SLB beat Wall Street estimates for first-quarter profit on Friday, as elevated crude prices and tight supplies fueled demand for its oilfield services. Global crude prices averaged $81.24 a barrel in the January-March quarter, down nearly 20% from a year earlier but still well above a level where oil and gas producers can drill profitably.
Crude prices surged to multi-year highs last year after Russia's invasion on Ukraine tightened supplies. "The international and offshore markets continue to experience a strong resurgence of activity driven by resilient long-cycle development and capacity expansion projects," SLB CEO Olivier Le Peuch said in a statement.
However, he expects the North American land market could potentially result in an activity plateau in 2023 due to lower gas prices and capital restraint by private E&P operators.
The company, formerly called Schlumberger, reported net income, excluding items, of 63 cents per share, for the three months ended March 31, compared with 60 cents expected by analysts, according to Refinitiv data.
(Reuters - Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)