Oil field services giant Schlumberger has posted forecast-beating fourth quarter revenues of $10.97 billion versus $10.23 billion in the third quarter of 2011, and $9.07 billion in the fourth quarter of 2010.
Analysts polled by Thomson Reuters had forecast fourth quarter revenue of $10.78 billion.
The company also reported full-year 2011 revenue of $39.54 billion versus $27.45 billion in 2010.
The firm’s oilfield services divisions made full-year revenues for 2011 of $36.96 billion increased 39% over 2010, driven by significantly improved worldwide activity.
While striking a cautiously optimistic note, Kibsgaard, noted pessimism over the Eurozone crisis in a company statement, with the attendant implication for oil demand.
“Against this backdrop, we are planning for growth in 2012, although we are building significant flexibility into our plans, given the uncertainties,” Kibsgaard said on a conference call to press and investors.
Shale gas fracturing activity in the United States – which has been a huge boon to Schlumberger, as well as rivals Baker Hughes, Halliburton and Frac Tec Services, which together have dominated around half the market – is set to be a victim of its success, as Henry Hub spot prices fall to $2.25 per MMBtu and a lacklustre economy begin to disincentivise further investment in drilling.
The International Energy Agency sharply reduced its global oil demand growth forecast for 2012 by a further 200,000 barrels per day to 1.1 million bpd.
In a round-up of activity over the year, Schlumberger said the Middle East contributed to revenue growth, with onshore activity throughout the region and a resumption of operations in Libya.
“In the Middle East & Asia Area, strong Completions and Artificial Lift product sales and robust SIS software sales drove results—particularly in the India GeoMarket. These results were augmented by continued growth in the Saudi Arabia, Bahrain GeoMarket due to the rebound of land seismic acquisition, strong rigless activity and land rig additions. The Oman GeoMarket grew primarily on higher Wireline and Artificial Lift activities while the Iraq GeoMarket saw an increase in non-project services in addition to new IPM projects,” said the company in a statement accompanying the results.
In Iraq, a company statement lauded “strong operational performance and new Integrated Project Management (IPM) contract awards.”
“In the UAE, Crescent Petroleum awarded WesternGeco an acquisition and processing contract for a full-offset, full-azimuth 3D survey in their Sharjah onshore concession using the UniQ integrated point-receiver land seismic system. The contract integrates several of the most recent technologies from WesternGeco, including Managed Spread and Source (MSS), Surface Wave Analysis Modeling and Inversion (SWAMI), and anisotropic Reverse Time Migration (RTM) depth migration.”
“WesternGeco has also been awarded a five-year contract by Kuwait Oil Company for the world’s largest channel-count seismic survey ever conducted, encompassing land acquisition and data processing of 2,895 km2 covering five fields in Kuwait. The contract includes acquisition with the WesternGeco UniQ integrated point-receiver system, utilizing over 200,000 point receivers on a single crew.”
