Schlumberger posts profit drop, sees international spending rising

Schlumberger posts profit drop, sees international spending rising
  • Clock-gray 19:05
  • calendar-gray 18 April 2019

Oilfield services provider Schlumberger NV on Thursday forecast rising international and offshore exploration spending this year, after posting a 20 percent drop in first-quarter profit due to weak North American demand, ONAreports citing Reuters.

The oilfield services sector bellwether said it expects a 7 to 8 percent increase in investments by oil producers in markets outside North America, citing a 20 percent increase last quarter in offshore rig counts and growing exploration activity in Latin America, Africa and Asia.

“We still see a fairly decent runway for increased international investments,” Chief Executive Officer Paal Kibsgaard said, citing higher new project approvals and a renewed interest in exploration outside North America. Second-quarter earnings per share will be 35 cents, in line with the Wall Street consensus estimate, said Kibsgaard. He cautioned seasonal factors would preclude the potential for exceeding that figure. Shares rose 1.8 percent to $48.27 in early trading, adding to the nearly 31 percent increase this year through Wednesday.

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