Schlumberger Posts Higher 1Q Profit as Rising Oil Prices Boost Demand for Its Services

Reuters
Friday, April 22, 2022

Top oilfield services firm Schlumberger reported a higher first-quarter profit on Friday and increased its dividend by 40%, as rising oil prices boosted demand for services and equipment.

Oil prices climbed to their highest in more than a decade during the quarter as Russia's invasion of Ukraine upended global supply dynamics. The international rig count was up to 815 at the end of March, an increase of 100 rigs from a year ago, according to Baker Hughes.

"The confluence of elevated commodity prices, demand-led activity growth, and energy security is resulting in one of the strongest outlooks for the energy services industry in recent times," Schlumberger Chief Executive Officer Olivier Le Peuch said in a statement.

He anticipates significant growth in the second half of the year and that the company will exit 2022 with EBITDA margins at least 200 basis points higher than the fourth quarter of 2021.

Schlumberger also approved a 40% increase in its quarterly cash dividend to 17.5 cents per share.

Analysts for Tudor, Pickering, Holt & Co said the results were in-line with expectations, and called the dividend bump "a very welcomed surprise."

Shares were up 2.34% in pre-market trading to $41.60.

U.S. West Texas Intermediate CLc1 is trading around $102.40 a barrel while Brent LCOc1 is trading at $106.90, both down about 1.3%.

The company's total revenue rose 14% to $5.96 billion in the quarter, with international revenue up around 10% led by Latin America, due to higher drilling in Mexico, Ecuador, Argentina, and Brazil. In its Europe, CIS and Africa division, revenue fell 12% sequentially due to a seasonal decline in activity and depreciation of the Russian rouble.

The company posted adjusted net income of $488 million, or 34 cents per share, in the three months ended March 31, compared with $299 million, or 21 cents per share, a year earlier. Analysts had anticipated earnings of 33 cents per share, according to Refinitiv IBES.

(Reporting by Shariq Khan and Rithika Krishna in Bengaluru; Editing by Arun Koyyur, Chizu Nomiyama, Kirsten Donovan)

Categories: Drilling Industry News Activity Europe North America Oilfield Services

Related Stories

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CNOOC Puts Into Production New Oil Field in South China Sea

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

Current News

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

BW Opal FPSO Vessel set for Work off Australia

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Petronas, Inpex Secure Oil and Gas Exploration Rights off Indonesia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com