Home Service company Schlumberger raises revenue forecast as oil services boom

Schlumberger raises revenue forecast as oil services boom

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The exterior of a Schlumberger Corporation building is pictured in West Houston January 16, 2015. Schlumberger, the world’s largest oilfield service provider, said it will cut 9,000 jobs, or about 7% of its workforce, as it focuses on cost control amid falling oil prices. REUTERS/Richard Carson

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July 22 (Reuters) – Schlumberger NV (SLB.N) raised its full-year revenue forecast on Friday after beating analysts’ second-quarter profit forecast, buoyed by stronger demand for its oilfield services and equipment.

The company benefited from an upturn in activity driven by higher oil and gas prices. Global crude prices hovered above $100 a barrel last quarter, fueled by tight supplies following Western sanctions on the top Russian producer and the return of energy consumption to levels near those before the pandemic.

“The multi-year bull cycle continues to gain momentum, with upstream activity and service pricing steadily increasing both internationally and in North America, translating into a stronger outlook for Schlumberger” , Chief Executive Olivier Le Peuch said in a statement.

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Schlumberger’s upbeat outlook follows a mixed quarter for the world’s largest oilfield service providers. Baker Hughes warned that the demand outlook for the next 12-18 months is “deteriorating” while Halliburton Co (HAL.N) forecast “several years” of increased activity.

Schlumberger said he now expects a percentage increase in teen revenue for 2022, which would be at least $27 billion. He had previously predicted growth in mid-teens.

Schlumberger shares rose 2.7% to $34.52 in premarket trading.

Rising crude prices led to a 57% jump in the number of U.S. rigs and an 8.7% year-over-year increase in the number of international rigs, according to data from Baker Hughes .

Schlumberger reported net income of $959 million, or 67 cents per share, for the quarter ended June 30, compared with $431 million, or 30 cents per share, a year earlier.

Per share, Schlumberger reported earnings of 50 cents, versus an average analyst estimate of 40 cents, according to IBES data from Refinitiv.

Revenue of $6.8 billion also beat Wall Street’s forecast of $6.28 billion, according to IBES data. International sales increased 12% from the previous quarter, while in North America, revenue jumped 20%.

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Reporting by Rithika Krishna in Bengaluru; Editing by Sriraj Kalluvila and Elaine Hardcastle

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