Energy service giant Schlumberger has recorded a sharp drop in profits despite a continued increase in revenues.
The company’s second-quarter profits were down to $1.6billion, from $2.1billion a year earlier.
But the firm’s revenue was up to $12.05billion from $11.2billion in the previous quarter – an increase of around $800million on the same period in 2013.
The positive figures were driven by “significantly higher” all-round activity, with strongest growth in Europe, The Commonwealth of Independent States (CIS) and Africa, as well as seismic and drilling operations in in the United Arab Emirates and Qatar.
The company benefitted from a number of contract wins, including an estimated $400million five-year deal for the supply of drilling and completion products and services in the Khazzan field development project in Oman.
But that was offset by lower activity onshore North America, Gulf of Mexico and Brazil.
“Strong Schlumberger second-quarter results were driven by significantly higher activity both offshore and in key land markets,” said Paal Kibsgaard, Schlumberger chief executive.
“The overall global economic outlook continues to be mixed as the US recovery from the effects of the unusually harsh winter coupled with a weaker forecast in Brazil, anaemic growth in the Eurozone, and stabilizing GDP in China produce a slightly more cautious short-term GDP growth outlook.
“The fundamentals for a slow and steady recovery, however, remain intact.
“On the other hand, the gap between oil supply and demand is tightening on stronger demand and lower non-OPEC supply leading to narrower spare capacity and consequent support for oil prices that modulate customer spend.
“The opportunities that new technologies offer in response to customer challenges coupled with greater integration will lead to clearly differentiated financial growth that can only be augmented by the gains that increased reliability and efficiency will provide. In this environment, Schlumberger will continue to outperform.”
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