The American company SLB, which provides oilfield services, noted that increased offshore activity contributed to revenue growth in the second quarter, helping offset the impact of the conflict in the Middle East.

Second Quarter Financial Results

• The company’s revenue for the second quarter rose by 5%, reaching $9 billion compared to $8.5 billion for the same period last year.
• Net profit decreased by 18% year-over-year, amounting to $833 million.
• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 7% to $1.9 billion.
• Earnings per share dropped by 26% to 55 cents.

Despite the decline in profit, revenue, EBITDA, and earnings per share all exceeded the consensus forecasts compiled by TD Cowen for the second quarter.

Regional Performance

• SLB’s international revenue declined by 3% to $6.7 billion, mainly due to a slowdown in operations in the Middle East caused by military actions between the US and Iran.
• In Latin America, revenue grew by 15% year-over-year and by 12% compared to the first quarter of the current year, surpassing $1.7 billion. This growth was driven by strong sales of production systems in Guyana and Mexico, increased revenue from SLB OneSubsea, higher digital sales in exploration, and expanded offshore drilling in Brazil.
• In North America, revenue increased by 36% to $2.2 billion in the second quarter compared to the same period last year. The growth was fueled by higher sales of production chemicals, artificial lift systems, and valves for onshore operations in the US, as well as increased revenue from data center solutions.

Operational and Financial Highlights

• Operating cash flow reached $1.36 billion, while free cash flow amounted to $716 million in the second quarter.
• The SLB Board of Directors approved a quarterly dividend of 29.5 cents per share.

Overall Trends

Revenue growth across all divisions, except for the Middle East, was driven by increased offshore activity, a recovery in demand for unconventional projects in the US, and strong demand for production and recovery solutions.