Services companies turn good profit despite falling oil prices

Financial chart
Source: DollarPhotoClub

Despite the falling oil prices and the overall turmoil in the energy markets, large oilfield services companies still show they can turn a good profit.

Schlumberger, the world’s largest oil services firm, increased profits in the third quarter of this year, thanks to the growing demand for drilling services. The company, like other companies providing drilling services, has benefited from a growing number of contracts for work on shale gas and oil exploration.

The company has announced that in the third quarter of this year, its revenue increased to 12.6 billion dollars. Compared to the same period last year, Schlumberger’s revenues increased by 9 per cent. The company’s profits stood at 1.95 billion dollars. In the same period last year the company earned 1.72 billion dollars making this a 13 per cent year-on-year increase in profits. The company’s good financial results are the result of a growing demand for services related to the extraction of crude oil and natural gas from unconventional sources.

Meanwhile, Baker Hughes – the third largest American company providing drilling services to the oil and gas industry – reported a 10 per cent increase in profits, in the third quarter of this year.

According to the company’s financial statement, its net profit rose to 375 million dollars, recording a 10 per cent jump in profits compared to the same period last year, when the company’s profits amounted to 341 million dollars.

Schlumberger’s and Baker Hughes’ financial results show that in spite of falling oil prices worldwide, oil companies and services providers continue to profit from the rampant shale extraction in the U.S.

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