Global oilfield services leader SLB Ltd (formerly Schlumberger) has posted second-quarter results that surpassed market expectations for both revenue and adjusted earnings per share, with growth in North America and other international markets effectively counteracting ongoing disruptions in the Middle East.
According to the financial report, the company's second-quarter revenue reached $8.97 billion, marking a 5% increase year-over-year and a 3% rise sequentially, surpassing the analyst consensus of $8.67 billion. On a GAAP basis, net income stood at $786 million, or $0.52 per share. Adjusted earnings per share came in at $0.55, above the anticipated $0.51 but down 26% from $0.74 in the same period last year.
Instability in the Middle East had a notable impact on performance. Revenue in the region declined 13% sequentially, primarily due to production restrictions or interruptions in countries such as Iraq and Qatar. In response, the company had previously warned that the quarterly earnings per share would be reduced by 6 to 8 cents. However, North American revenue surged 36% year-over-year to $2.24 billion, while other international markets, including Latin America, Europe, Africa, and Asia, also recorded broad-based growth, effectively offsetting the negative effects from the Middle East.
By business segment, the production systems division saw a 7% sequential revenue increase to $3.77 billion, driven by higher sales in subsea operations and artificial lift. The digital business posted a 9% sequential revenue rise to $697 million. In contrast, the drilling and reservoir performance segment experienced a decline due to the Middle Eastern headwinds.
On the cash flow front, operating cash flow for the quarter was $1.36 billion, with free cash flow at $716 million. The board of directors has approved a quarterly dividend of $0.295 per share. Chief Executive Officer Olivier Le Peuch stated that the company's data center solutions business is gaining strong momentum, with first-half revenue growing 63% year-over-year, and the annualized revenue is expected to exceed $1 billion by the end of 2026.