Global oil prices averaged $81.24 a barrel in the January-March quarter, down nearly 20% from a year earlier but still well above a level where oil and gas producers can drill profitably.
Brent futures were trading around $81.50 a barrel on Friday, up half a percent.
“The international and offshore markets continue to experience a strong resurgence of activity driven by resilient long-cycle development and capacity expansion projects,” SLB CEO Olivier Le Peuch said in a statement.
He said a recent decision by OPEC+ producer countries to support commodity prices through an output cut is providing operators with increased confidence.
Revenue in SLB’s international business grew by 29% year-on-year to $5.97 billion, while North American revenue was up 32% over that period to $1.7 billion.
Le Peuch warned the North American land market could see activity plateau in 2023 due to lower natural gas prices and capital restraint by private E&P operators.
SLB shares were flat in pre-market trading at $51.94. They are down about 2.9% year-to-date.
Wall Street analysts generally viewed the results as positive, pointing to the earnings beat.
“SLB continues to see positive pricing as performance differentiates, technology adoption increases, contract terms are adjusted to offset inflation, and service capacity continues to tighten in key international markets,” wrote analysts for Piper Sandler in a note on Friday.
The company reported free cash flow of negative $265 million for the quarter, which analysts for investment firm Cowen said was “below consensus but not unusual” for the first quarter.
The company, formerly called Schlumberger (NYSE:SLB), reported net income, excluding items, of 63 cents per share, for the three months ended March 31, compared with 60 cents expected by analysts, according to Refinitiv data.
Source: Economy - investing.com
