Schlumberger profit rises on cost cuts, oil demand recovery
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Schlumberger profit rises on cost cuts, oil demand recovery
Jan 22 (Reuters) - Schlumberger NV's SLB.N fourth-quarter revenue and adjusted profit grew compared to the previous quarter, aided by cost cuts and a recovery in demand for oilfield services and equipment after a pandemic-driven slump in drilling.
Easing COVID-related restrictions has helped reverse the decline in oil demand and prices, which remain steady since a late-2020 rebound from historic lows. Brent crude LCOc1, which averaged at $45 per barrel in the last quarter of 2020, hovered around $55 on Friday.
Like its rivals Halliburton Co HAL.N and Baker Hughes Co BKR.N noted earlier this week, Schlumberger Chief Executive Officer Olivier Le Peuch said on Friday he was optimistic about demand recovery through this year, giving investors hope that the oil downturn is nearing an end.
Le Peuch added that the stage is set for oil demand to recover to 2019 levels by 2023 or even earlier as some analysts have noted.
Schlumberger posted total fourth quarter revenue of $5.53 billion, 5.2% above the third quarter and its first quarter-over quarter increase since the third quarter of 2019.
The world's largest oilfield services provider on Friday reported net income excluding charges and credits of $309 million, or 22 cents per share, in the fourth quarter ended Dec. 31, compared with an income of $228 million, or 16 cents, in the prior quarter.