Schlumberger Rebrands to SLB, Beats Earnings Estimates As Q2 Revenues Grow By 10%
The world’s largest oilfield services provider Schlumberger, has rebranded and henceforth would be known by a new brand name, SLB. The rebranding comes on the heels of an attractive third-quarter result, which it said beat analyst estimates
The company said in a statement yesterday that the new name reflects its transformation from an oilfield services provider to a global technology company helping the energy transition.
By the new name, SLB, the company said it has dropped the family name of its founders, brothers Conrad and Marcel Schlumberger, who founded the firm in France in the 1920s.
“Beginning today, the legacy Schlumberger brand and nearly all of its affiliated brands will become one under the new SLB brand, which introduces a refreshed visual identity, including a new logo for the company—a symbol of where it is today and where it is heading,” the company said.
SLB attributes the good performance to accelerating international drilling activity on top of already robust activity in North America.
The company reported earnings per share (EPS), excluding charges and credits, of $0.63 for the third quarter, up by 26% sequentially and 75% year on year. The earnings easily beat the analyst consensus in The Wall Street Journal of $0.55 per-share earnings.
Total revenues grew by 10% from the second quarter and by 28% from Q3 2021 and stood at $7.477 billion for the third quarter of 2022. International revenue rose by 13% from Q2 2022 and by 26% from Q3 2021, while revenues in North America were flat quarter-on-quarter and up by 37% year over year.
Commenting on the figures, SLB chief executive, Olivier Le Peuch said the second half of the year is off to a great start with strong third-quarter results that reflect the acceleration of international momentum and solid execution across our divisions and areas.
“Sequentially, we delivered another quarter of double-digit revenue growth and margin expansion, as the pace of growth in our international business stepped up significantly, complementing already robust levels of activity in North America,” Le Peuch added.
Looking forward, he said SLB remains upbeat on the drilling activity globally and expects “multiple years of growth,” the executive added.
“While concerns remain over the broader economic climate, the energy industry fundamentals continue to be very constructive,” said Le Peuch.
STILL on the rebranding, Peuch said: “Our new identity symbolizes SLB’s commitment to moving farther and faster in facilitating the world’s energy needs today and forging the road ahead for the energy transition. It’s a bold challenge. But the legacy of our people, technology and performance are unmatched, and we are ready to answer this challenge.”
Earlier this year, the company announced SLB End-to-end Emissions Solutions (SEES), a business for eliminating methane emissions from oil and gas operations.