Schlumberger Names New CEO, Tops Revenue

July 19, 2019

Schlumberger COO Olivier Le Peuch will take over as CEO effective August 1 (Photo: Schlumberger)
Schlumberger COO Olivier Le Peuch will take over as CEO effective August 1 (Photo: Schlumberger)

Schlumberger NV said on Friday Chief Operating Officer Olivier Le Peuch will replace longtime Chief Executive Officer Paal Kibsgaard, as the company looks to shore up its position as a leader in drilling technology.

The world's largest oilfield services provider also reported better-than-expected quarterly revenue, as demand in international markets countered weakness in North America, sending its shares up more than 1% before the bell.

The change of guard comes when the oilfield services industry is buffeted by moderating demand as oil producers cut spending to mollify investors seeking higher returns and efficiency gains are enabling companies to extract more oil with fewer resources.

A veteran who has been with the company for more than three decades, Le Peuch was being groomed as a successor and was in February named the chief operating officer, a role Kibsgaard held before his elevation to the top role in August 2011.

Le Peuch, 55, was part of the teams that drove Schlumberger's purchase of software maker Technoguide in 2002, according to former colleagues, and later acquisitions of two well-completions businesses, and pursued a joint venture with offshore firm Subsea 7.

He will start in his new role in August, when Kibsgaard, 52, will retire. Mark Papa, a current non-independent director, will become non-executive chairman, Schlumberger said.

Schlumberger, an industry bellwether, has benefited from an uptick in activity in international markets since 2018 after a prolonged four-year slump.

International revenue rose 8% to $5.46 billion in the second quarter, while it fell 11% to $2.8 billion in North America.

"These results reflect the normalization in global E&P spend that we were anticipating as international investment increases in response to the accelerating decline in the mature production base, and North America land investment decreases due to E&P operator cash flow constraints," Kibsgaard said in a statement.

Net income rose about 14% to $492 million in the second quarter ended June 30.

Excluding items, the company earned 35 cents per share, in line with analysts' estimate, according to IBES estimates from Refinitiv.

The Houston-based company reported revenue of $8.27 billion, beating estimates of $8.11 billion.


(Reporting by Nishara Karuvalli Pathikkal and Arathy S Nair; Editing by Sriraj Kalluvila)

Categories: People Industry News


Current News

Sinopec Weighs Output Cuts Due to Freight Rate Surge

Sinopec Weighs Output Cuts Due to Freight Rate Surge

Small Scale FSRU: Think Smarter Not Bigger

Small Scale FSRU: Think Smarter Not Bigger

TechnipFMC Wins EPC Contract from PetroVietnam

TechnipFMC Wins EPC Contract from PetroVietnam

BP to Shut West Chirag Platform for Maintenance

BP to Shut West Chirag Platform for Maintenance

Exxon Appoints Bank to Sell Malaysia Assets

Exxon Appoints Bank to Sell Malaysia Assets

Oxy Books Supertanker for a Record $13.25 Mln

Oxy Books Supertanker for a Record $13.25 Mln

Sinopec Resumes Production at Sichuan Gas Processing Unit

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