Schlumberger shares pop premarket after better-than-expected earnings as oil company raises guidance

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Schlumberger Ltd. shares SLB, +4.28% jumped 2.7% in premarket trade Friday, after the French oil major posted stronger-than-expected earnings for the second quarter amid high oil prices and raised its full-year guidance. The Paris-based company posted net income of $959 million, or 67 cents a share, for the quarter, up from $510 million, or 36 cents a share, in the year-earlier period. Adjusted per-share earnings came to 50 cents, well ahead of the 40 cent FactSet consensus. Revenue rose 20% to $6.773 billion from $5.962 billion, also ahead of the $6.277 billion FactSet consensus. “The strength of our second-quarter outperformance highlights a firmly established growth inflection and our ability to comprehensively participate in drilling and completion activity growth globally,” CEO Olivier Le Peuch said in a statement. He cited a favorable mix of exploration and offshore activity and higher pricing as factors driving the quarterly performance and announced the company was raising guidance. Schlumberger is now expecting full-year revenue of at least $27 billion, ahead of the $26.2 billion. “We expect this higher revenue to result in earnings that exceed our previous expectations, given our ambition to exit the year with adjusted EBITDA margins 200 basis points higher than in the fourth quarter of 2021,” Le Peuch said. Shares have gained 12% in the year to date, while the S&P 500 SPX, -0.93% has fallen 16%.

This article was originally published by Marketwatch.com. Read the original article here.

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