SLB beats profit estimates on North America demand, ChampionX deal boost
SLB surpassed Wall Street expectations for the third-quarter profits on Friday as steady demand in North America, and contributions from its ChampionX acquisition, helped offset weakening activity in oilfields in other regions.
After months of reduced expenditure, the U.S. Oilfield Market appears to have stabilized, but SLB's main profit generator, international demand, is still tepid.
Baker Hughes' latest data confirms increased oilfield activity across North America. The data showed that the total rig number, which is an indicator of future production, increased by 3% in the region to 718 at end of July-September quarter compared with the previous three-month period. However, the international rig counts remained at 1080.
The CEO Olivier Le Peuch described this quarter as "resilient" due to an oversupplied market for oil and geopolitical uncertainties.
Le Peuch, SLB's CEO, said that SLB anticipates a rebound in international markets as the supply and demand balances, supported by continued investment in oil and gas capacity expansion projects, and a positive outlook for deepwater.
SLB's international revenue, which makes up about 80%, dropped 7% in the third quarter to $6.92billion, while North America revenues rose 14% to $1.9billion.
SLB's earnings for the last quarter were also boosted by its $7.75 billion purchase of smaller competitor ChampionX.
SLB's global third-quarter revenue for 2025 was down 9% compared to a year ago, excluding the impact of the acquisition.
According to data compiled and analyzed by LSEG, the company reported an adjusted loss of 69 cents for the quarter that ended on September 30. This was compared with analyst estimates of 66 cents. Tanay Dhumal, Bengaluru. Anil D'Silva, editing.
(source: Reuters)
