Oilfield services giant SLB beats first-quarter profit estimates

Oilfield services giant SLB beats first-quarter profit estimates

FILE PHOTO: The new logo of SLB is seen in this undated handout image obtained by Reuters on October 19, 2022. SLB/Handout via REUTERS


(Reuters) -SLB beat Wall Street estimates for first-quarter profit on Friday, as elevated crude prices and tight supplies fueled demand for its oilfield services.

Global crude 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.

Crude prices surged to multi-year highs last year after Russia’s invasion on Ukraine tightened supplies.

“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.

However, he expects the North American land market could potentially result in an activity plateau in 2023 due to lower gas prices and capital restraint by private E&P operators.

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.


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