Schlumberger ( NYSE: SLB ) +2.3% pre-market Friday after posting Q3 adjusted earnings and revenues that beat expectations, as higher oil and gas prices led to more drilling activity.
Q3 net income surged 65% Y/Y to $907M, or $0.63/share, from $550M, or $0.39/share, in the year-ago quarter, but fell 5% from Q2's $959M; adjusted EBITDA jumped 35% Y/Y and 15% Q/Q to $1.75B, with adjusted EBITDA margin rising to 23.5% from 22.6% in Q2 and 22.2% in the prior-year period.
The company said its adjusted earnings and pre-tax segment operating margin of 18.7% were the highest since 2015.
Q3 revenues jumped 28% Y/Y and 10% Q/Q to $7.48B; by segment, Well Construction +36% Y/Y to $3.08B, Production Systems +28% to $2.15B, Reservoir Performance +22% to $1.45B, and Digital & Integration +11% to $900M.
Revenues in the company's International segment +26% Y/Y and +13% Q/Q to $5.88B, while North America revenues +37% Y/Y but flat Q/Q to $1.54B.
"While concerns remain over the broader economic climate, the energy industry fundamentals continue to be very constructive," CEO Olivier Le Peuch said, adding the company expects to deliver sequential revenue growth and margin expansion in Q4.
Schlumberger's ( SLB ) stock price return shows a 44% gain YTD and a 31% increase during the past year .
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Schlumberger gains after Q3 beat, as global drilling ramps up