Services Firms See Us Activity Boost, But Profits Remain Elusive

The world’s leading oil services companies, Schlumberger, Halliburton and Baker Hughes have reshifted their focus to their North American operations after more than two years of cuts. For each the Mideast, their most resilient region through the two lean years, remains core to their revenue.

The three largest listed oilfield services firms have struggled to turn a profit since the beginning of 2015. They managed a collective profit of $190mn in Q1 2017, but this compares to a whopping $3.53bn in Q3 2014 just before oil prices tanked.

The key ‘good news’ in the first three months of 2017 has been the sharp upturn in US drilling which has seen 370 rigs added over the last 11 months: Output hit 9.265mn b/d in the third week of April, up 700,000 b/d on last September’s low and the highest level since November 2015. (CONTINUED - 1511 WORDS)


chart 1: Big 3 Oil Services Firms: Little Sign Yet Of A Rise In Revenue ($Bn)...
chart 2: ...But At Least The Losses Have, More Or Less, Been Stemmed (Net Profit, $Bn)
table Services Firms 1Q17 Revenue ($Bn)
chart ...But The Mideast Share Of Each Firm’s Revenue Remains At Well Above Pre-Crash Levels
chart Us Crude Output Gains Set To Continue (Mn B/D) With Oil Rig Count Posting 2-Year High Of 688 In Late April