SLB tops quarterly profit estimates, signals readiness to expand in Venezuela

By Tanay Dhumal and Arathy Somasekhar

Jan 23 (Reuters) - SLB SLB.N beat Wall Street estimates for fourth-quarter profit on Friday, as the world's top oilfield services provider benefited from the ChampionX acquisition and said it can rapidly ramp up activities in Venezuela.

Shares were up 1.3% at $49.96 in morning trade.

Quarterly revenue from North America, which accounted for around 22% of the total, rose by about 26% as SLB's acquisition of ChampionX last July helped offset weak activity in the region.

ChampionX, which helped add production chemicals and artificial lift technologies to SLB's portfolio, contributed $879 million to total revenue and $206 million in adjusted core profit in the fourth quarter.

Revenue from its international business was largely flat, with gains in Latin America, Europe and Africa largely offset by weakness in Middle East and Asia.

North America land activity will continue to decline year-over-year, CEO Olivier Le Peuch said in a post-earnings call.

SLB now expects a sequential decline in revenue by high-single-digits in the first quarter, reflecting a seasonal slowdown and estimates adjusted core profit will decrease by 15%-20%.

The company forecast full revenue to be between $36.9 billion and $37.7 billion if oil prices per barrel remain between $50 and low $60 range.

SLB also raised its quarterly dividend by 3.5% and said it expects to exceed $4 billion in shareholder returns, through dividends and share repurchases in 2026.

The company reported an adjusted profit of 78 cents per share for the three months ended December 31, compared with analysts' average estimate of 74 cents according to data compiled by LSEG.

The world's largest oilfield services operator said it can rapidly ramp up activities in Venezuela if the appropriate licensing, safety parameters and compliance measures are in place.

SLB said it is currently the only international oilfield service company operating in Venezuela and it had maintained active facilities, equipment and local personnel on the ground in the country.

SLB shares have risen 23% since the U.S. capture of Venezuelan President Nicolas Maduro on January 3, with investors betting that the company will be a big winner as the South American country's dilapidated oil sector is rebuilt.