SLB increases dividend and buybacks shares after beating quarterly profit targets

SLB increased its quarterly dividend on Friday and boosted its share repurchases after the oilfield services provider reported a better-than expected fourth quarter profit, helped by higher demand of its drilling technology and equipment.

The company increased its quarterly dividend to 3.6% and announced that it had begun an accelerated share purchase program of $2.3 billion worth of stock.

SLB's Chief Executive Officer Olivier Le Peuch said that while upstream investment will be subdued for the near term because of global oversupply we expect the oil supply imbalance to gradually diminish. The company also believes its stock price is undervalued compared to its strength.

SLB shares rose by 2.3% in premarket trading to $42.

The Middle East and Asia helped to boost the 3% growth in its international segment. North America revenue grew 7%.

LSEG data shows that total revenue was $9.28 billion, which is higher than analysts' estimates of $9.18billion.

SLB, after excluding charges and credits for the quarter posted a profit per share of 92 cents, which was higher than the analyst average of 90 cents.

Included in the charges was a restructuration related charge of 223 million dollars.

(source: Reuters)