SLB, formerly Schlumberger, and Halliburton, two leading oilfield service providers, reported contrasting second-quarter results, highlighting the diverging trends in global energy markets.
SLB, with a dominant international presence, reported strong earnings driven by robust activity in key markets like Saudi Arabia and the UAE. Its international revenue surged 18% year-on-year. The company anticipates continued growth, forecasting a 14%-15% increase in adjusted EBITDA and margins above 25% for the full year.
Advertisement
Hey there! Want to support us? If you’re planning on shopping on Amazon, please consider using amzn.to/4bPDFNL. It doesn’t cost you anything extra, but helps us keep the lights on. Thanks for your support!
Halliburton, with a larger North American exposure, reported a decline in revenue from the region, citing lower activity due to consolidation among producers and weak natural gas demand. The company expects a 6%-8% revenue drop from North America for the full year.
While Halliburton anticipates a recovery in 2025 driven by producer consolidation and an increase in natural gas demand, delays in liquefied natural gas projects continue to impact drilling and gas demand.
Investors favored SLB’s international focus, reflected in its share price rise, while Halliburton’s stock price fell due to concerns about its North American performance.
The contrasting results highlight the shifting landscape of the oilfield service industry, with international growth opportunities outweighing the challenges faced in North America.