Schlumberger tops profit estimates as revenue falls slightly short
Energy giant Schlumberger Ltd. said Friday it had net income of $644 million, or 46 cents a share, in the third quarter, up from $581 million, or 39 cents a share, in the year-earlier period. Adjusted per-share earnings were also 46 cents, ahead of the FactSet consensus of 43 cents. Revenue rose to $8.504 billion from $7.905 billion, just short of the FactSet consensus of $8.580 billion. Chief Executive Paal Kibsgaard said international areas grew revenue faster sequentially than North America for the first time since the second quarter of 2014. In North America, sequential growth remained positive, but slowed from previous quarter “as takeaway constraints in the Permian impacted hydraulic fracturing activity ….From a macro perspective, the oil market continued to tighten in the third quarter as seen by a further draw in global oil inventories and a significant increase in oil prices despite continued strong production from the US and increasing output from key OPEC countries,” he said. The tightening supply and demand balance is being further exacerbated by reduction in Venezuela and Iranian exports, he said. Shares initially dipped but then reversed to trade up about 1% premarket, but are down 13.3% in 2018, while the S&P 500 has gained 3.6%.
Source : MTV
