SLB third-quarter profit meets estimates amid strength in digital products segment

Investing.com -- SLB (NYSE:SLB ) has posted third-quarter profit that was in line with analysts' estimates, as the oilfield service provider said it was boosted by solid demand for its digital products and a drive to reduce costs.

Houston, Texas-based SLB reported adjusted earnings per share of $0.89 in the three months ended on Sept. 30, compared to estimates of $0.89, according to Bloomberg consensus projections.

Revenue, meanwhile, jumped by 10% versus the year-ago period to $9.16 billion. Analysts had seen the figure at $9.27 billion.

In a statement, Chief Executive Officer Olivier Le Peuch said the results were fueled by "our ongoing focus on cost optimization, greater adoption of our digital products and solutions, and the contribution of long-cycle projects in deep water and gas."

Le Peuch added that the company faced headwinds from soft "short-cycle activity growth" and cautious spending by some international producers due to lower oil prices and ample global supply. Revenue growth in the Middle East and Asia and offshore North America was also offset by a decline in Latin America and "steady" operations in Europe and Africa, Le Peuch said.

SLB, which along with oilfield services offers digital solutions for subsurface and surface engineering, said its digital segment powered its quarterly returns, expanding by 25% year-on-year. The group said the increase was boosted by more customers "embracing digital technology" in order to shorten planning cycle times, bolster automation, and "extract efficiency".

Adjusted earnings before interest, taxes, depreciation, and amortization margin came in at 25.6%, a 55-basis point sequential uptick.

Shares in SLB edged higher in premarket US trading following the earnings announcement on Friday.

Source: Investing.com