Schlumberger Sees International Growth in 2019
, a bellwether for the oilfield services sector, said recent volatility in crude prices has led to more uncertainty in the spending outlook for oil and gas producers."Future investments will likely be much closer to a level that can be covered by free cash flow," Chief Executive Officer Paal Kibsgaard said about its U.S. operator customers. He reassured investors that even as operators tighten their purse strings, the company had built 'significant flexibility' into its 2019 operating plan.Revenue from Schlumberger's North America business rose 0.3 percent year over year to $2
Schlumberger Revenue Misses Estimates
, said revenue from its international business dipped 1.4 percent to $5.07 billion. Meanwhile, revenue from North America jumped about 43 percent to $3.14 billion."Despite OPEC's recent decision to increase production, the global supply base continues to weaken," Chief Executive Officer Paal Kibsgaard said, pointing to uncertainty for producers and service providers due to sanctions on Iran, falling production from Venezuela and outages in Libya.The world's largest oilfield services company posted net income attributable of $430 million, or 31 cents per share, in the second quarter ended
Schlumberger expects reactivation costs to squeeze margins
bringing most oilfield fleets online comes at a cost, including expenses involved with repair and upkeep, and re-hiring of employees to man the equipment. "We will have some headwinds around one-time reactivation cost in the coming quarters," Schlumberger's Chief Executive Officer Paal Kibsgaard said on a post-earnings conference call. The world's No.1 oilfield services provider said its cost of revenue increased 11.3 percent to $6.08 billion in the quarter ended March 31, outpacing a 5.7 percent rise in revenue. The company's pre-tax operating margin fell to 11 percent
Schlumberger Seeing Early Signs of Recovery
on global drilling activity. The company, which derives more than three-fourths of its revenue from international operations, had called the bottom of the cycle in the second quarter. "The only place where we don't see any signs of recovery at this stage is in Asia", Chief Executive Paal Kibsgaard said on a post-earnings call on Friday. The company reported a quarterly profit that topped analysts' expectations on Thursday, helped by cost cuts and a ramp up in drilling activity in North America. Schlumberger said it expects "solid growth" in the Middle East and Russia in
Oil Industry Suppliers See Light at the End of the Tunnel
, the world's biggest oilfield services provider, said last week it was considering rolling back pricing concessions negotiated with oil firms, in a sign of confidence in future demand. "In spite of the continuing headwinds we now appear to have reached the bottom of the cycle," CEO Paal Kibsgaard said when he presented results last week. PGS, which maps the seabed for oil and gas deposits, sees higher activity and spending by oil companies next year and that 2016 would be the low point in the cycle. "We see early signs of a stabilising market and improving sentiment,"
February 2024
