BAKU, Azerbaijan, Jan. 17
By Leman Zeynalova - Trend:
Schlumberger expects 2020 exploration and production capex spending growth rate in the international markets to be in the mid-single-digit range, Trend reports citing the company.
“We would therefore expect our international portfolio revenue to grow at the same pace or higher, excluding the effects of the Sensia and Drilling Tools transactions,” said the company.
The carved-out businesses in these transactions accounted for approximately 2 percent of the company’s global revenue in 2019.
Schlumberger expects that international revenue growth will be more heavily weighted to the second half of the year with increasing offshore activity, improving activity mix from the early deepwater growth cycle, and increasing exploration work toward the end of the year and into 2021.
“In North America, we are continuing to scale-to-fit our organization and portfolio by repurposing or exiting underperforming business units, focusing on asset-light operations, and expanding our technology access business models. In alignment with our stated strategy, we are cautiously optimistic that the high-grading of our portfolio will promote margin expansion and the improvement of returns in the North America land market. It has also led to the closing of a significant number of facilities and, unfortunately, workforce reductions,” said the company.
After a strong free cash flow performance in the second half of 2019, Schlumberger is confident in its ability to further improve cash flow generation in 2020.
“Our focus on improved margins, capital stewardship, and careful management of working capital will continue to underpin our ability to generate improved free cash flow. All in all, we finished the year with a very solid quarter, aligned with our performance vision and our focus on returns.”
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