Schlumberger quarterly profit rises as oilfield services demand recovers

10/22/2021 | 07:00am

Oct 22 (Reuters) - Top oilfield firm Schlumberger NV reported a rise in third-quarter adjusted income on Friday, buoyed by higher demand for its services and equipment, as producers capitalize on a rebound in crude prices.

Global oil prices have climbed nearly 64% since the start of 2021 to over $85 a barrel on the back of a vaccine-fueled demand recovery. 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.

"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, Schlumberger Chief Executive Officer Olivier Le Peuch said in a statement, adding he expects those conditions to materially drive investment over the coming years.

Schlumberger reported net income of $550 million, or 39 cents per share, for the quarter, edging past Wall Street estimates of 36 cents each, according to Refinitiv IBES. Revenues of $5.8 billion fell short of analysts expectations of $5.9 billion, but were up 11% year-over-year.

Its shares were down 1.11% in pre-market trading to $33.92. They are up 57.12% year-to-date, outpacing gains in rivals Baker Hughes and Halliburton.

Oilfield earnings have been mixed for the third quarter. Halliburton and Baker Hughes both posted quarterly profit from year-ago losses this week but results were snagged by Hurricane Ida-led disruptions and supply chain woes. (Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)

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