By Rithika Krishna and Liz Hampton

(Reuters) -Prime oilfield providers agency Schlumberger (NYSE:) reported the next first-quarter revenue on Friday and elevated its dividend by 40%, as rising oil costs boosted demand for providers and gear.

Oil costs climbed to their highest in additional than a decade throughout the quarter as Russia’s invasion of Ukraine upended international provide dynamics. The worldwide rig depend was as much as 815 on the finish of March, a rise of 100 rigs from a yr in the past, based on Baker Hughes.

“The confluence of elevated commodity costs, demand-led exercise progress, and vitality safety are leading to one of many strongest outlooks for the vitality providers business in current occasions,” Schlumberger Chief Govt Officer Olivier Le Peuch mentioned in a press release.

He anticipates vital progress within the second half of the yr and that the corporate will exit 2022 with EBITDA margins at the very least 200 foundation factors increased than the fourth quarter of 2021.

Schlumberger additionally authorized a 40% improve in its quarterly money dividend to 17.5 cents per share.

Shares have been up 2.8% in pre-market buying and selling to $41.79.

U.S. West Texas Intermediate is buying and selling round $102.40 a barrel whereas is buying and selling at $106.90, each down about 1.3%.

The corporate’s whole income rose 14% to $5.96 billion within the quarter, with worldwide income up round 10% led by Latin America, resulting from increased drilling in Mexico, Ecuador, Argentina, and Brazil. In its Europe, CIS and Africa division, income fell 12% sequentially resulting from a seasonal decline in exercise and depreciation of the Russian rouble.

The corporate posted adjusted internet earnings of $488 million, or 34 cents per share, within the three months ended March 31, in contrast with $299 million, or 21 cents per share, a yr earlier. Analysts had anticipated earnings of 33 cents per share, based on Refinitiv IBES.