Schlumberger Ltd. (SLB) first-quarter earnings fell 3.2% as
weaker revenue from North America continued, although the top line
improved on stronger international business.
Schlumberger, the world's largest oil-field-services company,
has seen its revenue soar over the past three years as ramped up
activity in areas like the deepwater U.S. Gulf of Mexico helped to
offset declining onshore revenue in North America. The company
earns more than two-thirds of its revenue internationally, but
delays in Europe, the Commonwealth of Independent States and Africa
has pressured Schlumberger's bottom line of late.
Schlumberger reported a profit of $1.26 billion, or 94 cents a
share, down from $1.3 billion, or 97 cents a share, a year earlier.
The most-recent quarter included charges of seven cents a share,
while the year-earlier quarter included one cent. Revenue jumped
7.6% to $10.67 billion.
Analysts polled by Thomson Reuters had most recently forecast
per-share earnings of 99 cents a share on revenue of $10.73
billion.
Operating margin fell to 15.7% from 17%.
Oil-field services revenue from North America, the region which
generates most of the top-line, fell 4.2% to $3.29 billion.
The Europe/Commonwealth of Independent States/Africa region's
revenue climbed 11% while the Middle East and Asia posted a 21%
increase. Latin America revenue was up 7.8%.
Shares closed Thursday at $71 and were inactive premarket. The
stock is up 2.5% since the beginning of the year.
Write to Melodie Warner at melodie.warner@dowjones.com
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