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SLB Says Sequential Q2 Growth Across International Markets Offset Middle East Crisis Impact

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SLB (SLB), the Houston, Texas-based energy technology major, said on Friday that "broad-based sequential growth across international markets", driven by offshore activity in Latin America, Europe & Africa, and Asia, more than negated the impact of continued disruption in the Middle East.

Middle East & Asia revenue in Q2 fell 4% sequentially and 14% year-on-year to $2.57 billion, weighed down by a 13% decline in the Middle East, which contributed about 65% of the regional revenue for the quarter.

The decline was offset partly by 17% rise in Asian revenues, the company said its earnings statement.

"The decline in the Middle East was driven by lower activity levels and operational disruptions related to the regional conflict. While activity began to recover in certain countries as conditions improved, operations in other markets remained constrained by production shut-ins and security challenges," the company said.

In Q2, the company's Latin American revenue of $1.71 billion was 12% higher sequentially and 9% year-on-year; while revenue from Europe & Africa rose 6% sequentially and fell 3% year-on-year to $2.39 billion. North America revenue of $2.24 billion was 4% up sequentially and 1% higher than last year.

The company reported Q2 revenue of $3.77 billion from its production systems division, 29% higher than the $2.93 billion reported for the same quarter last year.

The well construction division generated revenues of $2.74 billion for the quarter ended June 30, 7% lower than $2.96 billion last year, according to its statement.

Meanwhile, the reservoir performance division reported $1.56 billion in revenues for Q2, 8% lower than $1.69 billion in the year-ago period.

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