Slb Sees Growth Pivoting Overseas
Schlumberger Ltd., the world’s largest oilfield services provider, is seeing its growth pivot overseas as North American sales decline.
Slb’s Performance in North America
The Houston-based company reported a 7% drop in North American revenue in the third quarter, while international sales rose 6%. The company’s North American business has been hit hard by the pandemic-induced oil price crash, which has caused many oil and gas producers to cut back on drilling and exploration.
The company’s North American revenue has been declining since the start of the pandemic, and the trend is expected to continue in the near future. Schlumberger’s North American revenue was down 10% in the second quarter and 8% in the first quarter.
Slb’s Performance Overseas
Schlumberger’s international business, however, has been performing well. The company’s international revenue rose 6% in the third quarter, driven by strong performance in the Middle East and Asia Pacific regions.
The company’s international business has been a bright spot for Schlumberger, as the company has been able to capitalize on the increased demand for oilfield services in these regions. Schlumberger’s international revenue was up 8% in the second quarter and 4% in the first quarter.
Slb’s Outlook
Schlumberger is expecting its international business to continue to drive growth in the coming quarters. The company is also expecting to benefit from the recovery in oil prices, which has been driven by increased demand from China and other emerging markets.
The company is also expecting to benefit from the increased demand for oilfield services in the Middle East and Asia Pacific regions. Schlumberger is also expecting to benefit from the increased demand for oilfield services in Latin America, as the region is expected to see a rebound in oil production in the coming quarters.
Slb’s Strategies
Schlumberger is taking steps to capitalize on the increased demand for oilfield services in these regions. The company is investing in new technologies and expanding its presence in these regions.
The company is also focusing on cost-cutting measures to improve its profitability. Schlumberger is also focusing on improving its operational efficiency and reducing its debt.
Slb’s Challenges
Despite the company’s efforts to capitalize on the increased demand for oilfield services in these regions, Schlumberger is facing some challenges. The company is facing stiff competition from other oilfield services providers, which are also investing in new technologies and expanding their presence in these regions.
The company is also facing headwinds from the ongoing pandemic, which has caused many oil and gas producers to cut back on drilling and exploration. This has led to a decrease in demand for oilfield services, which has put pressure on Schlumberger’s revenue and profits.
Slb’s Future
Despite the challenges, Schlumberger is optimistic about its future. The company is expecting its international business to continue to drive growth in the coming quarters. The company is also expecting to benefit from the recovery in oil prices and the increased demand for oilfield services in the Middle East and Asia Pacific regions.
Schlumberger is also taking steps to improve its operational efficiency and reduce its debt. The company is also investing in new technologies and expanding its presence in these regions.
Overall, Schlumberger is expecting its international business to continue to drive growth in the coming quarters. The company is also expecting to benefit from the recovery in oil prices and the increased demand for oilfield services in the Middle East and Asia Pacific regions.