SLB and Halliburton Co., two of the world’s biggest oil field service providers, said they see strong international demand for crude drilling after posting earnings that met or beat forecasts, supporting their shift into overseas markets. SLB posted second-quarter earnings of 85 cents a share, excluding certain items, it said Friday in a statement. The results topped analysts’ predictions. Halliburton reported earnings of 80 cents a share, matching expectations.
“Looking ahead to the second half of the year, we expect ongoing momentum in the international markets,” SLB Chief Executive Officer Olivier Le Peuch said in the statement. “Beyond 2024, the fundamentals of this cycle remain in place,” he added. “There is a long tailwind of growth opportunities, including long-cycle gas and deepwater projects, production and recovery activity, and the secular trends of digital and decarbonization.”
Major oil field service companies are pivoting to more work in international and offshore fields amid a slowdown in U.S. shale activity brought on by industry consolidation, low natural gas prices and pressure to keep spending muted and return profits to shareholders. While Halliburton met earnings expectations, its sales of $5.8 billion were lower than analysts expected. The biggest oil-services provider in North America posted revenue in the U.S. and Canada of $2.5 billion, marking its fourth consecutive quarter of lower sales compared to the previous year. Shares of SLB rose 0.4% in New York, while Halliburton dropped as much as 7.5%, the most since May 2023.
SLB is seen as a bellwether for the oil and gas industry, with its global footprint providing an insight into the financial health of the energy sector. Halliburton typically offers the closest proxy to activity in the U.S. shale sector. Halliburton’s international sales are forecast to grow 10% this year, Chief Executive Officer Jeff Miller told analysts and investors Friday on a conference call. That’s less than the 11% expansion that analysts are expecting for 2024. The company said that North America sales are expected to drop in a range of 6% to 8% this year due to lower customer activity.
Source: worldoil.com