Schlumberger Limited Q1 Profit Beats, But Revenue Misses As Int'l Drags

Schlumberger Limited (NYSE: SLB) early Friday posted mixed first quarter earnings results, as the oil & gas industry continues its slow recovery from its biggest decline in history.

Written by StockNews.com

The Houston-based oilfield services provider reported:

  • Q1 earnings per share (EPS) of $0.25, which was in-line with the Wall Street consensus estimate of $0.25.
  • Revenues rose 5.7% from last year to $6.89 billion, missing analysts’ view for $6.98 billion, however.
    • North America revenues rose amid higher shale activity, while offshore activity declined.
    • SLB’s Drilling Group revenue fell 1% sequentially to $2.0 billion, hurt by pricing pressures overseas.

The company commented via press release:

“As we begin the recovery from one of the deepest downturns on record, we see four areas as critical for the industry to restore its strength and advance its capabilities. They are:

  1. the need for higher E&P spending to meet growing hydrocarbon demand over the coming years;
  2. the need to protect and encourage investments in R&E throughout the entire oil and gas value chain;
  3. the need for new business models that foster closer technical collaboration and commercial alignment between operators and suppliers;
  4. and the need for broader and more integrated technology platforms that combine hardware, software, data, and expertise.”

Schlumberger Limited shares rose $0.23 (+0.30%) in premarket trading Friday. Year-to-date, SLB has declined -8.30%, versus a 5.74% rise in the benchmark S&P 500 index during the same period.

SLB currently has a StockNews.com POWR Rating of B (Buy), and is ranked #3 of 52 stocks in the Energy – Services category.

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