Schlumberger reports higher profit as drilling activity increases By Reuters

(Reuters) – Schlumberger (NYSE:) reported a higher first-quarter profit on Friday, as rising oil prices boosted the demand for oilfield services and equipment needed to drill and raise production.

Oil prices have climbed to their highest in more than a decade during the quarter as Russia’s invasion of Ukraine upended global supply dynamics. U.S. oil is around $102 a barrel, while is trading at $106.5 a barrel.

Strong prices have encouraged drilling activity, lifting the U.S. rig count to 673 at the end of the first quarter, up almost 15% from late 2021, according to Baker Hughes data.

The company also approved 40% increase in the quarterly cash dividend to 17.5 cents per share.

The company posted net income of $510 million, or 36 cents per share, in the three months ended March 31, compared with $299 million, or 21 cents per share, a year earlier.