Schlumberger: quarterly profit drops, but shares bounce
(CercleFinance.com) - Schlumberger said on Friday that its profit fell in the fourth quarter on the back of lower oil prices, but its stock bounced this off, with investors expecting the oilfield services group's situation to normalise this year.
Schlumberger shares, which have plunged over 45% over the past year, were up 5.5% in early trading on Wall Street.
The company's fourth-quarter EPS, excluding charges and credits, decreased by 22% sequentially to 36 cents. Including charges and credits, GAAP EPS was 39 cents.
Fourth-quarter revenue decreased 4% sequentially, to 8.2 billion dollars.
Schlumberger cited the dramatic fall in oil prices, driven by the US shale production surprising to the upside, and by geopolitical factors that have weighed on global demand.
However, the Texas-based company expects a better balance between supply and demand, leading to a recovery in oil prices in 2019, as cuts in supply by the OPEC and Russia take full effect, coupled with the effect of reduced levels of activity in North America.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Schlumberger shares, which have plunged over 45% over the past year, were up 5.5% in early trading on Wall Street.
The company's fourth-quarter EPS, excluding charges and credits, decreased by 22% sequentially to 36 cents. Including charges and credits, GAAP EPS was 39 cents.
Fourth-quarter revenue decreased 4% sequentially, to 8.2 billion dollars.
Schlumberger cited the dramatic fall in oil prices, driven by the US shale production surprising to the upside, and by geopolitical factors that have weighed on global demand.
However, the Texas-based company expects a better balance between supply and demand, leading to a recovery in oil prices in 2019, as cuts in supply by the OPEC and Russia take full effect, coupled with the effect of reduced levels of activity in North America.
Copyright (c) 2019 CercleFinance.com. All rights reserved.