Page 10 - NorthAmOil Week 04 2022

NorthAmOil PERFORMANCE NorthAmOil

Oilfield services giants bullish

on fourth-quarter results

GLOBAL THE three leading US-based oilfield services capital investment would be $1.9-2.0bn in 2022,
firms – Schlumberger, Halliburton and Baker up from just under $1.7bn in 2021. The com-
Hughes – have unveiled their results for the pany is planning to increase spending in North
fourth quarter of 2021. America by at least 20%.
Overall the firms posted strong perfor- “Absent any further COVID-related disrup-
mances, bolstered by higher crude prices and tion, oil demand is expected to exceed pre-pan-
beating analyst expectations on various counts. demic levels before the end of the year and to
Company executives said they were optimistic further strengthen in 2023,” he stated in the
for the coming year. company’s earnings release. “These favourable
market conditions are strikingly similar to those
Schlumberger experienced during the last industry supercycle,
Schlumberger, the world’s largest oilfield ser- suggesting that resurgent global demand-led
These favourable vices provider, reported net income of $587mn, capital spending will result in an exceptional
or $0.41 per share, for the fourth quarter. The multi-year growth cycle.”
market conditions result marked an increase of 90% on net income
are strikingly of $309mn in the same quarter of 2020 and also Halliburton
came in above analyst expectations of $0.39 per For its part, second-largest oilfield services player
similar to those share, as cited by Refinitiv IBES. Halliburton posted net income of $824mn,
The company’s fourth-quarter revenue of or $0.92 per share, up from net income of
experienced $6.23bn also topped analysts’ projections of $236mn, or $0.26 per share in the third quarter
$6.09bn and marked a 13% year-on-year gain of 2021. Additionally, the company doubled its
during the compared with $5.53bn in the same quarter of fourth-quarter adjusted profit y/y from $160mn,

last industry 2020. or $0.18 per share, a year ago to $320mn, or $0.36
“The fourth quarter was characterised by per share. This beat analyst expectations cited by
supercycle. broad-based activity growth,” Schlumberger’s Refinitiv IBES of $0.34 per share.
Halliburton’s revenue for the fourth quarter
CEO, Olivier Le Peuch, said on the company’s
Olivier Le Peuch earnings call, “with continued momentum reached $4.28bn, up from $3.24bn a year ago.
CEO in North America, activity acceleration in the For the whole of 2021, the company posted
Schlumberger international markets and an accretive offshore net income of $1.46bn, recovering from a loss
market contribution, upon which we deliv- of $2.95bn in 2020, and revenue of $15.30bn, up
ered strong sequential revenue growth, our 6% from $14.45bn the previous year.
sixth consecutive quarter of margin expansion In a demonstration of its confidence in the
and outstanding double-digit free cash flow current operating environment, Halliburton
generation.” said it was raising its dividend to $0.12 from
Looking ahead, Le Peuch said Schlumberger’s March 23, compared with $0.045 previously.

P10 www. NEWSBASE .com Week 04 27•January•2022