Schlumberger Profit Jumps - TheStreet

Schlumberger Profit Jumps

The oil driller beats targets.
Publish date:

Updated from 6:28 a.m. EDT


(SLB) - Get Report

posted a 40% year-on-year profit gain for the second quarter, beating analysts' estimates handily.

The Houston-based oil driller made $1.26 billion, or $1.02 a share, for the quarter ended June 30, up from the year-ago $857 million, or 69 cents a share. Revenue rose 20% to $5.64 billion from $4.69 billion a year earlier.

Analysts surveyed by Thomson Financial were looking for a 95-cent profit on sales of $5.54 billion.

Oilfield services revenue of $4.97 billion increased 5% sequentially and 21% year-on-year. Pretax business segment operating income of $1.51 billion climbed 8% sequentially and 33% year on year.

WesternGeco revenue of $665 million decreased 6% sequentially but increased 18% year on year. Pretax business segment operating income of $216 million fell 19% sequentially but rose 28% from last year.

"Second-quarter results were driven by the increasing pace of international activity," Chairman and CEO Andrew Gould said in a press statement. "Sequential revenue growth in oilfield services accelerated in all areas except North America where higher activity on land and in the Gulf Coast was not sufficient to completely offset a significant downturn in Canada."

The company saw the greatest revenue growth in the Middle East and Asia, where its revenue of $1.21 billion was 11% higher than the first quarter and 32% above the same period a year ago.

Schlumberger's revenue from North American operations decreased 3% since last quarter and increased 6% year on year.

"In the short term, the future natural gas activity in North America remains uncertain as record imports of LNG, a slower-than-forecast decline in Canadian gas production, and the backlog of new wells stimulated and brought on line have all led to a rapid rise in gas storage levels," according to a company press release.

Shares of Schlumberger were up 3.1% at $96.37 in early trading.