Schlumberger beats by $0.02, reports revs in-line
Reports Q2 (Jun) earnings of $1.37 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.35; revenues rose 7.8% year/year to $12.05 bln vs the $11.95 bln consensus.
* Strong Schlumberger Q2 results were driven by significantly higher activity both offshore and in key land markets. Growth was strongest internationally as activity rebounded in a number of regions but North America was also markedly higher with strength offshore and extremely solid progress on land in spite of the Canadian spring break-up.
* All Areas and all Groups recorded growth, underpinned by the strength of our execution and the penetration of our new technology.
* Geographical results were led by Europe/CIS/Africa where Russia recovered markedly from the effects of a harsh winter and where Norway benefited from an active start to the summer seismic season.
* In Middle East and Asia, further growth from key markets in Saudi Arabia and Australia was amplified by stronger activity—both seismic and drilling—in the United Arab Emirates GeoMarket as well as growing seismic operations in Qatar.
* In North America, double-digit growth in US Land from increased rig count, efficiency gains and market share improvements more than overcame the effects of what proved to be a rapid spring break-up in Canada while offshore activity in the US Gulf of Mexico rebounded as rigs returned to drilling.
* Latin America benefited from strong growth in Argentina, Colombia and Venezuela but overall results were impacted by lower activity in Mexico, while revenue in the Brazil GeoMarket was flat sequentially.