Schlumberger upbeat about international work
Oilfield services company Schlumberger said April 23 an expected recovery in oil demand would lead to a sharp acceleration in international work rather than North America.
Schlumberger reported total revenue in Q1 2021 of $5.2bn, a 6% decline sequentially and a 30% drop yr/yr. By segment, its international operations accounted for 81% of its total revenue during the first quarter of 2021.
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Net income before taxes was $386mn in the first quarter, an 18% decline from Q4, but a stark improvement from the $8bn loss in Q1 2020.
Commenting on North American operations, CEO Olivier Le Peuch said he was upbeat about the revenue derived from inland activity, which turned positive despite the strains from a February freeze in Texas that idled large parts of the regional energy sector. Revenue from offshore North America was down 10% from Q4.
Looking ahead, Le Peuch said the company expected its activity in North America would remain relatively stable, though he was far more optimistic about the opportunities elsewhere.
“Consequently, we are increasingly confident that our international revenue will see double-digit growth in the second half of 2021 as compared to the same period last year, which implies potential upside to the already robust growth that is anticipated in 2022 and beyond,” he said.
On April 21, Schlumberger’s peer Baker Hughes reported total revenue for Q1 at $4.8bn, down 13% from Q4 and 18% lower yr/yr. CEO Lorenzo Simonelli said he was nevertheless cautiously optimistic about the recovery from the Covid-19 pandemic and subsequent return to economic growth.