Schlumberger profit jumps as rising oil prices boost demand for drilling

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The exterior of a Schlumberger Corporation building is pictured in West Houston January 16, 2015. REUTERS/Richard Carson/File Photo

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Jan 21 (Reuters) – Schlumberger NV (SLB.N), the world’s largest oil services company, on Friday reported a fourth-quarter profit surge that beat expectations as crude and gas prices rose nature that has stimulated demand for its services and facilities. .

Oil prices jumped around 50% last year and are now trading at seven-year highs on the back of a recovery in demand fueled by the COVID-19 vaccine and tight supplies.

“Absent any further COVID-related disruptions, oil demand is expected to exceed pre-pandemic levels before the end of the year and strengthen further in 2023,” said Schlumberger Chief Executive Olivier. Le Peuch.

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In North America, strong offshore and onshore drilling activity and increased exploration data licenses for the Gulf of Mexico and the Permian Basin in the United States drove a 13% sequential increase in revenue.

Shares of Schlumberger were down 1.58% in premarket trading at $36.46 as Brent oil futures fell about 1.7% on Friday to $86.87 a barrel.

Wall Street analysts said the results were positive except for the company’s decision to keep its dividend stable.

“There was an expectation of an increase in the dividend. I think they will increase the dividend once the leverage targets are met,” said James West, senior managing director of Evercore ISI.

Schlumberger’s fourth-quarter adjusted net income came in at $587 million, or 41 cents per share, above Wall Street estimates of 39 cents per share, according to Refinitiv IBES. The company beat last year’s fourth quarter earnings by $309 million, or 22 cents per share.

Fourth-quarter revenue of $6.23 billion also beat analysts’ forecasts of $6.09 billion.

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The number of platforms worldwide was 1,563 at the end of the fourth quarter, compared to 1,104 in 2020, according to data from Baker Hughes.

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Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren Daniel, Mark Porter and Paul Simao

Our standards: The Thomson Reuters Trust Principles.

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