Schlumberger continues string of rising profits

Schlumberger on Friday joined oilfield services heavyweights Halliburton and Baker Hughes in posting a third-quarter profit as the industry rebounds from the pandemic-driven oil bust.

The Houston- and Paris-based company said it made a $550 million profit in the three months ended Sept. 30, compared with an $82 million loss a year earlier. It follows the company’s $431 million profit in the second quarter and a $299 million profit in the first quarter. Revenue grew by 11 percent to $5.8 billion from nearly $5.3 billion a year earlier.

The oil industry has shown signs of strengthening in recent weeks, CEO Olivier Le Peuch said, with demand and crude prices rising and stockpiles falling.

“Absent a recession or pandemic-related setback, these favorable conditions are expected to materially drive investment over the next few years — particularly internationally,” he said, “and result in exceptional multiyear capital spending growth globally, both on land and offshore.”

Schlumberger employs about 86,000 around the world, with almost 25 percent of them in North America.

Halliburton, Schlumberger and Baker Hughes are benefiting from a recent upswing in drilling in North America as business activity and travel pick up. Crude prices have climbed steadily this year, recently topping $80 a barrel, up from less than $48 a barrel in January. The U.S. benchmark, West Texas Intermediate, settled $1.26 higher on Friday at $83.76.

Drillers, meanwhile, have added 255 rigs over the past year, for a total of 542 in the U.S., according to oilfield services company Baker Hughes. The weekly tally declined Friday, falling by 1 and ending a six-week streak of gains.

The growing rig count has helped Schlumberger’s North American revenue rise by 9 percent over the past year to $1.1 billion, while international revenue increased by 11 percent to $4.7 billion. Revenue from the company’s digital and production systems were flat.

Schlumberger’s board of directors on Thursday approved a quarterly dividend of 12.5 cents per share, reflecting confidence in its future performance and the industry’s focus on returning cash to shareholders.

“Looking ahead, we anticipate another quarter of growth, and expect to close 2021 with strong momentum that will set the foundation for an exceptional growth cycle,” Le Peuch said.

Shares in Schlumberger closed lower by about 1.1 percent Friday at $33.94.