How Important Are International Rig Counts to Schlumberger?
SLB’s international revenues rose to 76% of its total revenues in 2Q16, as compared to 72% in 2Q15.
Oct. 12 2016, Published 12:05 p.m. ET
Revenue from international operations
In 2Q16, Schlumberger’s (SLB) revenue share generated outside the US rose. SLB’s international revenues rose to 76% of its total revenues in 2Q16, as compared to 72% in 2Q15. By comparison, Halliburton’s (HAL) revenues from its international operations, by the end of 2Q16, fell to ~43% of its total revenues, as compared to 50% one year previously.
International rig count
By September 30, the international rig count fell 18% from one year previously. The fall was smaller than the total fall in the US rig count, which has nearly halved in the past year as of October 10. Notably, SLB makes up 0.53% of the iShares Dow Jones US ETF (IYY). The energy sector makes up 6.9% of IYY.
Now let’s discuss Schlumberger’s growth drivers for 3Q16.