Schlumberger’s North America revenue
In 3Q16, Schlumberger’s (SLB) revenue share from its North America operations came down. In 3Q16, its North America revenue share fell to 24%—compared to 29% in 3Q15. So, the company has steadily diversified away from North America in the past year. International operations contributed 76% of its 3Q16 revenues. In comparison, Halliburton’s (HAL) revenue share from North America fell marginally in 3Q16 compared to 3Q15.
Schlumberger accounts for 0.47% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 6.7% of IWV.
US rig count
According to Baker Hughes (BHI), the US rig count fell 38% in 3Q16 compared to 3Q15. The US rig count reached its multiyear high in September 2014. Since then, it fell 69% until November 25, 2016.
However, from September 30 until the week ending November 25, the US rig count rose 14% and closed at 593. In comparison, the international rig count fell 1% in October compared to a month ago. A higher US rig count can increase Schlumberger’s revenues and earnings in 4Q16.
Next, we’ll discuss Schlumberger’s revenue and earnings.