SLB and Halliburton, two of the world’s leading oilfield service providers, reported strong international demand for crude drilling after posting earnings that met or exceeded expectations, supporting their shift into overseas markets.
SLB announced second-quarter earnings of 85 cents a share, excluding certain items, surpassing analysts’ expectations, according to a Friday statement. 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,” said SLB CEO Olivier Le Peuch. He added that beyond 2024, growth opportunities remain robust, driven by long-cycle gas and deepwater projects, production and recovery activity, and trends in digitalization and decarbonization.
Major oilfield service companies are pivoting to international and offshore fields due to a slowdown in US shale activity, caused by industry consolidation, low natural gas prices, and pressure to maintain spending and return profits to shareholders.
While Halliburton met earnings expectations, its sales of $5.8 billion were lower than analysts anticipated. The company posted US and Canada sales of $2.5 billion, marking the fourth consecutive quarter of lower revenue compared to the previous year, the longest stretch of revenue declines since late 2018 through early 2021.
SLB, or Schlumberger, is considered a bellwether for the oil and gas industry, with its global presence providing insight into the sector’s financial health. Halliburton is seen as the closest proxy to US shale activity.
“In our international markets, we see strong demand for Halliburton’s services, high activity levels, and equipment tightness across all major basins,” said Halliburton CEO Jeff Miller.
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