Oilfield services provider Schlumberger Ltd. (SLB) reported Friday a profit for the fourth quarter that increased from last year, reflecting double-digit growth in oilfield services revenue. Both earnings per share and quarterly revenues topped analysts' expectations. Looking ahead, the company said uncertainty remains over the outlook for 2012 due to the continuing sovereign debt crisis in Europe.
The Houston, Texas-based company reported net income of $1.41 billion or $1.05 per share for the fourth quarter, higher than $1.04 billion or $0.76 per share in the prior-year quarter.
Excluding charges and credits, income from continuing operations for the quarter increased to $1.49 billion or $1.11 per share from $1.16 billion or $0.85 per share a year ago.
On average, 33 analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew to $10.97 billion versus $9.07 billion in the same quarter last year, and topped twenty-four Wall Street analysts' consensus estimate of $10.79 billion.
Oilfield services revenue increased 21 percent year-on-year to $10.30 billion, and distribution revenue was up 19 percent to $685 million from last year.
The company noted that growth in North America was led by high-technology services in deepwater Gulf of Mexico, where operational performance was extremely solid. International growth was driven by deepwater and exploration activity, particularly in East and West Africa, and by strong land activity in the Middle East and North Africa.
"Fourth-quarter results showed solid sequential growth driven by stronger activity both on land and offshore for most Technologies, and stronger product sales for completions, software and multiclient seismic. All Areas and Product Groups grew sequentially," CEO Paal Kibsgaard said in a statement.
On Thursday, the company approved a 10 percent increase in quarterly dividend to $0.275 per share.
For fiscal year 2011, the company reported adjusted income from continuing operations of $4.97 billion or $3.66 per share, up from $3.60 billion or $2.86 per share last year. Analysts expected the company to earn $3.65 per share.
Revenues for the full year grew to $39.54 billion from $27.45 billion in the previous year. Street was looking for revenues of $39.33 billion.
Looking ahead, the company said uncertainty remains over the outlook for 2012 due to the continuing sovereign debt crisis in Europe which places downward pressure on GDP and oil demand forecasts.
SLB shares closed Thursday's regular trading session at $72.86, up $1.64 on a volume of 12.79 million shares, higher than the three-month average volume of 9.60 million shares. In the past 52-week period, the stock has been trading in a broad range of $54.79 to $95.64.
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