Oilfield services giant SLB (NYSE: SLB) reported better-than-expected third-quarter earnings on Friday, supported by recovering Middle Eastern operations, strong North American activity and contributions from its ChampionX acquisition.
The company reported adjusted earnings of $0.64 per share, beating analysts’ expectations of $0.62, although earnings declined 7% from a year earlier.
Quarterly revenue increased 6% year-over-year to $9.45 billion, exceeding Wall Street estimates of approximately $9.29 billion.
North American revenue surged 24% to $2.40 billion, supported by stronger unconventional activity and ChampionX’s production chemicals and artificial lift businesses.
International revenue rose 1% to $6.99 billion, while Latin American operations recorded 18% growth, benefiting from offshore activity in Brazil, Guyana and Mexico.
Despite continued disruptions from the Iran war, SLB reported a recovery in Middle Eastern operations. Revenue from the Middle East and Asia climbed 9% sequentially to $2.81 billion, although it remained 6% below year-earlier levels.
The company’s Production Systems division generated $4 billion in revenue, up 15% annually, helped by nearly $950 million in contributions from ChampionX.
Meanwhile, SLB’s diversification into digital infrastructure continued gaining momentum. Data Center Solutions revenue jumped 76% year-over-year to $230 million.
As previously reported by Oilprice.com, SLB agreed in August to acquire German cooling technology manufacturer Kelvion for approximately $3.4 billion in cash, alongside the assumption of $700 million in debt.
SLB generated $828 million in free cash flow during the quarter and repurchased $656 million of its shares.
Looking ahead, management expects international oilfield activity to strengthen in 2027, supported by offshore developments, increased Venezuelan operations and expanding digital opportunities.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
