Schlumberger records rise in profits as high crude prices fuel demand

Oilfield services giant Schlumberger posted on Friday a healthy hike in its fourth-quarter profit, as higher crude prices boosted demand for the company’s contracts with global oil producers.

Schlumberger said in a statement on Friday its net income for the quarter ending on December 31, 2021 rose to US $601 million, or 42 cents per share, from US $374 million, or 27 cents per share, a year earlier. The company posted a fourth-quarter revenue of US $6.22 billion – an increase of 6 percent quarter-on-quarter and 13 percent year-on-year, it said.

“I am extremely proud of the full-year results, as we operationalised our returns-focused strategy and surpassed our financial ambitions with resounding success,” Schlumberger CEO Olivier Le Peuch said in a statement.

“Strengthening activity, accelerating digital sales, and outstanding free cash flow performance combined to deliver another quarter of remarkable financial results to close the year with great momentum,” he said.

With crude prices surging about 50 percent last year and currently trading at seven-year highs, oil producers have been looking to capitalize on the current spike.

“Absent any further COVID-related disruption, oil demand is expected to exceed pre-pandemic levels before the end of the year and to further strengthen in 2023,” Le Peuch said.

Full-year revenue for Schlumberger stood at US $22.9 billion, while full-year earnings per share (EPS) excluding charges and credits, was US $1.28.

The company reported a full-year operations cash flow of US $4.65 billion and free cash flow of US $3 billion.