Schlumberger (NYSE:SLB) posted its latest quarterly earnings results late on Thursday, bringing in mixed results that sent SLB stock sliding as profit topped expectations, but fell year-over-year.
For its first quarter of 2019, the Houston, Texas-based oilfield services business announced net income of $421 million, dropping more than $100 million from the $525 million it amassed during the year-ago quarter. Earnings tallied up to 30 cents per share, meeting the Wall Street guidance, according to data compiled by Refinitiv.
Schlumberger added that its revenue for the first three months of the fiscal year reached $7.88 billion, topping the $7.81 billion revenue outlook that Refinitiv called for. The company’s cash flow from operations declined from $568 million in the year-ago quarter to now reach $326 million.
The company added that it sees a 7% to 8% gain in investments by oil producers in markets outside of North America, noting a 20% increase last quarter in offshore rig counts, as well as growing exploration activity in Latin America, Asia and Africa. Schlumberger had previously provided a guidance of high single-digit percentage growth in international markets, as well as a 10% slide year-over-year in North America customer spending.
U.S. oil producers have not been as gung-ho about spending as in the past even though U.S. oil production has reached record numbers, while crude oil prices are recovering. This is linked to such businesses focusing on earnings growth to appease shareholders.
SLB stock is down about 3.7% on Friday.
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