Thursday 21 June 2018

Schlumberger revenue rises to $11 billion

New York, January 19, 2013

Schlumberger Limited yesterday reported fourth-quarter earnings just above recently reduced expectations, lifted by strong growth in oil and gas services beyond the shores of North America.

Schlumberger, the oilfield services sector leader, posted its fifth straight estimate-beating quarterly profit as growth in the deepwater Gulf of Mexico, Latin America, the Middle East and Asia made up for a slowdown on North American land.

International markets accounted for about two-thirds of its total 2012 revenue of $42.15 billion, which has helped the company build on its lead over Halliburton.

Fourth-quarter net income fell to $1.37 billion, or $1.02 per share, from $1.41 billion, or $1.05 per share, a year before. Excluding items, earnings were $1.08 a share versus the analysts' view of $1.07, according to Thomson Reuters I/B/E/S.

Revenue increased eight per cent to $11.17 billion, comfortably beating the average estimate of $10.82 billion.

Schlumberger shares rose more than 2 per cent early yesterday, while Halliburton was up more than 1 per cent.

Oil and gas companies have slowed onshore exploration in North America as the going prices for natural gas and natural gas liquids, such as butane and propane, remain low.

While Schlumberger chief executive Paal Kibsgaard sees the negative impact of the glut still weighing on margins in the region, he expects the number of North American rigs to rise by between 100 and 150 in the first quarter.

Kibsgaard said Saudi Arabia's rig count would rise by about 25 rigs this year to 160, though global oil demand would grow at a similar pace to 2012 and spare capacity would be unchanged.

Kibsgaard forecast client spending in international markets would rise 10 per cent, compared with no growth in North America, but Schlumberger earnings should grow by double digits in 2013.

"This is assuming no major setback in the global economy and also no further significant setbacks in North America," Kibsgaard told analysts on a conference call.

Schlumberger cut its 2013 capital budget to $3.9 billion from $4.7 billion last year.

Latin America revenue rose 13 per cent, while the Middle East and Asia jumped a combined 21 per cent, compared with a 3 per cent drop in North America.-Reuters

Tags: Schlumberger | income |


calendarCalendar of Events