• 16 hours Watch for biofuels policy changes ...
  • 11 hours EPA's Pruitt cites Bible to justify administration policies
  • 21 hours Syria's Ghouta - Is there Threat Of Genocide? The World Is Silent.
  • 18 hours Norway - World's Most Democratic Country! Where is the U.S. on the list?
  • 21 hours Majority unlikely to use self-driving cars
  • 22 hours Saudi Arabia's Building a $500 billion Mega-City and Will Run 100% on Renewable
  • 2 days Elon Musk Steps Down From OpenAI Board to Dodge “Potential Future Conflict”
  • 17 hours US shale production dull until someone starts talking shareholder payback
  • 1 hour Perovskite Co.'s will they live to the promise?
  • 16 hours First Oklahoma, Now Kansas Fracking Tied to Earthquakes
  • 2 days US admin to kill Energy Star program
  • 6 hours Ideas on demand
  • 22 hours VW Looks At Apple For Electric-Car Design Guidance
  • 20 hours HAPPY RIG COUNT DAY!!
  • 23 hours DNA Robots Target Cancer
  • 19 hours Plastic bans to dent oil demand growth-BP
An Energy Stock Set To Rebound

An Energy Stock Set To Rebound

While the stock market in…

Venezuela Rakes In $735 Million From El Petro Proceeds

Venezuela Rakes In $735 Million From El Petro Proceeds

Venezuela claims to have generated…

Schlumberger Optimistic In 2018 For Oilfield Services Businesses

SLB

Schlumberger thinks that 2018 will be the year of recovery for the global oil industry after three years of “unprecedented market downturn,” according to a new article by the Financial Times.

Earnings in the fourth quarter of 2017 from upstream, midstream, and downstream operations were higher than expected, demonstrating why the leading oilfield services company had become “increasingly positive on the global outlook for our business.”

Oilfield services companies (OFC) have been hit hard by low oil prices since the crash of September 2014. With oil and gas extraction projects unable to pay OFCs their previous rates, the sector was forced to slash how much it charged for its services, cutting deep into profits.

Still, Schlumberger is sizing down. It decided to pull out of the seismic survey data business in both onshore and offshore projects.

Earnings per share in Q4 2017 jumped to 48 cents, or 78 percent year-over-year, exceeding the 44-cent prediction, according to official figures.

As a result, CEO Paul Kibsgaard said “there is renewed excitement and enthusiasm throughout our organization.” And it seems the excitement is spreading to other up-and-coming OFCs as well.

In the first five months of 2017, five oilfield services providers filed for an initial public offering, overtaking exploration and production listings by a wide margin. The value of the five listings was also impressive: at $1.36 billion it surpassed the total raised through listings in 2013, when oil was trading at almost $100 a barrel. But some of the listings flopped, with the companies trading much lower than their issue price.

Now prices are even higher than they were at the beginning of 2017. There is much stronger demand for fracking and maintenance services, and two companies that last year postponed plans for an IPO are now preparing to try again.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News