Top oilfield service firms SLB (formerly Schlumberger) and Halliburton reported higher quarterly profits, driven by strong demand from international customers for their drilling equipment and services. The surge in offshore exploration and production, particularly in the Middle East and Asia, has increased the need for oilfield services such as well completions.
For the quarter ending June 30, SLB’s net income rose 19% to $1.2 billion (85 cents per share), surpassing Wall Street’s consensus estimate of 83 cents. Halliburton’s profits also increased by 16.2% to $709 million (80 cents per share), aligning with estimates.
SLB’s revenues climbed 13% to $9.1 billion, exceeding expectations, while Halliburton’s revenues rose slightly by 0.6% to $5.83 billion, missing consensus views. The revenue growth was bolstered by activities in the Middle East and Asia, particularly in gas development projects and deepwater basin investments across Latin America, Europe, Africa, and the U.S. Gulf of Mexico.
Looking ahead, SLB’s CEO Olivier Le Peuch expressed optimism about continued momentum in international markets, strong digital sales, and cost efficiency programs that are expected to enhance margins and achieve mid-teen growth in full-year adjusted EBITDA.
While SLB’s international revenue increased by 18% year-over-year, Halliburton’s international revenue grew by about 8%. However, both companies faced challenges in North America, with SLB reporting a 6% decline in revenue due to lower onshore drilling activity and Halliburton experiencing an 8% drop from reduced pressure pumping operations.