Schlumberger reports higher profit as drilling activity increases

[April 22, 2022]  (Reuters) - Schlumberger reported a higher first-quarter profit on Friday, as rising oil prices boosted the demand for oilfield services and equipment needed to drill and raise production.

The exterior of a Schlumberger Corporation building is pictured in West Houston January 16, 2015. REUTERS/Richard Carson/File Photo

Oil prices have climbed to their highest in more than a decade during the quarter as Russia's invasion of Ukraine upended global supply dynamics. U.S. oil is around $102 a barrel, while Brent is trading at $106.5 a barrel.

Strong prices have encouraged drilling activity, lifting the U.S. rig count to 673 at the end of the first quarter, up almost 15% from late 2021, according to Baker Hughes data.

The company also approved 40% increase in the quarterly cash dividend to 17.5 cents per share.

The company posted net income of $510 million, or 36 cents per share, in the three months ended March 31, compared with $299 million, or 21 cents per share, a year earlier.

(Reporting by Shariq Khan and Rithika Krishna in Bengaluru; Editing by Arun Koyyur)

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