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SLB (NYSE:SLB) -1.9% pre-market Friday after reporting mixed Q3 results, topping consensus earnings estimates by a penny while total revenues came in roughly as expected.
Q3 net income rose to $1.12B, or $0.78/share, from $907M, or $0.63/share, in the year-earlier quarter, driven by sustained growth in the international markets, where the company posted its ninth consecutive quarter of double-digit Y/Y growth.
Q3 total revenues rose 11% Y/Y and 3& Q/Q to $8.31B, as International revenue jumped 12% Y/Y and 5% Q/Q to $6.61B, and North America revenue rose 6% Y/Y but fell 6% Q/Q to $1.64B, with reduced drilling activity in the U.S. and the Gulf of Mexico.
By segment, SLB (SLB) said Well Construction revenues rose 11% Y/Y and 2% Q/Q to $3.43B, matching FactSet consensus estimates; Production Systems revenues gained 10% Y/Y and 2% Q/Q to $2.37B, beating $2.36B consensus, and Reservoir Performance revenues jumped 15% Y/Y and 2% Q/Q to $1.68B, which missed expectations of $1.71B.
“We believe the market fundamentals remain very compelling for our business,” CEO Olivier Le Peuch said. “The oil and gas industry continues to benefit from a multiyear growth cycle that has shifted to the international and offshore markets where we are the clear leader.”
