Service Giant Schlumberger Up in 3Q

Global oilfield services giant Schlumberger reported 3Q 2018 pre-tax operating income of $1.15bn on October 19, a 5% improvement sequentially and 9% higher year-on-year.

The quarterly improvement continued the company’s recovery from a $2.6bn loss in 4Q 2017.

“Our third-quarter revenue of $8.5bn grew 2% sequentially, driven by the international areas where the broad-based activity recovery continued and where sequential revenue growth outpaced that of North America for the first time since the second quarter of 2014,” CEO Paal Kibsgaard said. “In North America, sequential growth remained positive but slowed from the rates of previous quarters as takeaway constraints in the Permian impacted hydraulic fracturing activity.”

North American revenue in 3Q rose 2% sequentially, to $3.19bn, but was 23% higher year-on-year, helped by robust performance from the vertically integrated sand business, which now also competes in third-party fracking markets.

International areas revenue increased to $5.2bn, 3% higher than 2Q 2019 but only 1% higher year-on-year. Sequential growth, Kibsgaard said, was driven largely by 7% growth in Latin America and 3% growth in the Middle East and Asia on the strength of higher activity by both independents and national oil companies in both regions.