Schlumberger Profit Tops Estimates, Revenue Misses

(RTTNews) - Oilfield services provider Schlumberger Ltd (SLB) on Thursday reported first-quarter net earnings of $975 million or $0.76 per share compared with $1.53 billion or $1.21 per share last year.

Results for the quarter included restructuring and other charges of $439 million.

Excluding items, adjusted earnings for the quarter were $1.06 per share.

Revenues for the quarter were lower by 9% at $10.25 billion compared with $11.24 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.91 per share on revenues of $10.46 billion for the quarter. Analysts' estimates typically exclude special items.

Schlumberger CEO Paal Kibsgaard said the quarter was hurt by weakeness in North American land activity and associated pricing pressure.

International operations were impacted by reduced customer spend in addition to seasonal effects in the Northern Hemisphere and the fall in value of the Russian ruble and the Venezuelan bolivar, Kibsgaard said.

Looking ahead, Kibsgaard noted that while the global economy continues to recover, the significant reductions in E&P spend are starting to impact supply in both North America and internationally, and supply is expected to tighten further in the second half of the year.