SLB’s North American Sales Fall for a Second Straight Quarter, and Shares Drop

SLB (SLB) shares fell close to 3% on Friday after reporting demand in North America slowed, and as concerns rose about the potential negative impact on oil supplies from fighting in the Middle East. Shares of rivals in the sector were down as well.

The biggest oilfield services provider reported third quarter fiscal 2023 revenue from North American operations were down 6% sequentially to $1.64 billion, in the second consecutive quarter of declining sales in the region. It was up 6% on a year-over-year basis. International sales came in at $6.61 billion, a 5% gain from the second quarter and 12% rise from 2022.

SLB posted earnings per share (EPS) of $0.78, slightly better than forecasts, but overall revenue of $8.31 billion was short of forecasts.

CEO Olivier Le Peuch said “the market fundamentals remain very compelling for our business.” He added that the oil and gas industry “continues to benefit from a multiyear growth cycle that has shifted to the international and offshore markets,” which he argued was advantageous for SLB.

SLB also indicated that earlier this month it had completed its previously announced agreement with Aker Solutions and Subsea7 to create a new company named OneSubsea, which will focus on undersea production and reserves.

Shares of SLB lost ground on Friday, but were up 13% year-to-date.