Schlumberger reports record year for Middle East operations with US$33 billion in revenue 

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Oilfield services giant Schlumberger (SLB) has achieved a net profit of US$4.2 billion in 2023, marking a 22% increase and establishing a record year for its Middle East operations in terms of revenue. The company posted a total revenue of US$33.1 billion and said all its four segments experienced growth. 

Production systems led the surge with a 25% year-on-year increase to US$9.8 billion, while well construction revenue rose by 18% to US$13.5 billion. Geographically, SLB said the Middle East and Asia played a pivotal role in revenue, climbing 22% to US$11 billion year-over-year.

“In the last quarter of 2023, higher drilling, intervention, stimulation, and evaluation activities both onshore and offshore contributed to the robust performance in the Middle East and Asia,” SLB outlined. 

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The company revealed plans to focus its investments on the Middle East throughout the decade, downplaying potential risks from geopolitical tensions in the region.

Chief Executive Officer (CEO) Olivier Le Peuch stated, “As global energy demand continues to increase, international production is expected to play a key role in meeting supply through the end of the decade.” He emphasized anticipated record investment levels in the Middle East beyond 2025, highlighting expansion plans in Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait.

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Le Peuch also addressed the company’s expectations for the offshore sector, emphasizing its importance in production growth and capacity additions. Despite geopolitical tensions, SLB does not foresee a significant impact on the sector’s overall activity. The company expects long-cycle investments in the Middle East, global offshore, and gas resource plays to be largely insulated from short-term commodity price fluctuations.

While the International Energy Agency (IEA) projects oil supply growth led by producers outside the OPEC+ alliance, SLB remains optimistic about the industry’s growth. The company maintains its capital expenditure guidance for 2024 at US$2.6 billion.

Exiting 2023 with US$17.7 billion in current assets, including US$4 billion in cash and short-term investments, SLB paid nearly four times more dividends in 2023 compared to 2022, amounting to US$1.3 billion. Le Peuch expressed confidence in the industry’s strength and longevity, announcing a 10% raise in the company’s quarterly dividend rate and plans to increase share repurchases in 2024, enhancing returns to shareholders for the full year.

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