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Guyana contributed to Schlumberger’s US$8B profit within three months
Kaieteur News – United States firm, Schlumberger, has revealed that Guyana is among several countries that contributed to its US$8.10B profit recorded within three months (March 31 to June 30, 2023).
Schlumberger is the company involved with the handling of radioactive materials, used during production activities.
On July 21, Schlumberger revealed that revenue of the US$8.10 billion profit reveals a sequentially increase. It was stated that in the international markets, the investment momentum of the past few years is accelerating. The company noted that this is supported by resilient long-cycle developments in Guyana, Brazil, Norway and Turkey; production capacity expansion in the Middle East, notably in Saudi Arabia, United Arab Emirates (UAE) and Qatar; the return of exploration and appraisal across Africa and the Eastern Mediterranean; and the recognition of gas as a critical fuel source for energy security and the energy transition.
The company’s Chief Executive Officer (CEO), Olivier Le Peuch commented, “I am very pleased with our second-quarter results, which reflect significant growth in the international markets, particularly in the Middle East & Asia, and offshore. North America revenue also grew sequentially benefiting from our agility across the most resilient basins and market segments, although the rig count in the area declined.”
According to Le Peuch, “As the up-cycle continues to unfold, we are excited about the opportunities for our business, with international- and offshore-led growth fueling strong pretax segment operating margin expansion and cash flows as highlighted in this quarter’s results. We are very well positioned in these markets, as international represents nearly 80% of our global revenue, and offshore constitutes approximately half of that. Both sequentially and year on year, we saw broad international revenue growth that resulted in margins expanding across all divisions and geographical areas.”
The CEO underscored that compared to the same period a year ago, international revenue grew 21%, outpacing North America which increased by 14%.
He said, “Year on year, revenue grew 20% and pretax segment operating margin expanded 240 basis points (bps), representing the tenth straight quarter that we have increased our pretax segment operating margin year on year. This was driven by the international markets, where we posted our highest year-on-year incremental margin in the last three years, demonstrating the earnings power of our operations in these markets.”
A few months ago, Kaieteur News reported that the company is moving its regional headquarters from Trinidad to Georgetown, Guyana.
Schlumberger had established an office at Houston, Greater Georgetown, from where it carried out it operations in country, when it was hauled before the local Court by citizens, challenging the safety of a radioactive facility project. In fact, the High Court had issued an order for the operations to be ceased.
In justifying the move, the company explained that during the initial phase of exploration for oil and gas offshore Guyana, it operated remotely from an established base in Trinidad.
“However, it quickly became obvious, as the successful exploratory wells indicated very large commercial deposits, that a permanent base in Guyana to support these operations was essential. At the same time, Schlumberger decided that the importance of Guyana as a future regional leader in oil and gas production justified moving our regional Headquarters to Georgetown and to maximize the participation of the Guyanese economy and population in their operations,” the company stated.
It is understood that the new regional headquarters has been under development by Schlumberger over the last four years in what was previously the old Gafoors Houston Warehousing property. The property currently functions as Schlumberger’s Regional Headquarters and Offshore Services Base.
The facility includes a Liquid Mud Plant, Dry Bulk Facility, and Workshop facilities to support the offshore drilling and production operations by the Esso Exploration and Production Guyana Limited (EEPGL) and other oil and gas operators.
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