Schlumberger beat third-quarter earnings expectations on Oct. 20, but the oil services company missed revenue forecasts.
The Houston-based company reported earnings of 78 center per share, beating estimates by 1 cent. Revenue totaled $8.31 billion, up 11% year-over-year, but falling short of Wall Street's forecasts by $10 million.
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Schlumberger (SLB) -) CEO Olivier Le Peuch said in a statement that third-quarter revenue increased 3% sequentially — by more than $200 million — "driven by the Middle East & Asia, which increased 8% in the quarter and continues to demonstrate positive investment momentum."
"Our strong quarterly performance was propelled by broad-based growth across Saudi Arabia, the United Arab Emirates, Indonesia, China, Malaysia, Kuwait, and Oman," he said. "Similarly, revenue in our offshore business grew as our activity continues to benefit from operators working to renew supply, accelerate cycle times, and increase the productivity of their assets."
"This was particularly notable in offshore Africa, Brazil, and Scandinavia," he added.
Le Peuch said the oil and gas industry continued to benefit from a multiyear growth cycle that has shifted to the international and offshore markets.
"Concurrently, upstream spending is accelerating as operators continue to invest in long-cycle developments, production capacity expansions, exploration and appraisal, and enhanced gas production," he said.
"The long-term nature of these global investments underscores the breadth, durability, and resilience of this cycle, and we expect these market dynamics to continue to drive profitable growth in the years ahead."
Looking ahead, Le Peuch said he expected sequential revenue growth in the fourth-quarter.
Oil prices were climbing on Friday, driven by the Israel-Hamas war, with Israel moving closer to an invasion of the Gaza Strip.
A U.S. Navy warship shot down missiles appearing to head toward Israel Thursday and American bases in Iraq and Syria were repeatedly targeted by drone attacks, the Associated Press reported.
