Schlumberger 3Q Net Jumps 20% on Broad Revenue Growth
Schlumberger (NYSE:SLB) revealed on Friday a 20% jump in its third-quarter profit, as the world’s largest oil field services company saw improved revenue across the board.
Shares of the Houston-based company, which beat Wall Street estimates, were up 2.7% at $93.87 in early morning trading.
Schlumberger’s profit climbed to $1.72 billion, or $1.29 a share, compared to $1.42 billion, or $1.07 a share, in the year-ago period. Revenue increased 11% to $11.61 billion.
Analysts were expecting per-share earnings of $1.24 and revenue of $11.58 billion.
Revenue has been on the rise in recent years, thanks to higher activity in Canada and the deepwater U.S. Gulf of Mexico. In the latest period, overall North America revenue was up 9.1%.
The Europe/Commonwealth of Independent States/Africa segment posted a 6.5% increase in revenue. The Middle East and Asia saw 25% growth, while revenue ticked 4% higher in Latin America.
Operating margins exceeded 20% in all areas, Schlumberger said.
“The international business grew further, with leading margins expanding in spite of some operational delays,” CEO Paal Kibsgaard said. “Performance in North America was particularly strong despite continued pricing weakness in the land market.”
Schlumberger shares were up about 32% year-to-date as of Thursday’s close. Rival Halliburton (NYSE:HAL), which is slated to report earnings on Monday, has soared 49%.