Schlumberger falls short of revenue estimates in Q3 despite elevated oil prices

Schlumberger NV (NYSE: SLB) is in the red this morning after coming in marginally short of revenue estimates for its fiscal third quarter.

Schlumberger performed better internationally

The results disappointed investors particularly because oil services companies typically tend to do well when oil prices are in an uptrend.

Schlumberger said its international operations performed significantly better than North America in the recently concluded quarter. Income from the former was up 12% in Q3 versus 6.0% for the latter. According to Olivier Le Peuch – its Chief Executive:

The oil and gas industry continues to benefit from a multi-year growth cycle that has shifted to the international and offshore markets where we are the clear leader.

Shares of the world’s largest offshore drilling company are up 35% versus their year-to-date low at writing.

War in the Middle East could send #oil prices soaring to $140 a barrel and bring the world to the brink of #recession – Allianz Trade

There is currently a 20% chance that a sharp rise in oil prices will occur, according to analysts #Brent crude oil prices are above $93 a… pic.twitter.com/VPx6hzPbDQ

— Multipolar Market (@MultiPolarMarkt) October 20, 2023

Notable figures in Schlumberger Q3 earnings

• Earned $1.12 billion versus the year-ago $907 million
• Per-share earnings also climbed from 63 cents to 78 cents
• Adjusted EPS printed at 78 cents as per the press release
• Revenue jumped 11.1% year-on-year to $8.31 billion
• Consensus was 77 cents a share on $8.32 billion revenue

Other notable figures in the earnings report include an 11% annualised growth in well construction revenue, 10% in production systems revenue, and 15% in reservoir performance revenue. CEO Le Peuch also said today in the press release:

Upstream spending is accelerating as operators continue to invest in long-cycle developments, production capacity expansion, exploration and appraisal, and enhanced gas production.