Schlumberger Limited (SLB) reported better-than-expected revenue for the fourth quarter of 2018 while earnings came in line with estimates. Shares were up 2.9% in premarket hours on Friday.
Revenues totaled $8.2 billion which was relatively flat compared to the same period last year. On a sequential basis, revenue dropped 4% due to lower activity and pricing for most businesses within the Production and Cameron segments in North America land.
On a GAAP basis, the company reported a net income of $538 million or $0.39 per share compared to a net loss of $2.25 billion or $1.63 per share in the prior-year period. Adjusted net income dropped 25% year-over-year to $498 million or $0.36 per share.
During the fourth quarter, revenue in North America remained flat compared to the prior-year period. International revenue increased by 1%. Excluding Cameron, revenue in North America rose by 1% and International revenue grew by 3%.
Revenue in the Reservoir Characterization business unit increased 1% year-over-year. During the quarter, the business benefited from several contract wins and new multiclient seismic surveys. The Drilling unit recorded a year-over-year growth in revenue while the Production and Cameron units saw revenue declines.
Schlumberger Chairman and CEO Paal Kibsgaard said, “Looking forward to 2019, we expect a more positive supply- and demand-balance sentiment to lead to a gradual recovery in the price of oil over the course of the year, as the OPEC and Russia cuts take full effect; the effect of lower activity in North America land in the second half of 2018 impacts production growth; the dispensations from the Iran export sanctions expire and are not renewed; and as the US and China continue to work toward a solution to their ongoing trade dispute.”
On January 16, 2019, the Board of Directors approved a quarterly cash dividend of $0.50 per common share, payable on April 12, 2019 to shareholders of record on February 13, 2019.
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