Page 9 - NorthAmOil Week 30 2021

NorthAmOil PERFORMANCE NorthAmOil

Schlumberger
anticipates that North
American growth rates
will moderate in the
second half of the year.

Schlumberger’s second-

quarter beats expectations

GLOBAL SCHLUMBERGER, the world’s largest oilfield Schlumberger’s operating margins nearly
services company, exceeded analyst expectations doubled to 14.3%, which was the highest
with its results for the second quarter of 2021. level since 2018, led by particularly signifi-
The oilfield services giant posted a sec- cant gains in its digital and integration unit.
ond-quarter net income of $431mn, or $0.30 per This marked the fourth consecutive quarter of
share, up from $299mn, or $0.21 per share, in margin expansion, and was attributed to past
the first quarter of 2021. According to Refinitiv cost-cutting efforts, as well as y/y software rev-
IBES data cited by Reuters, analysts had expected enue increases.
Schlumberger to achieve earnings of $0.26 per Despite concerns over the future impact of
share in the second quarter. the Delta variant of the coronavirus (COVID-
On a year-on-year basis, the company’s earn- 19) pandemic, Schlumberger officials expressed
ings also improved, from net income of $69mn confidence about the company’s performance
a year ago. over the remainder of the year.
“Our second-quarter results demonstrate the “While the rise of the COVID-19 Delta
broad strength of our portfolio, the extent of our variant and resurgence of related disruptions The oilfield
market participation – both in North America could impact the pace of economic reopening,
and internationally – and our enhanced ability industry projections of oil demand reflect the services giant
to capture and translate activity growth into sus- anticipation of a wider vaccine-enabled recov-
tained margin expansion and strong free cash ery, improving road mobility, and the impact of posted a
flow [FCF],” commented Schlumberger’s CEO, various economic stimulus programmes,” said
Olivier Le Peuch. Le Peuch. “Under this scenario, we believe the second-quarter
The company reported second-quarter rev- momentum of international activity growth net income of
enue of $5.6bn, up 8% sequentially from $5.2bn that we experienced in the second quarter will
in the first quarter of this year and 5% y/y from continue as the cyclical recovery unfolds. This $431mn, or
$5.4bn in the second quarter of 2020. Both view is supported by rig count trends, capital
Schlumberger’s North American and interna- spending signals and customer feedback. In $0.30 per share.
tional revenue grew sequentially, and interna- North America, we anticipate the growth rate to
tional revenue also rose y/y, but North American moderate; however, drilling activity could still
revenue came in 1% below year-ago levels as US surprise to the upside due to private E&P oper-
producers continued to exercise capital disci- ator spending.”
pline despite stronger oil prices. Schlumberger anticipates that its interna-
On a global basis, all four company divisions tional revenue will continue growing in the
– digital and integration, reservoir performance, second half of 2021 by double-digits when com-
well construction and production systems – pared to the second half of last year, barring any
reported growth in the second quarter. Indeed, pandemic-related setback to the recovery. This is
this was the highest sequential quarterly revenue expected to translate into full-year international
growth rate since the second quarter of 2017. revenue growth for 2021.™

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