BAKU, Azerbaijan, Jan. 17
By Leman Zeynalova - Trend:
Schlumberger recorded a decline in its revenues from drilling and production in the fourth quarter of 2019, Trend reports citing the company.
“Drilling revenue of $2.4 billion, 76 percent of which came from the international markets, decreased 1 percent sequentially due to the end of the summer drilling campaign in Russia and lower drilling activity in North America land largely impacting M-I SWACO and Bits & Drilling Tools. These declines were partially offset by increased drilling activity in the Middle East & Asia area, mainly from the delivery of additional LSTK wells in Saudi Arabia,” said the company in its report on 2019 full year and fourth quarter results.
Schlumberger said drilling pretax operating margin of 12 percent was flat sequentially as margin improvements from drilling projects in the Middle East were offset by the seasonally lower margins in Russia and lower drilling margins in North America land.
“Production revenue of $2.9 billion, of which 61 percent came from the international markets, declined 9 percent sequentially. This was driven by OneStim revenue, which dropped 33 percent sequentially as we continued to right-size our hydraulic fracturing capacity by stacking more fleets in the face of lower demand,” said the company.
This is part of the deployment of our scale-to-fit strategy in North America land—rationalizing our business portfolio to achieve improved returns and better profitability, according to Schlumberger.
“In addition, sand and proppant supply revenue also declined. These declines, however, were partially offset by increased international completions activity in Kuwait, Oman, and the South & East Asia GeoMarket. Higher project activity for Asset Performance Solutions (APS), formerly known as Schlumberger Production Management (SPM), contributed positively to the quarter despite the temporary production shut-in issues in Ecuador.”
Production pretax operating margin of 9 percent contracted by 32 bps sequentially due to lower OneStim activity, partially offset by strength in international margins from higher activity, said the company.
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