Schlumberger NV on Jan. 22 joined rivals in predicting a steady recovery in the oil industry this year after the worl’'s top oilfield services provider’s fourth-quarter results beat estimates, aided partly by growing drilling demand.
Easing of COVID-19 related restrictions has propelled oil demand and prices, which remain steady since a late-2020 rebound from historic lows. Brent crude, which averaged at $45 per barrel in the last quarter of 2020, hovered around $55 on Jan. 22.
Schlumberger CEO Olivier Le Peuch said he was optimistic about demand recovery through this year, as rivals Halliburton Co. and Baker Hughes Co. have noted, giving investors hope the oil downturn is nearing an end.
The stage is set “for oil demand to recover to 2019 levels no later than 2023, or earlier as per recent industry analysts’ reports,” Le Peuch said.
In light of the demand recovery, the company forecast capital investments this year of between $1.5 billion and $1.7 billion, a slight improvement at the midpoint of the range from last year’s $1.5 billion.
Le Peuch, who took over the top job at Schlumberger in 2019 and has since undertaken a massive cost cutting program, said spending and activity momentum in North America will continue through the first half, while international spending will increase from the second quarter.
Schlumberger posted total fourth-quarter revenue of $5.53 billion, beating analysts’ estimates of $5.25 billion. It’s the first quarter-over-quarter increase in revenue for the company since the third quarter of 2019.
Net income excluding charges and credits came in at 22 cents per share in the quarter ended Dec. 31, which also beat estimates of 17 cents, according to Refinitiv IBES data, aided in part by a massive cost cutting program.
The award have resulted in over 150 new positions being created in the region and includes scopes that accelerates the company’s expansion in the drilling sector.
NTS Group has acquired Amega West Services, a market leader in the manufacture, repair and rental of legacy and specialized drilling equipment used in offshore and land-based oil and gas extraction applications, from Carpenter Technology Corp. on Oct. 12.
Churchill Drilling Tools, a global oilfield service company specializing in drilling innovation, said Oct. 30 it achieved four successful drill-string severs using its HyPR HoleSaver, following stuck pipe events across the Middle East, including two in the UAE.