Top oilfield firm Schlumberger reported an increase in third-quarter adjusted income on Oct. 22 supported by higher demand for its services and equipment, as producers capitalize on a rebound in crude prices.

Global oil prices have climbed nearly 64% since the start of 2021 to over $85 a barrel on the back of a vaccine-fueled demand recovery. The worldwide rig count was 1,448 at the end of the third quarter, compared with 1,019 a year earlier, according to Baker Hughes data.

"The industry macro fundamentals have visibly strengthened this year, particularly in recent weeks with demand recovery, oil and gas commodity prices at recent highs, low inventory levels and encouraging trends in pandemic containment efforts," Schlumberger CEO Olivier Le Peuch said in a statement, adding he expects those conditions to materially drive investment over the coming years.

Schlumberger reported net income of $550 million, or 39 cents per share, for the quarter, edging past Wall Street estimates of 36 cents each, according to Refinitiv IBES. Revenue of $5.8 billion fell short of analysts expectations of $5.9 billion, but was up 11% year-over-year.

Excluding charges & credits, net income came in at $514 million, or 36 cents per share, for the three months ended Sept. 30, higher than $228 million, or 16 cents per share, a year earlier.

Wall Street analysts said the results were positive, pointing to improved higher margins, which topped expectations.

"These results are a wonderful breath of fresh air," analysts for investment firm Tudor, Pickering, Holt & Co wrote in a note that called the start to oilfield earnings season "rough".

Rivals Halliburton and Baker Hughes both posted quarterly profit from year-ago losses this week but results were snagged by Hurricane Ida-led disruptions and supply chain woes.

Its shares were flat in pre-market trading at $34.30. They are up 57.12% year-to-date, outpacing gains in Baker Hughes and Halliburton. 

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