© Reuters. FILE PHOTO: The SLB logo is seen in this undated image obtained by Reuters on October 19, 2022. SLB/Handout via REUTERS THIS IMAGE WAS PROVIDED BY A THIRD PARTY. MANDATORY CREDIT./File Photo
By Arunima Kumar and Liz Hampton
(Reuters) – SLB beat Wall Street estimates for fourth-quarter earnings on Friday, buoyed by strong demand for drilling rigs and services from operators as oil and gas prices remained elevated in amidst shortage of supplies.
SLB benefited from increased oil drilling and production activity both in North America and internationally last year. North America revenue increased 27% to $1.63 billion in the reported quarter, while international revenue increased 26% to $6.2 billion.
Prices are currently around $86.24 a barrel, and averaged around $84 a barrel for the quarter, up from around $79 a barrel at the same time last year. The average international rig count for the quarter was 1,872, up nearly 22% from the prior year.
“Global upstream spending projections continue on a positive trend. Activity growth is expected to be broad-based, marked by an acceleration in international basins,” said Olivier Le Peuch, chief executive of SLB, adding an easing of COVID-19 restrictions in China. it would also be supportive this year.
He anticipates higher service prices as capacity in the sector remains limited.
Formerly called Schlumberger (NYSE:), the leading oilfield services company’s net income, excluding items, was $1.03 billion, or 71 cents per share, for the three months ended December 31, compared with the estimate for analysts at 68 cents per share, according to refinitiv data.
The shares were mostly flat in premarket trading at $57.38 apiece. They are up 55% from a year ago.
