By Houston Business Journal

Schlumberger Ltd. reported Friday a 33 percent boost in its second quarter net income on the heels of strong performances in North America and Latin America.

The Houston oilfield services company posted net income of $818 million, or 68 cents per share, on revenue of $5.94 billion compared with $613 million, or 51 cents per share, on revenue of $5.53 billion in the 2009 second quarter.

Analysts polled by Thomson First Call were on average expecting Schlumberger (NYSE: SLB) to post earnings per share of 68 cents.

Schlumberger's stock was down 4.6 percent to $58.48 by 11 a.m. CT. Jefferies & Co. called the quarter "uninspiring." Shares ultimately closed at $59.34, down 3.2 percent.

Meanwhile, Schlumberger CEO Andrew Gould said the firm is not planning to resume drilling activity in the Gulf of Mexico this year.

In June, Schlumberger - which earned 3.5 percent of its consolidated 2009 revenue from U.S. Gulf waters, mainly from deepwater operations - said it expects to take a hit as a result of the Gulf offshore drilling ban but should be fine considering its reach globally,where the effects of the 180-day moratorium will not be felt as much.

In its second quarter report, Gould reiterated the sentiment, noting: ⿿In deepwater activity elsewhere we have not seen, nor do we expect to see, any significant delays or program reductions as a result of the US Gulf of Mexico drilling moratorium. Internationally, operators, contractors and regulatory bodies have stepped up maintenance and verification of key well control equipment and procedures, but have not restricted actual drilling activity.⿝

Copyright 2010 American City Business Journals
Copyright 2010