Sales picking up for oilfield service groups

April 24, 2018
Schlumberger, Halliburton, and BHGE have reported a combined 15% growth in revenues for 1Q 2018 compared to the same period last year, according to analyst Rystad Energy.

Offshore staff

OSLO, Norway – Schlumberger, Halliburton, and BHGE have reported a combined 15% growth in revenues for 1Q 2018 compared to the same period last year, according to analyst Rystad Energy.

Their oilfield service sales increased by 21% on average, although theiroilfield equipment sales were only 1% higher.

Audun Martinsen, vice president of Oilfield Service Research at Rystad, said: “With the great surge of activity in short cycle businesses – like US shale and the slower-to-respond equipment market, typically in offshore – this will also be directionally in line with what we expect the trend to be in 2018 as a whole.”

The analyst’s latest Oilfield Service Report predicts that the global well service market will grow by 12% this year, much of this driven by the US shale well count.

Outside North America demand looks set to expand by 7% this year, with Europe and Africa accounting for the largest growth (more than 10%). At the other end of the scale, demand in Latin America is likely to fall by 1%.

“For oilfield service companies, this year will be all about finding the right exposure to countries and product lines, sizing their capacity and weighting market share growth versus service pricing,” Martinsen concluded.

“There is still a battle out there among the suppliers to grab a share of the rise in activity, but this will come at a cost. Choices will have to be made between improving margins or improving revenues.”

04/24/2018