SLB’s Le Peuch sees no major rebound in North America activity

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By Tanay Dhumal

(Reuters) -SLB does not expect to see a significant pickup in North American drilling activity due to high production costs at some shale basins, its top boss said on Friday, although the region contributed to its third-quarter profit beat.

CEO Olivier Le Peuch’s cautious tone comes as the U.S. Energy Information Administration predicts oil prices to average $62 per barrel in the fourth quarter and $52 in early 2026 amid rising inventories.

The CEO, however, said the quarter was “resilient” despite an oversupplied oil market and geopolitical uncertainty. He also expects international markets to lead the next rebound once supply and demand rebalance.

That recovery would be driven by sustained investment in oil capacity, gas expansion projects and a constructive outlook for deepwater developments, Le Peuch added.

Shares of the world’s largest oilfield services provider fell 3% in midday trading.

SLB’s international revenue, which makes up about 80% of its total, fell 7% to $6.92 billion in the third quarter, weighed down by disruptions in Ecuador.

North America revenue rose 14% to $1.93 billion due to the inclusion of ChampionX’s contributions to its earnings.

The $7.75 billion acquisition of ChampionX helped offset softer oilfield activity across several other regions.

Excluding the deal’s impact, global revenue declined 9% from a year earlier.

Wall Street analysts expect fourth-quarter revenue to rise, driven by ChampionX, international markets and continued strength in the newly disclosed digital segment, though underlying global upstream activity remains soft.

SLB said it did not plan further consolidation beyond recent strategic add-ons.

The company reported an adjusted profit of 69 cents per share, compared with analysts’ estimate of 66 cents.

(Reporting by Tanay Dhumal and Arunima Kumar in Bengaluru; Editing by Anil D’Silva and Arun Koyyur)