"Our downgrade is based on relative exposure to areas [including] seismic (an estimated 4% of revenue, although this includes land seismic and processing), Russia (estimated 7%), Venezuela (estimated 2%), and China (estimated about 1%)," analysts said.
"Further, offshore comprises an estimated 40% of revenue, and deepwater an estimated half of that, and ... we are concerned the medium term outlook for deepwater is likely to be compromised by the softer oil price in 2015 and potentially by the impact of the corruption scandal at Petrobras," analysts added.
Shares of Schlumberger are down 0.84% to $83.50 in pre-market trading.
Separately, TheStreet Ratings team rates SCHLUMBERGER LTD as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHLUMBERGER LTD (SLB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."