“From a macro perspective, we expect the oil market sentiments to steadily improve over the course of 2019, supported by a solid demand outlook combined with the OPEC and Russia production cuts taking full effect, slowing shale oil production growth in North America, and a further weakening of the international production base as the impact of four years of underinvestment becomes increasingly evident,” said CEO Paal Kibsgaard.
Schlumberger views E&P investments in the international markets to increase by 7% to 8% in 2019, supported by a higher rig count and a rise in the number of customer project FIDs. In North America, Schlumberger expects future E&P investment levels to likely be dictated by free cash flow and sees E&P investments in North America land down 10% in 2019.
Revenue from North America was 3% lower sequentially, driven by softer pricing and lower activity for both hydraulic fracturing- and drilling-related businesses.
International revenue increased 3% year-on-year to $5 billion. Reservoir Characterization, Drilling, and Production combined to deliver year-on-year revenue growth of 8%, on track with Schlumberger’s aim of reaching high single-digit growth in the international markets in 2019.
Schlumberger stock had gained 31% since the beginning of this year and dropped 31% in the past 12 months.