The oilfield services firm, SLB, has announced an income before tax of $1.39 billion in its third-quarter results.
The firm formerly known as Schlumberger posted in its Q3 results on Friday adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of just over $2 billion, a 6% increase from the previous quarter and an 18% year-on-year uptick.
Across the board, SLB saw an 11% year-on-year revenue growth as it reported $8 billion for the whole company.
However, revenues from North America were down 6% as other regions such as Latin America, Europe and Africa, and the Middle East and Asia all experienced growth.
The Europe and Africa region reported revenues of $2 billion with a 3% sequential and year-on-year increase.
Chief executive of SLB, Olivier Le Peuch, commented on the reports: “Looking ahead, we believe the market fundamentals remain very compelling for our business.
“The oil and gas industry continues to benefit from a multiyear growth cycle that has shifted to the international and offshore markets where we are the clear leader.
“Concurrently, upstream spending is accelerating as operators continue to invest in long-cycle developments, production capacity expansions, exploration and appraisal, and enhanced gas production.
“The long-term nature of these global investments underscores the breadth, durability, and resilience of this cycle, and we expect these market dynamics to continue to drive profitable growth in the years ahead.”
Dividend payments and further share buybacks
During the quarter, the company repurchased 2.6 million shares of its common stock at an average price of $57.46 per share.
This led to a total purchase price of $151 million.
On Thursday, SLB’s board of directors approved a quarterly cash dividend of $0.25 per share of outstanding common stock.
This will be payable on 11 January 2024, to stockholders of record on 6 December 2023.
Mr Le Peuch added: “Compared to the same quarter a year ago, international revenue grew 12%, outpacing North America, which increased 6%. Year on year, global third-quarter revenue grew 11% and pretax segment operating margin expanded 153 basis points (bps) to 20%.
“We have also increased our year-on-year pretax segment operating margin for the 11th consecutive quarter.
“I am very pleased with these results, which demonstrate how SLB is continuing to seize this multiyear growth cycle.
“Our differentiated technology and service offerings, combined with our focus on the quality of our revenue, enabled profitable growth and drove our adjusted EBITDA margin to a new cycle high of 25%.”
‘Subsea Alliance’
Earlier this year SLB signed an agreement with Subsea 7 and UK supermajor BP to form a “Subsea Alliance”.
The aim of this was to strengthen the firms’ global underwater projects.
SLB (NYSE: SLB) and Subsea 7 (OSLO: SUBC) first put their “subsea integration alliance” in place in 2015, which was renewed in 2022 for a further seven years after a run of global wins.
BP (LON: BP) signed a memorandum of understanding with the pair last month in an “innovative commercial model” to enhance projects from concept selection through the entire life cycle.
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