Oilfield services giant SLB tops profit estimates amid overseas business strength
Investing.com -- Oilfield services giant SLB (NYSE:SLB) has reported fourth-quarter profit that topped analyst estimates and bumped up its dividend.
Houston-based SLB posted a 21% jump in net income attributable to shareholders, excluding charges and credits, to $1.24 billion in the three months ended on Dec. 31. The total translated to diluted earnings per share of $0.86, above Bloomberg consensus expectations of $0.84.
Revenue also grew by 14% year-on-year to $8.99B, beating projections of $8.94B, thanks in large part to the group's merger of its subsea oil and gas construction business with Norway's Aker Solutions. Strength at SLB's international operations helped offset "relatively flat" revenue in North America as well.
Meanwhile, SLB's board approved a 10% increase in its quarterly cash dividend to stakeholders to $0.275 per share.
In a statement, Chief Exeuctive Olivier Le Peuch predicted that increasing global energy demand will drive overseas production "through the end of decade" despite "elevated geopolitical tensions" in various regions. He added that SLB anticipates "record investment levels" in the Middle East beyond 2025.
Le Peuch has been at the forefront of an effort by the firm, known as a provider of oilfield services and equipment like drilling and subsurface analysis, to rebrand itself as a provider of digital services and a backer of clean energy.
“Our performance and returns-focused strategy, combined with our differentiated market positioning and digital capabilities, will drive profitable growth and further margin expansion, setting a strong foundation for long-term outperformance," Le Peuch said.
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