Schlumberger (Attractive*), the world’s largest oilfield-services provider, said sales increased 11% to $11.61bn as higher crude prices led to more drilling worldwide. Earnings per share jumped to $1.29 from $1.07 a year earlier, beating market expectations of $1.24.
The management remains “positive for the outlook for the industry”. Baker Hughes (Unattractive*) reported equally solid earnings. Adjusted profit per share of 81 cents was above the 78 cents and revenues gained 8% to $5.79bn in Q3. However, within the U.S. energy sector, we keep our preference for Schlumberger and Chevron (both attractive*), which are cheaper valuation-based.