SLB quarterly profit rises, beats estimates on steady international business
SLB warns of limited spending by international producers
Says rate of upstream spending growth has moderated
Quarterly revenue misses estimates, profit beats by 1 cent
Shares down 1.4% in premarket trading
Updates shares in paragraph 6, compares revenue with estimates in paragraph 8, adds background from Liberty in paragraph 10, SLB's outlook in paragraph 11, cost cutting background in paragraph 14
By Arathy Somasekhar and Seher Dareen
Oct 18 (Reuters) -Oilfield services firm SLB's SLB.N third-quarter profit rose 13% and beat analysts' estimates on Friday on steady demand for its equipment and technology in international market and from offshore projects in North America.
However, the company warned of limited spending by international producers in a weak oil price environment.
SLB, which gets 81% of its business from international markets, has been betting on overseas demand in recent quarters to offset weakness in North America.
"This performance was achieved despite an environment where short-cycle activity growth softened, and some international producers exercised cautious spending triggered by lower oil prices and ample global supply, while land activity in the U.S. remained subdued," Chief Executive Officer Olivier Le Peuch said.
Le Peuch also warned that the rate of upstream spending growth has moderated in the last few months as some customers have "adopted a more cautious approach to their near-term capital expenditures and discretionary spending amid lower commodity prices."
SLB shares were down 1.4% to $43.37 in premarket trading.
International revenue grew 12% on the year, the lowest increase in a year, helped by increased sales in Middle Eastern countries including Saudi Arabia, the UAE, Iraq and Kuwait, as well as North Africa, offseting reduced drilling activity in Mexico and Guyana.
North America revenue rose 3% sequentially due to higher activity in the U.S. Gulf of Mexico, partially offset by lower drilling in U.S. land.
Total revenue of $9.16 billion missed estimates of $9.25 billion, according to data compiled by LSEG.
Smaller rival Liberty Energy LBRT.N on Wednesday also warned ofoperator reluctance toaccelerate completions activity ahead ofthe new year, adding theyexpect a low double-digit percentage reduction in North America activityin the next quarter.
SLB reiterated its expectations to grow full-year adjusted margins on earnings before interest, tax, depreciation and amortization at or above 25%.
Net income attributable to SLB, excluding charges and credits, rose 13% to $1.27 billion in the three months ended Sept. 30.
Excluding charges and credits, SLB reported a profit of 89 cents per share for the quarter, compared with an estimate of 88 cents.
Last quarter, the company said it had started a cost cutting program in some parts of the organization, including adjusting resources due to lower North America activity levels, and centralizing some digital delivery services.
Reporting by Seher Dareen in Bengaluru; Editing by Pooja Desai and Louise Heavens
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
