Schlumberger revenue up 13% in Q4

Global oilfield services provider Schlumberger on January 21 reported a 13% year/year uptick in its Q4 revenue to $6.22bn, which was also up 6% quarter/quarter.

An increase in digital sales, stronger activity and free cash flow performance delivered another quarter of improved financial results to close the year, Schlumberger said. The company also cited early pricing improvements and new technology adoption.

Schlumberger's operating income was up 51% year/year at $986mn. Adjusted EBITDA was up 24% at $1.3bn, while free cash flow surged to $3.0bn.

The sequential revenue increase was led by growth in Europe, Africa and the CIS region, due to strong offshore activity in Africa and new projects in Europe.  In North America, revenue grew 13% sequentially to $1.28bn, outperforming the rig count growth. Sequential growth was driven by strong offshore and land drilling activity and increased exploration data licensing in the US Gulf of Mexico and the Permian.

“Looking ahead into 2022, the industry macro fundamentals are very favourable, due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices. We believe this will result in a material step-up in industry capital spending with simultaneous double-digit growth in international and North American markets,” CEO Olivier Le Peuch said.

Absent any further COVID-related disruption, the company expects oil demand to exceed pre-pandemic levels before the end of the year and to further strengthen in 2023.