Schlumberger, the worlds largest oilfield services company, has posted a profit that edged out market forecasts and forecast a quicker industry recovery outside North America.
p>Schlumberger, the worlds largest oilfield services company, has posted a profit that edged out market forecasts and forecast a quicker industry recovery outside North America.
Firmer oil prices attracted renewed interest in projects outside North America and margins were rebounding sooner than expected, chairman and chief executive Andrew Gould said. "International margins appear to have bottomed and are likely to resume a positive trend from now on - absent any exceptional circumstances," he said.
Gould said oil above US$80 a barrel would loosen purse strings for his clients' engineers who want to pay more for better technology.
His take on the global oil and gas industry is watched closely because of Schlumberger's size and knowledge of the plans of so many leading energy companies.
"The shift to a more bullish stance will be welcomed by investors as it confirms that we are in another upcycle," BMO Capital Markets analyst Alan Laws said, referring to Gould's positive change in tone.
Schlumberger, whose planned US$11.3 billion purchase of peer Smith International is awaiting approval by antitrust regulators, said US natural gas drilling should remain active in the second quarter.
Strong drilling in natural gas fields such as the Haynesville and Marcellus shales has helped bolster earnings across the sector this year.
But uncertainty about US gas prices could curtail producers' drilling programmes, creating a cloudy picture in the company's biggest market.
First-quarter net income fell 28 per cent to US$672mn, or US$0.56 per share, from US$938mn, or US$0.78 a year earlier.
Excluding one-time charges, earnings per share were US$0.62 cents, just above the US$0.61 cents analysts had forecast. Revenue fell seven per cent to US$5.6 billion, slightly below US$5.69 billion analysts had forecast.
