Schlumberger (SLB) announced its third-quarter results today. The company’s revenue rose 3% sequentially to $8.5 billion in the quarter. Its international revenue also rose 3% sequentially, to $5.6 billion. Excluding a $12.7 billion impairment charge for goodwill, intangible assets, and fixed assets, the company’s adjusted EPS grew 23% sequentially. Schlumberger declared a dividend of $0.50 per share in the quarter.
Commenting on the company’s international and North American performance, Schlumberger CEO Olivier Le Peuch said, “Sustained international activity drove overall growth despite mixed results in North America. The North America business saw strong offshore sales with minimal growth on land due to slowing activity and further pricing weakness.” High summer activity in the northern hemisphere and new projects in Africa drove its international revenue growth.
In the third quarter, Schlumberger’s North American revenue fell 11% year-over-year but rose 2% sequentially to $2.8 billion. Meanwhile, its Latin American revenue fell 9% sequentially to $1.0 billion. The company’s European, CIS (Commonwealth of Independent States), and African revenue rose 9% sequentially to $2.1 billion. Likewise, its Middle Eastern and Asian revenue rose 4% sequentially to $2.6 billion.
Schlumberger stock reacted positively to the earnings report and rose around 3% in early trading today. This year, major oilfield service stocks have underperformed broader markets. Schlumberger stock has fallen roughly 12% this year, while National Oilwell Varco (NOV) and Halliburton (HAL) have fallen 20% and 30%, respectively. On the other hand, TechnipFMC (FTI) has risen around 17% year-to-date, and the S&P 500 has risen approximately 20%.
Some of Schlumberger’s major peers are set to announce their third-quarter results this month. Halliburton, TechnipFMC, National Oilwell Varco, and Baker Hughes are set to post their results on October 21, 23, 28, and 30, respectively. Pipeline company Kinder Morgan (KMI) reported its results on October 16. To learn how it fared, read Kinder Morgan: Q3 Earnings Had Mixed Results.