Schlumberger sees international oil activity ramping up through 2021

Published by Nicholas Woodroof, Editor
Oilfield Technology, Friday, 23 April 2021 16:00

As reported by Reuters, Schlumberger's CEO Olivier Le Peuch has said that the company believes international oil activity should ramp-up through the end of this year and beyond, a shift that will help the company grow revenue outside North America by double-digits in the second half of the year.

Schlumberger, which has been selling assets in North America, said it is benefitting from an inflection in global drilling activity which has picked up as oil prices climbed to US$65.45.

Worldwide, the rig count has risen about 11.5% to 1231 for the quarter ended in March, according to Baker Hughes data.

Schlumberger reported revenue of US$5.2 billion for the quarter, off 30% year-over-year and down 6% sequentially. Excluding the impact of divestitures, its revenue was flat quarter-on-quarter.

The company offered a tepid outlook on growth in North America, which accounted for just 19% of revenue compared with roughly 29% last year.

"With the gradual return of oil demand, we anticipate North America activity to level off at production maintenance levels, while international activity is poised to ramp up through year-end 2021 and beyond," Le Peuch said in a statement.

Last year, Schlumberger sold its North American shale fracking business to rival Liberty Oilfield Services in exchange for a 37% stake in the company.

Net income, excluding charges & credits, was US$299 million, or US$0.21 per share, for the three months ended 31 March, compared with US$309 million, or US$0.22 per share in 4Q20. Analysts had anticipated earnings of US$0.19.

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