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.
Read the latest issue of Oilfield Technology in full for free: Issue 2 2021
Oilfield Technology’s second issue of 2021 starts with a report from KPMG that examines the outlook for the Scottish oil and gas sector. The rest of the issue is dedicated to articles covering the offshore supply chain industry, offshore asset integrity, expandable liner technology, advances in drilling, data security, flow control, EOR and methane emissions.
Exclusive contributions come from Tata Steel, EM&I Group, 3X Engineering, Enventure Global Technology, Varel Energy Solutions, Adrilltech, Tendeka and more.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23072021/schlumberger-posts-2q21-profit/