Oilfield services giant SLB (NYSE: SLB), which has several bases in and around Aberdeen, raked in pre-tax profits of $2.5 billion during the first half of 2023.
A hefty bump on the $1.8bn posted for H1 2022, these latest financials mark a period of “significant growth” for the US group, particularly in international markets.
Revenue for the first six months of 2023 was $15.8bn, up from $12.7bn last year, as the company, formerly called Schlumberger, benefitted from the bounce back in oil and gas prices.
As a result the board of Houston-headquartered SLB – which recently announced it would be stopping all shipments to Russia – have approved a quarterly cash dividend of $0.25c per share, payable on October 12.
Group chief executive Olivier Le Peuch said: “I am very pleased with our second-quarter results, which reflect significant growth in the international markets, particularly in the Middle East & Asia, and offshore.
“North America revenue also grew sequentially benefiting from our agility across the most resilient basins and market segments, although the rig count in the area declined. As the upcycle continues to unfold, we are excited about the opportunities for our business, with international- and offshore-led growth fueling strong pretax segment operating margin expansion and cash flows as highlighted in this quarter’s results.
“We are very well positioned in these markets, as international represents nearly 80% of our global revenue, and offshore constitutes approximately half of that. Both sequentially and year on year, we saw broad international revenue growth that resulted in margins expanding across all Divisions and geographical areas.”
North Sea contract win with BP
SLB also used its half year results to list its quarterly highlights, which featured a contract with energy giant BP for work in the North Sea.
The supermajor handed OneSubsea – an alliance between SLB and Subsea 7 – a deal for the supply of subsea dual-bore trees.
It forms part of BP’s ongoing infill drilling program at the Schiehallion and Loyal fields West of Shetland.
© Supplied by BPA host of other contract wind, with the likes of Wintershall Dea, Saudi Aramco and Petrobras, were listed, for work offshore various countries, including Brazil, Egypt and Mexico.
Forecasting a positive future
And things are expected to go from good to great for SLB, with the firm projecting offshore spend to increase by 20% in 2023 as exploration enjoys a renaissance across the globe.
Mr Le Peuch added: “We continue to see positive upstream investment momentum in the international and offshore markets. These markets are being driven by resilient long-cycle offshore developments, production capacity expansions, the return of global exploration and appraisal, and the recognition of gas as a critical fuel source for energy security and the energy transition.
“This is resulting in a significant baseload of activity as you can see from the number of contract awards in our quarterly highlights. The nature of these awards displays the duration and magnitude of this upcycle, both on land and offshore. We remain proud to be the partner of choice for our customers.
“As international spending builds further momentum in the second half of 2023 and North America moderates as anticipated, this cycle continues to align closely with SLB’s strengths, affirming our confidence in our full-year financial ambitions.
“This is a compelling environment for our industry, and SLB is a disciplined and efficient company that is moving in sync with our customers and our shareholders. We believe we are well positioned to execute our returns-focused strategy and commitment to shareholder returns.”
