Page 10 - NorthAmOil Week 30 2022

NorthAmOil PERFORMANCE NorthAmOil

Schlumberger beats Q2 expectations

SERVICES OILFIELD services giant Schlumberger said last continues to monitor the situation closely.
week that it had more than doubled its net profit “The second quarter marked a significant
for the second quarter of 2022. The company inflection point for Schlumberger with a strong
posted a net profit of $959mn for the latest quar- acceleration of revenue and earnings growth,”
ter, beating analyst expectations. commented Schlumberger’s CEO, Olivier Le
This represented a 123% increase on a profit Peuch.
of $431mn in the second quarter of 2021 and an “Growth was broad-based, driven by an
88% rise sequentially on a profit of $510mn in increase in activity internationally, in North
the first quarter of this year. America and across all divisions. The quarter
Schlumberger’s revenue reached $6.8bn, up was also characterised by a favourable mix of
20% year on year on $5.6bn and 14% sequentially exploration and offshore activity and the increas-
on $6.0bn in the first quarter of 2022. It saw its ing impact of improved pricing, resulting in the
international revenue grow 15% y/y from $4.5bn largest sequential quarterly growth since 2010.”
to $5.2bn and its North American revenue rise In part as a result of its better-than-expected
42% y/y from $1.1bn to $1.5bn. performance in the latest quarter, Schlumberger
The results were attributed to increased drill- raised its revenue forecast for the whole of 2022
ing and strong oil prices, among other factors. to $27bn.
And the company’s revenue growth came despite “We expect this higher revenue to result in
a drop in revenue from operations in Russia in earnings that exceed our previous expectations,
the wake of the war in Ukraine. given our ambition to exit the year with adjusted
The company has suspended new investment EBITDA [earnings before interest, taxes, depre-
and technology deployment into Russia and says ciation and amortisation] margins 200 basis
that while it can currently operate in the country points higher than in the fourth quarter of 2021,”
in full compliance with international sanctions, it said Le Peuch.™

POLICY

Ottawa may give O&G firms more

time to meet emissions targets

CANADA THE Canadian government may consider giv- net-zero emissions by 2050. However, the oil and
ing the oil and gas industry more time to meet gas industry has expressed concern over its abil-
federal 2030 greenhouse gas (GHG) emis- ity to cut emissions by this amount within the
sions-cutting targets. required timeframe.
In an interview with CBC Radio, Canadian The industry produced about 191mn tonnes
Minister of Environment and Climate Change of emissions in 2019, which accounted for 26% of
Steven Guilbeault said some of the deep emis- Canada’s total emissions. Under current federal
sions reductions required could take more time targets this would be brought down to 110mn
to be achieved. tonnes by 2030. Doubts have been expressed
“I’m not saying today it’s necessarily going to over whether the country could still meet its
be 2032, but the companies have said it could be nationwide 2030 target if oil and gas producers
10 years, which would bring us to 2032,” he said. take longer to cut their emissions to this level.
“There’s a possibility that if the industry needs a The Pathways Alliance, a group that includes
bit more time, then we can provide some flexi- six companies representing 95% of Canada’s oil
bility while ensuring that Canada still meets its sands production, has said it is working to reduce
2030 goals, that we can allow the industry a bit its emissions by 22mn tonnes by 2030.
more time if they need this time to deploy the The Pathways Alliance’s vice president of
necessary infrastructure that they need to reduce external relations, Mark Cameron, told CBC
emissions.” News that by 2032, another 2-3mn tonnes of
Under the government’s climate plan, all sec- emissions cuts might be possible. This would still
tors currently need to cut emissions by 40-45% not go far enough towards meeting the federal
below 2005 levels by 2030 as Canada aims to hit target.™

P10 www. NEWSBASE .com Week 30 31•July•2022