Olivier Le Peuch
Chief Executive Officer at Schlumberger
Thank you, ND. Good day, ladies and gentlemen. Thank you for joining us on the call. In my prepared remarks today, I will cover three topics, starting with our second quarter results and our latest view of the macro environment. Thereafter, I will conclude with our outlook for the second half of the year and its compelling attributes, which are very supportive of our raised guidance for the full year. The second quarter was a defining moment in the overall trajectory of the year, with significant growth in revenue, margin expansion and earnings per share.
Our execution was solid, and directionally, all trends were positively in our favor: Strong international activity growth and steady drilling momentum in North America, sustained offshore recovery and the broadening impact of improved pricing. We leverage the power of our core, our global footprint and differentiated technology to seize widening industry activity, demonstrating our ability to capture growth in every land and offshore basin from North America to most remote international basin.
This was reflected in the broad dimension of growth in our second quarter results, as customers stepped up activity with a focus on increased performance and production. Overall, we effectively harness these positive dynamics and delivered very strong sequential quarterly revenue and earnings growth. In addition to the details provided in our earnings press release this morning, let me reiterate some performance highlights from the quarter. We recorded 14% revenue increase, the largest sequential revenue increase in more than a decade, as revenue growth exceeded rig count increase, both internationally and in North America.
Year-on-year revenue growth accelerated to 20%, further sustaining robust growth momentum with a visible inflection in international markets at 50% growth over same period last year. Growth was very broad across all dimensions: area, divisions, land and offshore, with spending visibly higher across all customer types. Internationally, sequential growth was recorded in all of our Middle East and Asia units and all of Latin America, and ECA growth was pervasive across Europe, Scandinavia and West Africa. In North America, we continue to post very solid growth offshore and onshore and on increased drilling and completions activity.
The rise of offshore activity, particularly deepwater, was a key driver for our second quarter second growth in most regions and in support of all divisions. Globally, all four divisions posted double-digit revenue growth and expanded margins sequentially, resulting in the highest quarterly operating margins level since 2015. In addition, another feature of the quarter was broadening pricing improvement, impacting all divisions, geographies and operating environment. Finally, the quarter also marked a number of new contract wins and an increase in backlog for production systems and our real equipment business, another leading indicator of the strength of activity pipeline ahead of us.
Notably, price improvement is also being reflected in production system backlog, which is significant for its later cycle implication for sustained margins expansion on an overall portfolio basis. To sum up, the second quarter emphasizes our clearly differentiated operational performance, strategic execution and financial results, both in North America and internationally. We have very strong momentum and have secured a solid pipeline of activity ahead of us. I'm very proud of the entire Schlumberger team for delivering these exceptional results and demonstrating our unique value proposition for both our customers and our shareholders.
Turning now to the macro; first, energy security and urgency to establish more diverse and reliable source of oil and gas supply has become increasingly apparent through the year, exacerbated by the effect of ongoing conflict in Ukraine and a notable increase in periodic supply disruptions in certain regions. Second, supply and excess spare capacity remains very tight as recent OPEC and IEA demand outlooks for '22 and '23 remain constructive, continuing to suggest a call on supply from North America and a more significant call on supply from the international basins. Third, despite near-term concerns of a global economic slowdown, the combination of energy security, favorable breakeven price and the urgency to grow long-term oil and gas production capacity will continue to support strong upstream E&P spending growth.
Consequently, we are witnessing a decoupling of upstream spending from potential near-term development volatility, resulting in resilient global oil and gas activity growth in 2022 and beyond. Additionally, the factors supporting pricing tailwinds, more specifically the tightening service supply capacity, both in land, and increasingly, in international markets, will continue to ops on the defining characteristics of this up cycle and will support both revenue growth and margin expansion, more than offsetting inflation. Looking more specifically at the second half of the year we see very robust activity dynamics characterized by distinct acceleration of investments in the international basins and the continued strengthening of our offshore activity as all operators, including IOCs, step-up spending.
The energy security situation continues to drive structural activity increase, resulting from the increased focus on short-term production and the mid to long-term capacity expansion across oil and gas plays. In addition, we also expect further exploration and appraisal activity and the pricing dynamics experience so far to add further support to both the growth trajectory and the margins performance during the second half. This positive undercurrent will lead to an attractive mix and an increase in short and long-cycle international projects, complementing already robust short cycle activity in North America. Directionally, during the second half of the year, we expect a strong continuation of growth in the core led by production systems for the rest of the year with digital and integration benefiting from typically seasonally strong year-end sales.
Also, and as a result of the rotation of investment toward international basins, we anticipate our highest growth rate during the second half to occur internationally, setting up a very nice backdrop for 2023 by outlook. Based on this, we expect our H2 revenue this year to grow at least high teens compared to the same period last year. Full year revenue growth will therefore be in the high teens, transiting revenue of at least $27 billion for 2022. Furthermore, our adjusted EBITDA, not dilute dollar terms, will increase by at least 25% for the full year of 2022 when compared to 2021.
Indeed, 2022 is stepping up to be an outstanding year for Schlumberger. The power of our core, our digital and decarbonization leadership and the expensive attribute of this upcycle enabled us to leverage focused North America business with an unparalleled international breadth. The combination which favorably exposed Schlumberger to durable top line growth, earnings and further margin expansion potential that is unmatched in the sector. Beyond this, the momentum we are building through the second half of the year and the exit rates that we have achieved bode very well for our 2023 outlook and financial ambition, both of which we will share in more details at our investor conference in November.
I look forward to seeing many of you in person at this event. I will now turn the call over to Stephane.