HOUSTON: Oilfield services giant Schlumberger NV issued a bullish forecast for 2021 on Friday as second-quarter profit topped estimates due to surging margins, with a rebound in oil prices boosting demand for its software and equipment.
Energy services firms are benefiting from a resumption of drilling driven by rising crude prices, which are up 18 percent in the latest quarter and 42 percent since the start of 2021.
Still, oilfield activity levels remain far below pre-pandemic levels and oil demand could face a threat as a resurgence of infections from coronavirus variants prompts fresh restrictions in some parts of the world.
Schlumberger officials offered an optimistic outlook for the rest of the year, and said they expect further growth and margin expansion in the company’s North American and international operations.
International revenue could rise at a double-digit percentage rate compared with year-ago levels, officials said.
Double-digit sequential revenue growth was posted in Qatar, UAE, and East Asia from higher reservoir performance and well construction activity, Schlumberger said in a statement.
ADNOC Offshore awarded Schlumberger a large, five-year contract, valued at $381 million, for integrated rigless services for the artificial islands offshore UAE, the first contract awarded by ADNOC to integrate all rigless services, including high-rate stimulation, production logging, surface testing, and coiled tubing.
In Iraq, Schlumberger was awarded a contract, valued at $480 million, to drill 96 wells in southern Iraq for ExxonMobil, which operates the giant West Qurna 1 Field owned by Basra Oil Company.
In the Kingdom of Bahrain, Schlumberger has been awarded a three-year, production enhancement contract-valued at $150 million in the Bahrain Field.
Its North American business, which fell 1 percent versus a year ago, could “surprise to the upside” due to spending by private operators, Chief Executive Olivier Le Peuch said.
“Industry projections of oil demand reflect the anticipation of a wider vaccine-enabled recovery, improving road mobility, and the impact of various economic stimulus programs,” Le Peuch said, cautioning the COVID-19 pandemic continues to threaten the demand recovery.
US oil output may not reach pre-pandemic levels until after 2022, Le Peuch said, adding that international supply and demand conditions would push oil and gas activity beyond 2019 levels in the next two to three years.
Rival Halliburton this week also delivered a bullish outlook for the oil industry recovery, while Baker Hughes missed earnings expectations following a hit from restructuring charges.
Schlumberger reported net income of $431 million, or 30 cents per share, for the three months to June 30, compared with $299 million, or 21 cents per share, in the first quarter. Wall Street analysts had anticipated earnings of 26 cents per share, according to Refinitiv IBES.
Operating margins nearly doubled to 14.3 percent, the highest since 2018, led by big gains in its software and reservoir performance units. Those gains, which marked the fourth consecutive quarter of margin expansion, reflected past cost-cutting and big year-over-year software revenue increases.
Analysts for investment firm Tudor Pickering Holt & Co. said the results were strong, but lamented that Schlumberger’s stock — along with other oilfield companies — had continued to underperform.
Middle East helps Schlumberger to profit beat as margins soar on revenue gains
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Middle East helps Schlumberger to profit beat as margins soar on revenue gains
- Schlumberger gives optimistic outlook for the rest of the year
- Double-digit sequential revenue growth was posted in Qatar, UAE, and East Asia
Oman tourism strengthens as hotel guests hit 2.14m, revenues rise 21%
JEDDAH: Oman’s tourism sector strengthened through November, with hotel guest numbers rising to 2.14 million and revenues at higher-end properties jumping more than 21 percent, supported by events and air travel.
Hotel revenues at three- to five-star properties reached nearly 258 million Omani rials ($670 million), up from 212.4 million rials during the same period in 2024, while average occupancy increased to 55.4 percent from 48.6 percent, according to official data published by the Oman News Agency.
Domestic tourism continued to underpin growth, with Omani guests increasing 7 percent to 791,286. Visitors from Gulf Cooperation Council countries rose 7.4 percent to 195,825, while arrivals from other Arab nations slipped 1.6 percent to just over 94,000.
“These indicators reflect the positive performance of Oman’s hotel sector, supported by the ongoing growth in tourism activity,” the ONA report stated.
International demand strengthened across key markets. Guests from Asia increased by 10 percent to 305,460, and African visitors rose by 19.3 percent to 13,246, while European arrivals jumped 23 percent to 574,243.
Travelers from the US increased nearly 30 percent to 69,697, and arrivals from Oceania surged 35.5 percent to 38,028. African visitors rose 19.3 percent to 13,246.
Growth in leisure travel was complemented by expanding business and events activity. The Oman Convention and Exhibition Center generated a direct economic impact of nearly 15 million rials in 2025, hosting regional and international events that attracted 20,000 participants and investors from around 60 countries, ONA reported.
Said bin Salim Al-Shanfari, CEO of OCEC, said the center’s achievements reflect its role as a national platform that directly supports the economy while enhancing Oman’s competitiveness in conferences, exhibitions, and events.
He highlighted that OCEC hosted over 250 local, regional, and international events, attracting more than 1.9 million visitors, participants, and investors. He also emphasized the center’s support for over 100 small and medium-sized enterprises and graduation ceremonies for 65,000 students, reinforcing its social and economic role.
Cultural and artistic events, including concerts and exhibitions, attracted more than 11,000 visitors, contributing to longer stays and higher hotel occupancy.
The CEO concluded that OCEC is progressing confidently, utilizing strategic partnerships to attract more events and strengthen its role as a hub that connects business, culture, and society while boosting Oman’s regional and international standing.
Air travel data reinforced the recovery trend. Passenger numbers at Muscat International Airport rose 1.8 percent to nearly 11.94 million by the end of November, even as total flights declined 4.1 percent to 84,296.
“The data showed that international flights at Muscat International Airport totaled 75,460, down 5.2 percent, carrying 10.72 million passengers, up 0.7 percent. Meanwhile, domestic flights rose 6.7 percent to 8,836, carrying around 1.22 million passengers, a 12.5 percent increase,” a separate ONA report stated, citing NCSI.
At Salalah Airport, passengers rose 10 percent to over 1.57 million, while total flights increased around 6 percent to 10,237. International flights totaled 4,489, carrying 622,198 passengers, down 0.7 percent, while domestic flights rose 13.6 percent to 5,748, carrying 952,098 passengers, up 18.3 percent.
