Oilfield services provider Schlumberger Ltd. (SLB) Friday reported a fall in profit for the fourth quarter, hurt partly by seasonal slowdowns and contract delays, but revenue grew on strong international performance.
The company had warned last month that its fourth-quarter earnings would be hurt by continued contractual delays in the Europe, CIS and Africa as well as weaker than anticipated drilling activity in North America.
Schlumberger CEO Paal Kibsgaard said today, ''Our fourth-quarter results showed continued growth in key markets in addition to typical year-end product, software and multiclient sales. Performance was driven by international areas where service quality was strong, and service capacity tight for certain product lines.''
Schlumberger noted today that its results were impacted by the previously announced seasonal slowdowns and contract delays as well as by mobilization and new project start-up costs. In North America, strong performance in the U.S. Gulf of Mexico overcame lower-than-expected activity in Canada and further weakening in the U.S. land markets.
Net income attributable to the company slid to $1.36 billion, from $1.41 billion a year before. On a reported basis, income from continuing operations totaled $1.37 billion, versus last year's $1.40 billion. The company said it recorded charges of $0.06 per share during the recent quarter, compared with $0.06 per share in the prior-year period.
Schlumberger recorded charges of $0.06 per share in the fourth quarter of 2012, same as last year. Cost of revenue increased 10 percent to $8.8 billion.
Excluding charges and credits, adjusted income from continuing operations attributable to Schlumberger was $1.44 billion or $1.08 per share. On average, 32 analysts polled by Thomson Reuters expected earnings per share of $1.07 for the quarter. Analysts' estimates typically exclude one-time items.
Revenue for the quarter advanced to $11.17 billion from last year's $10.30 billion and $10.61 billion in the third quarter of 2012. Analysts estimated revenues of $10.82 billion for the quarter.
Reservoir Characterization generated $3.15 billion in the quarter, while Drilling revenues amounted to $4.14 billion. Production revenues were $3.92 billion.
Geographically, North America generated $3.41 billion and Latin America $2.07 billion. Europe/CIS/Africa revenues were $2.96 billion and Middle East & Asia revenues totaled $2.58 billion.
For the full year, net income grew to $5.49 billion from $5 billion and revenue increased to $42.15 billion from $36.96 billion.
On January 17, 2013, the Board of Directors approved a 13.6 percent increase in the quarterly dividend.
SLB closed on Thursday at $73.37.
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