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Schlumberger posts 2Q21 profit

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Oilfield Technology,

As reported by Reuters, Schlumberger issued a bullish forecast for 2021 on Friday as its 2Q21 profit topped estimates due to surging margins, with a rebound in oil prices boosting demand for its software and equipment.

The company gave an optimistic outlook for the rest of the year.

It forecast international revenue would rise at a double-digit percentage rate compared with year-ago levels. Its North American business, which fell 1% versus a year ago, could "surprise to the upside" due to spending by private operators, Chief Executive Olivier Le Peuch said.

"Industry projections of oil demand reflect the anticipation of a wider vaccine-enabled recovery, improving road mobility, and the impact of various economic stimulus programs," Le Peuch said, cautioning the COVID-19 pandemic continues to threaten the demand recovery.

Schlumberger reported net income of US$431 million, or US$0.30 cents per share, for the three months to June 30, compared with US$299 million, or US$0.21 cents per share, in the first quarter. Wall Street analysts had anticipated earnings of US$0.26 cents per share, according to Refinitiv IBES.

Operating margins nearly doubled to 14.3%, the highest since 2018, led by big gains in its software and reservoir performance units. Gains reflected past cost-cutting and big year-over-year software revenue increases.

In terms of global oilfield activity, there are 1325 active rigs, up 63 from the start of the year, but far below the 2073 that were working at the start of 2020, according to data from Baker Hughes.

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