Does the Rig Count Affect SLB’s International Revenue?

In 2Q16, Schlumberger’s (SLB) revenue share generated outside the United States rose. SLB’s revenue from international geographies rose to 76% of its total 2Q16 revenue, compared to 72% in 2Q15.

By comparison, Halliburton’s (HAL) revenue from its international operations, fell to ~43% of its total revenue by the end of 2Q16, compared to 50% a year ago.

By July 31, 2016, the international rig count had fallen by 16% compared to a year ago. The fall was less than the US rig count’s fall, which nearly halved in the year leading up to September 2, 2016. SLB makes up 0.50% of the iShares Dow Jones US ETF (IYY). The energy sector makes up 6.5% of IYY.

Next, we’ll discuss Schlumberger’s revenue and earnings.