in a statement. “The industry macro fundamentals have visibly strengthened this year, particularly in recent weeks- with demand recovery, oil and gas commodity prices at recent highs, low inventory levels, and encouraging trends in pandemic containment efforts.” He also added that he expects those conditions to materially drive investment over the coming years.

After the news of the company’s results, its shares kept flat in pre-market trading at $34.30. They are up 57.12% year-to-date, outpacing gains in Baker Hughes and Halliburton.

Finally, in the bigger picture, oil prices have indeed boosted; they have climbed nearly 67% this year, to trading at around $85 per barrel, having reached $86+ per barrel this week. With such prices, producers are more confident to drill more. As a result, the worldwide rig count was 1,448 at the end of the third quarter, compared with 1,019 a year earlier, according to Baker Hughes data.

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