Latest news with #OlivierLePeuch
Yahoo
3 days ago
- Business
- Yahoo
SLB anticipates decrease in global upstream investment in 2025
Oilfield services giant SLB issued a cautionary statement on Friday, indicating a possible downturn in global upstream spending in 2025, especially in North and Latin America. North America is particularly vulnerable to these anticipated short-cycle expenditure cuts, whereas regions such as Asia and the Middle East appear more robust thanks to lower production costs, national energy security imperatives and investments in gas projects. The decline in crude prices by more than 21% in the April–June quarter compared to the previous year has heightened concerns over a wider-scale pullback in exploration and production investments, reported Reuters. SLB has highlighted the ongoing market uncertainty influenced by factors such as OPEC+ supply decisions, trade talks and geopolitical tensions. SLB CEO Olivier Le Peuch said: "The market is navigating several dynamics – including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts. 'Despite this, commodity prices have remained range bound. Meanwhile, customers have selectively adjusted activity, prioritising key projects and planning cautiously, particularly in offshore deep-water markets.' The company also noted that the tariffs imposed by US President Donald Trump could impact its margins by 20–40 basis points in the latter half of the year. Despite these challenges, SLB reported total revenue of $8.55bn in the second quarter (Q2), surpassing the anticipated $8.48bn. SLB experienced a surge due to increased offshore activities and heightened drilling demand in the United Arab Emirates, Kuwait and Iraq. North American revenues saw a 1% increase to $1.66bn compared to last year, bolstered by advancements in data-centre infrastructure solutions. The company's earnings, excluding specific charges and credits, amounted to $0.74 per share for the quarter ending 30 June, marginally exceeding the average forecast of $0.73. Meanwhile, SLB also recently finalised the acquisition of ChampionX, a deal first announced in April of the previous year. The completion followed the receipt on Tuesday of the last required regulatory consent from UK authorities. "SLB anticipates decrease in global upstream investment in 2025" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Insider
5 days ago
- Business
- Business Insider
SLB Earnings: SLB Stock Gushes Higher as Q2 Earnings Beat Forecasts
Shares in oil field services and energy technology group Schlumberger (SLB) were higher today as Q2 earnings beat estimates despite weakness in key global markets. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Headwinds Resilience SLB reported adjusted earnings per share of $0.74 for the quarter, down from $0.85 in the prior three-month period, but above Bloomberg consensus expectations of $0.73. Revenues dropped by 6.5% to $8.55 billion, but again beat forecasts of $8.48 billion. The performance kept up the company's forecast-beating heritage. Last month the company pointed out in a presentation that weaker drilling activity in Saudi Arabia and Latin America could impact earnings. However, today CEO Olivier Le Peuch said the returns demonstrated its resilience to headwinds from softer upstream spending and broader economic uncertainty. 'The market is navigating several dynamics — including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts. Despite this, commodity prices have remained range bound. Meanwhile, customers have selectively adjusted activity, prioritizing key projects and planning cautiously. In this context, the upstream market has remained relatively resilient, underscoring the enduring strength of our industry,' Le Peuch said. Digital Delight Its digital division, where it is 'partnering with customers to migrate their technology and workflows into the cloud, to embrace new AI-enabled capabilities,' saw a 7% lift in pre-tax operating income to $327 million. Revenues slipped 1% to $995 million. This includes deploying its AI platform on Mistral Compute, the integrated AI compute offering introduced by Mistral AI. SLB also intends to increase its exposure to the 'less cyclical and growing production and recovery space' via its $8 billion acquisition of ChampionX, (CHX) which closed earlier this week. On TipRanks, SLB has a Strong Buy consensus based on 14 Buy and 2 Hold ratings. Its highest price target is $53. SLB stock's consensus price target is $45.38 implying a 30.89% upside.
CNBC
5 days ago
- Business
- CNBC
Optimistic, confident that oil market will remain resilient, says SLB CEO Olivier Le Peuch
SLB CEO Olivier Le Peuch joins CNBC's "Power Lunch" team to discuss the company's latest earnings report, oil markets and more.
Reuters
6 days ago
- Business
- Reuters
SLB beats quarterly profit estimates on steady oilfield services demand
July 18 (Reuters) - Top oilfield services firm SLB (SLB.N), opens new tab narrowly beat Wall Street expectations for second-quarter profit on Friday, as resilient demand in parts of its international business helped offset drilling slowdown in North America, Mexico and Saudi Arabia. SLB, the first of the Big Three U.S. oilfield services provider to report quarterly results, had previously flagged weaker drilling activity in Saudi Arabia and Latin America, with rigs demobilized and short-cycle work slowing. "The market is navigating several dynamics — including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts," CEO Olivier Le Peuch said in a statement. Crude prices averaged $66.83 per barrel in the April–June quarter, down more than 21% from a year earlier. The decline has raised concerns about a broader pullback in exploration and production spending, weighing on demand for oilfield services. "Customers have selectively adjusted activity, prioritizing key projects and planning cautiously, particularly in offshore deepwater markets," Le Peuch added. Shares of the company were up 1.3% in premarket trading. SLB said international revenue declined more than 8% in the quarter to $6.85 billion, from $7.45 billion a year ago. That still beat analysts' expectation of $6.77 billion, according to data compiled by LSEG. The company got a boost from higher offshore activity and increased drilling demand in the UAE, Kuwait and Iraq. Total revenue fell 6% to $8.55 billion, but beat expectation of $8.48 billion. SLB said its second-quarter North America revenue rose 1% to $1.66 billion from last year, helped by gains in data-center infrastructure solutions. The company posted earnings, excluding charges and credits, of 74 cents per share, for the three months ended June 30, compared with expectation of 73 cents.
Yahoo
6 days ago
- Business
- Yahoo
SLB earnings top forecasts amid digital platform strength
- SLB has posted second-quarter results that were above consensus estimates, as the oilfield services group was boosted by growth at its digital platforms that helped offset lower sales of exploration data. Adjusted earnings per share came in at $0.74 for the quarter, down from $0.85 in the prior three-month period, but above Bloomberg consensus expectations of $0.73. Revenues also slipped by 6.5% to $8.55 billion, topping projections of $8.48 billion. In a statement, CEO Olivier Le Peuch said the returns demonstrated SLB's resilience to headwinds from softer upstream spending and broader economic uncertainty. Le Peuch added that commodity prices have remained "range bound" despite "the market [...] navigating several dynamics -- including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts." Last month, Le Peuch said at an event that SLB was expecting its earnings to be dented by weaker drilling activity in Saudi Arabia and Latin America. Several rigs in Saudi had been demobilized and operations paused at the country's Jafurah unconvential gas field, while short-cycle work in Latin America was down. However, Le Peuch said on Friday that SLB's broad exposure "across geographies and business lines" had enabled it to overcome the impact of regional slowdowns. International revenue ticked up by a sequential 2%. SLB also intends to increase its exposure to the "less cyclical and growing production and recovery space" via its $8 billion acquisition of ChampionX, which closed on Wednesday, the company said. Shares of SLB were higher by more than 1% in premarket U.S. trading. Related articles SLB earnings top forecasts amid digital platform strength These Under-the-Radar Stocks Offer Better Risk-Reward Ratio Than Nvidia Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
