(Reuters) – SLB  beat analysts’ estimates for quarterly profit on Friday and said it expects strong growth in its international business this year as resilient offshore and overseas drilling activity boosted demand for its oilfield services and equipment.
Schlumberger has banked on international growth, primarily from the Middle East, Europe and Africa, in recent years as U.S. shale firms have slowed drilling activity.
However, the war between Israel and Palestinian Islamist group Hamas in Gaza and a recent spate of attacks by Iran-backed Yemeni militant group Houthis on ships in the Red Sea have caused worries of a supply disruption and reduced drilling activity in the Middle East.
“In the international environment, despite elevated geopolitical tensions in various regions, we do not anticipate a significant impact on the sector’s overall activity, absent any escalation,” SLB’s CEO Olivier Le Peuch said in a statement.
SLB expects record investment levels in the Middle East extending beyond 2025, and sees continued offshore activity in Brazil, West Africa, the Eastern Mediterranean, the Middle East, and Southeast Asia, Le Peuch said.
Revenue from International rose 18% to $7.29 billion in the reported quarter while North America remained flat.
The company, formerly called Schlumberger, reported net income, excluding charges and credits, of 86 cents per share, for the three months ended Dec. 31. This compares with analysts’ average estimate of 84 cents per share, according to LSEG data.
The company also raised its quarterly cash dividend by 10%.
Shares of SLB were down 0.9% pre-market at $49.97.
Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila and Chizu Nomiyama
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