Oilfield firm SLB beats Wall St. estimates for fourth-quarter profit

Oilfield firm SLB beats Wall St. estimates for fourth-quarter profit

(Reuters) – SLB beat Wall Street estimates for fourth-quarter profit on Friday, driven by strong demand for drilling services and equipment from operators as oil and gas prices remained elevated amid tight supplies.

SLB had benefited from increased oil drilling and production activity in North America last year. The top oilfield services firm said revenue from North America rose 27% to $1.63 billion in the reported quarter.

Average North America rig count, an early indicator of future output, for Oct-Dec 2022 quarter, rose to 965 from 720 a year earlier, according to data from Baker Hughes. Average international rig count for the quarter stood at 1,872, nearly 22% higher from the previous year.

“Looking ahead, we believe the macro backdrop and market fundamentals that underpin a strong multi-year upcycle for energy remain very compelling in oil and gas and in low-carbon energy resource,” Olivier Le Peuch, SLBs Chief Executive Officer, said.

Formerly called Schlumberger, the top oilfield services firm‘s net income excluding items stood at $1.03 billion, or 71 cents per share, for the three months ended Dec. 31, compared with analysts’ estimate of 68 cents per share, according to Refinitiv data.