By Maria Armental
Schlumberger Ltd.'s profit fell sharply in the fourth quarter as
oversupply and tepid demand drove oil prices down along with
exploration spending.
Unrest in Libya and Iraq and international sanctions in Russia
also took a toll.
The world's largest oil-field services company, with a market
capitalization of more than $106 billion, said last month it would
write down $800 million in the quarter related to the reduction of
its marine fleet at WesternGeco, which focuses on seismic
services.
As the first oil-field services company to report, Schlumberger
is expected to set the tone for a sector hard-hit by plunging crude
prices.
In the latest quarter, results were driven by growth in North
America, where revenue rose 16% to $16.15 billion, Schlumberger
said.
In its international segments, revenue rose 4% to $32.1 billion,
led by growth in Saudi Arabia and Bahrain and "robust activity" in
Kuwait and the United Arab Emirates, Schlumberger said.
Schlumberger's Europe/Commonwealth of Independent States/Africa
segment, which includes Russia, reported significantly lower
revenue hurt by weakness from the ruble and seasonal declines in
Russia and fewer working rigs in Angola, Norway and the U.K. due to
falling oil prices.
Overall, Schlumberger reported a profit of $302 million, or 23
cents a share, down from $1.66 billion, or $1.26 a share, a year
earlier. Excluding restructuring and other costs, profit rose to
$1.50 a share from $1.35 a share a year earlier. Revenue rose 6% to
$12.64 billion.
Analysts surveyed by Thomson Reuters expected $1.45 a share and
revenue of $12.67 billion.
Earlier Thursday, the company said it was raising its quarterly
dividend 25% to 50 cents a share.
Through Thursday's closing, the company's stock had fallen
nearly 14% over the past 12 months.
French brothers Conrad and Marcel Schlumberger started the
company in 1926 as the Societe de Prospection Electrique, nicknamed
"Pros", which initially handled surface prospecting for the metal
ore mining industry, according to Schlumberger's website.
The company moved its headquarters to Houston in 1940.
Write to Maria Armental at maria.armental@wsj.com
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