Schlumberger profit climbs 39% in Q1
Offshore and international drilling powered company to higher profit
Schlumberger posted a 39% hike in net profit as first quarter results topped out analysts expectations for the oilfield service giant.
Schlumberger said on Friday that group-wide Q1 net profit for 2012 rose 39% to $1.3 billion, or 97 cents per share, from $944 million, or 69 cents per share, a year earlier. Revenue rose to $10.6 billion from $8.7 billion a year ago.
Offshore drilling has powered the profit rise, and the group expects total rig counts to climb 10% this year over 2011.
The firm is looking to plow $4.5 billion into capex this year, a headline figure which remains unchanged despite Schlumberger’s decision to direct investment away from North America, where the shale gas boom have left gas prices so low that further investment offers poor returns. Rig activity outside the US climbed 1.2%.
On Friday Schlumberger shares climbed 2.7% to $71 by close of trading on the New York Stock Exchange.