Middle East

Schlumberger’s profits rise as oil prices rise

January 21, 2022

Illustration-Credit: Lukas Z / Adob ​​eStock

Schlumberger NV, the world’s largest oilfield services company, reported on Friday that profits increased in the fourth quarter. This is because rising oil and gas prices have boosted demand for services and equipment.

Oil prices soared about 50% last year and are currently trading at their highest prices in seven years, backed by a recovery in demand from vaccines and tight market supply.

“Without further turmoil associated with COVID, oil demand is expected to exceed pre-pandemic levels by the end of the year and further increase in 2023,” said Olivier Le Pouf, Schlumberger CEO. “.

In North America, strong offshore and land drilling activities and increased exploration data licenses in the US Gulf of Mexico and the Permian Basin led to a continuous 13% increase in revenue.

Equities were almost flat in pre-market trading at $ 37.13. Brent crude oil futures fell about 1.7% on Friday to $ 86.87 a barrel.

According to Refinitiv IBES, Schlumberger’s adjusted net income for the fourth quarter rose to $ 587 million, or 41 cents per share, above Wall Street’s estimate of 39 cents per share. The company outperformed last year’s $ 309 million, or 22 cents per share. Fourth-quarter sales were $ 6.23 billion, exceeding analysts’ forecast of $ 6.09 billion.

According to Baker Hughes data, the number of rigs in the world at the end of the fourth quarter was 1,563, but by 2020 it was 1,104.

(Report by Arunima Kumar in Bangalore, edited by Amy Caren Daniel and Mark Porter)

https://www.oedigital.com/news/493700-schlumberger-profit-rises-as-higher-oil-prices-drive-drilling-services-demand Schlumberger’s profits rise as oil prices rise

Back to top button