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  • Jan 23rd, 2010
  • Comments Off on Schlumberger quarterly profit tops Wall Street view
Schlumberger Ltd, the world's largest oilfield services company, posted higher-than-expected quarterly earnings on Friday and said oil producers were likely to start spending more on new projects. But with analysts worried by profit margins in the fourth quarter, and US crude oil prices CLc1 touching one-month lows, shares of the company fell 0.9 percent in early trading.

Net profit fell to $817 million, or 67 cents per share, in the quarter from $1.15 billion, or 95 cents per share, a year earlier. Revenue fell 16 percent to $5.74 billion. That topped analysts' average forecast of 64 cents a share on revenue of $5.44 billion, according to Thomson Reuters I/B/E/S.

North American oilfield services demand grew in the fourth quarter from the third, but analysts pointed out that North American revenue did not rise as much as overall activity levels and margins suffered from the mix of business. "Estimates will likely not be moving higher on this release," Simmons & Co wrote in a note.

Schlumberger also pointed to price concessions made earlier in the year to explain its margin performance. Oil prices have steadied at $70 to $80 per barrel in recent months, high enough to lend some confidence to energy companies to begin spending on new wells after the market plunged at the end of 2008.

Copyright Reuters, 2010


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