Schlumberger (SLB) Q2 Earnings Beat, Revenues Miss Estimates

Oilfield service giant Schlumberger Limited’s (SLB - Free Report) second-quarter 2018 earnings of 43 cents per share (excluding charges and credits) beat the Zacks Consensus Estimate of 42 cents and improved from the year-ago quarter’s figure of 35 cents.

Schlumberger Limited Price, Consensus and EPS Surprise

Schlumberger Limited Price, Consensus and EPS Surprise | Schlumberger Limited Quote

The company posted total revenues of $8,303 million, which improved from $7,462 million in the prior-year quarter. However, the figure lagged the Zacks Consensus Estimate of $8,337 million.

The results were driven by a rebound in drilling activities in Russia and the North Sea. Higher demand for directional drilling techniques, especially in the domestic onshore market supported the numbers. However, it was partially offset by increased costs related to the mobilization of resources for new projects internationally

Segmental Performance

Drilling Group and Production Group registered year-over-year increase in revenues, while Reservoir Characterization results declined from the year-ago quarter’s tally.

Drilling Group revenues increased primarily on contributions from the international market. Rebound in seasonal works beyond the Northern Hemisphere contributed to growth. The commissioning of new projects in India, Mexico and Middle East, North America and Australia supported the top line. However, the positives were partially negated by higher costs related to the mobilization of resources for new projects internationally.

Results in the Production Group were positively impacted by higher hydraulic fracturing work in the domestic land market. Pricing recovery in the North American land areas, improved unconventional land works along with higher activities in China and Russia led to the improvement. Moreover, stimulation and coiled tubing work along with higher completions product sales aided growth in Saudi Arabia.

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