North America revenue climbs 36% as Middle East disruptions persist
SLB on Friday reported a second-quarter profit of $786 million, or 52 cents a share, down from $1.01 billion, or 74 cents a share, in the same period a year earlier. After stripping out certain one-time items, adjusted earnings were 55 cents a share, ahead of the 51 cents that analysts polled by FactSet had expected.
Revenue rose 5% to $8.97 billion, exceeding the $8.67 billion Wall Street models had projected.
North America revenue jumped nearly 36% to $2.24 billion, fueled by higher offshore activity, a rebound in U.S. unconventionals and increased sales of production systems. International revenue slipped 2.6% to $6.67 billion, reflecting continued disruptions across the Middle East.
Le Peuch said offshore activity in Latin America, Europe, Africa and Asia helped offset the decline in the Middle East. “Excluding the Middle East, revenue grew sequentially across all divisions, supported by higher offshore activity, a rebound in U.S. unconventionals and strong demand for production and recovery solutions,” he said.
SLB’s data-center-solutions business continued to grow at a quick clip, driven by rising demand and customer expansion, according to Le Peuch. The unit, which is on track to exceed $1 billion in annualized revenue run rate by the end of the year, is also widening its scope, adding offerings such as engineering and design.
Shares climbed 3.9% to $49.05 in premarket trading following the earnings release.