Schlumberger Posts Strong Earnings, Warns of Waning North American Activity – TheStreet.com
Schlumberger Ltd. (SLB) reported third quarter earnings in line with analyst expectations Friday, Oct. 20, but the company warned that investment in North America is moderating.
Shares tumbled 3.64% on heavy trading volume to $62.17 early Friday afternoon.
The Houston-based oilfield services giant reported earnings of 42 cents per share, which is exactly what analysts polled by FactSet expected.
Schlumberger had sales of $7.905 billion for the third quarter, which came in just above analysts’ forecast of $7.903 billion. Net profit rose over 200% year-over-year to $545 million this quarter versus $176 million in the same period last year.
Schlumberger said its North American business continues to benefit from strong shale drilling, but investment in the region is moderating.
“In the U.S. Gulf of Mexico, activity continued to weaken in the third quarter, and the outlook remains bleak for this region based on current customer plans,” Schlumberger said in a statement.
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