By Melodie Warner
Schlumberger Ltd.'s (SLB) fourth-quarter earnings fell 3.7% amid
merger and integration costs and lower revenue from its
Europe/Commonwealth of Independent States/Africa region.
Schlumberger, the world's largest oil-field-services company,
has seen its revenue soar in recent quarters as exploration and
production companies ramped up activity in areas like the
deep-water U.S. Gulf of Mexico and vast oil-rich shale formations
around the U.S. But the company warned last month its
fourth-quarter earnings would take a hit from weaker-than-expected
North America activity and delays in Europe, the Commonwealth of
Independent States and Africa.
Schlumberger reported a profit of $1.36 billion, or $1.02 a
share, down from $1.41 billion, or $1.05 a share, a year earlier.
Excluding items such as merger and integration costs, per-share
earnings from continuing operations fell to $1.08 from $1.10.
Revenue jumped 8.5% to $11.17 billion.
Analysts polled by Thomson Reuters had most recently forecast
per-share earnings of $1.07 on revenue of $10.82 billion.
Operating margin fell to 16.2% from 18.2%.
Oil-field services revenue from North America, the region which
generates most of the top-line, rose 3.6% from the third quarter to
$3.41 billion.
The Europe/Commonwealth of Independent States/Africa region's
revenue declined 1% from the prior quarter while the Middle East
and Asia posted a 9.6% increase. Latin America revenue was up 11%,
sequentially.
Shares closed Thursday at $73.37 and were inactive premarket.
The stock has gained 3.9% over the past year.
Write to Melodie Warner at melodie.warner@dowjones.com
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