Schlumberger reported its third quarter earnings declined 1% from the second quarter and 2% from a year earlier.
Worldwide revenue was $5.3 billion while international revenue totaled $4.1 billion. Revenue in North America was $1.2 billion and fell 2% from a year ago.
Schlumberger CEO Olivier Le Peuch said it showed notable progress in the reset of the company’s earnings power.
“In North America, we have exhibited capital discipline, and are high-grading and rationalizing our portfolio, with a focus on reduced volatility of earnings and less capital-intensive businesses as demonstrated by two key milestones we achieved during the quarter. The first is the agreement to combine our OneStim® pressure pumping business with Liberty Oilfield Services Inc. The second is an agreement to divest our low-flow artificial lift business in a cash transaction,” he said.
Le Peuch took note of the rig count decline during the quarter, saying, “We have experienced significant new technology uptake, achieved new performance benchmarks for our customers, and captured higher performance incentives on multiple projects. In addition, our international business continues to generate resilient, accretive margins and significant free cash flow.”
The company expects its international revenue to represent more than 80% of its consolidated revenue after the close of the two North America transactions which is an increase from the average of nearly 65% over the past decade.
“In North America land, increased completions activity on drilled but uncompleted (DUC) wells was offset by reduced drilling in US land. North America offshore was affected by reduced rig activity, lower multiclient seismic license sales, and hurricane disruption,” added Le Peuch.
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Source: Business Wire