The biggest oilfield services company in the world Schlumberger Limited (SLB.N), posted their third-quarter profit estimates that beat the company’s ninth consecutive quarter because of strong drilling activities in the North America region.
Limited provides drilling equipment and technology, seismic oil surveys, well construction, and also natural gas companies, stated that revenue coming from its operations in the U.S. increased 18%, amounting to a total of $4.26 billion this quarter, which accounts for 1/3 of overall revenue.
Schlumberger also stated that overall revenue from the Schlumberger’s international business increased 5%, amounting to a total of $8.31 billion, and the company’s strong Asia and Middle East businesses trumped recent significant headwinds in the Northern Iraq areas and its recent sanctions against Russia.
The company is drilling currently with Rosneft (ROSN.MM) on Sakhalin Island, warned last August that current sanctions against Russia will definitely hurt the company’s third-quarter profit up to 3 cents for every share.
The company today has the lowest rate when it comes to exposure in the North America region compared to the other major oilfield service providers that include Baker Hughes Inc. (BHI.N), Halliburton Co (HAL.N), and Weatherford International PLC (WFT.N).
It was reported last Thursday by Baker Hughes that for the very first time profit will be lower-than-expected in five quarters, as current political tensions in Iraq and Libya and also extreme fall in drilling operations in the Gulf of Mexico areas are hurting current margins.
Baker Hughes also stated that their clients can still reconsider projects if current oil prices fall and will remain its prices per barrel at $75 for just a few months.
The current ample supply and yet weak demand has been hitting oil prices recently. The Global benchmark of Brent crude LCOc1 futures increased to $84.49 per barrel last Thursday, after decreasing to $83 earlier, 28% lower from a last June’s high.
Overall prices of U.S. crude CLc1 also increased to $82.83 per barrel after decreasing to a 2 year low of prices per barrel recorded which was at $80.