Friday, July 11, 2014

Schlumberger: Drilling slowdown, prices hit 4Q

February 19. 2013 10:05PM
Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle

(AP) Schlumberger Ltd. said Friday that drilling slowdowns and price cuts will hurt its fourth-quarter earnings, and investors responded by driving shares down more than 4 percent.

Weaker than expected land drilling in the U.S. and Western Canada, combined with contractual delays and slowdowns overseas, are expected to cut earnings in the current quarter by 5 to 7 cents per share, the company predicts. It hasn't issued a fourth-quarter forecast and a spokesman wasn't immediately available Friday morning.

Analysts, on average, expect the oil services firm to earn $1.13 per share in the quarter.

The Houston company provides a variety of equipment and services for the oil and gas industry. It pumps high-pressure fluids underground to unlock oil and natural gas in a process called hydraulic fracturing, or fracking. It helps companies evaluate how much oil sits in underground reservoirs, and Schlumberger provides drill bits, sensors, software and other equipment that are in constant demand during a drilling operation.

Although its third quarter results, released in October, were also weighed down by decade-low prices for natural gas in North America and the falling number of active rigs, it was able to offset that weakness through higher earnings across its units in Europe, Africa, Asia and the Middle East.

It will release fourth quarter earnings in January.

The stock fell $4.26, or 4.2 percent, to $68.30 in morning trading after falling as low as $67.60 earlier. Its shares sank to a 52-week low of $59.12 in late June. They traded as high as $80.78 in February.

Associated Press

comments powered by Disqus Commenting Guidelines
Mortgage Minute

Search for New & Used Cars

Used New All

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals

Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds