Schlumberger on the Griddle - TheStreet

Updated from 7 a.m.

Schlumberger

(SLB) - Get Report

shares got walloped Friday after the oil services giant posted an unexpected revenue decline in North America.

The Houston-based company's third quarter beat Wall Street's third-quarter earnings and revenue estimates, as the company's overseas operations continue to pump out big growth numbers. For the quarter ended Sept. 30, Schlumberger said earnings jumped 35% from a year earlier on a 19% revenue gain.

But revenue in North America dropped 3% from a year ago. The company cited a sharp revenue drop in the Gulf of Mexico and weather-related outages.

Shares, which had doubled over the last year heading into the report, dropped $11.50 to $100.12.

For the quarter ended Sept. 30, the Houston-based oil services company made $1.35 billion, or $1.09 a share, up from the year-ago $1 billion, or 81 cents a share. Revenue rose to $5.93 billion from $4.95 billion a year earlier.

Analysts surveyed by Thomson Financial were looking for a $1.06-a-share profit on revenue of $5.89 billion.

"Growth in the third quarter was driven by international markets particularly in Latin America, Russia, China and Indonesia," said CEO Andrew Gould. "In North America, increased activity in Canada was offset by weaker pricing for pressure pumping in certain regions on land, and a sharp revenue drop in the Gulf of Mexico due to the departure of several rigs to overseas locations and the loss of approximately 15 operating days due to precautionary stand downs for approaching weather systems."

Schlumberger's strong numbers come on a day when oil prices hit a new high at $90 a barrel, as demand for refined products remains robust and the dollar weakens against foreign currencies. The company's gains come even as big refiners such as

Valero

(VLO) - Get Report

and

Chevron

(CVX) - Get Report

have warned of narrowing refining margins.