Oilfield services company and industry bellwether Schlumberger (SLB) beat estimates for second-quarter profits and sales as drilling activity outside North America hit a three-decade high.
But oil drilling equipment maker Baker Hughes (BHI) fell sharply after it missed Wall Street's Q2 earnings target on weak activity in Latin America.
Schlumberger gapped up 5% to a 52-week high on the stock market today. Baker Hughes fell 3% in heavy trading volume.
Schlumberger, tops in the oilfield services group with annual revenue of about $44 billion, said Q2 earnings per share climbed 9.5% to $1.15, beating analyst estimates by 5 cents. Revenue grew 7% to $11.18 billion, ahead of views for $11.11 billion.
"SLB's total operating income of $2.3 billion surpassed our forecast by 4.9% and advanced 14% from 2Q 2012 as profits rose sequentially and beat our forecast in every region," said Sterne Agee analyst Stephen Gengaro in a client note.
Halliburton (HAL), which provides reservoir and oilfield drilling services and products, is on tap to report Q2 earnings Monday before the market opens.
Consensus of 32 analysts polled by Thomson Reuters is for Halliburton's revenue to edge up less than 1% to $7.25 billion, and EPS to fall 10% to 72 cents. Shares were up 1.5% Friday.
Schlumberger said oil and natural gas prices are stabilizing after being depressed.
The U.S. has shown virtually no impact from the federal budget sequester, the eurozone remains in recession, and data from China continue to be mixed, the company said in a statement.
Given the lack of change in the economic picture, supply and demand for both oil and natural gas remain stable, along with oil and gas prices, the company said.
During the quarter, oil reservoir characterization business grew 10% from the prior quarter to $3.01 billion and its drilling group increased 4% to $4.29 billion, mainly due to seasonal rebounds, market share gains and higher exploration acti
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