Schlumberger Ltd. (SLB), the world’s largest oilfield-services provider, reported third-quarter profit that failed to meet analysts’ estimates as crude prices fell.
Net income fell to $1.3 billion, or 96 cents a share, from $1.73 billion, or $1.38, a year earlier, Houston- and Paris- based Schlumberger said in a statement on Business Wire today. Last year’s quarterly result included one-time gains from Schlumberger’s purchase of Smith International Inc.
Excluding costs associated with the Smith purchase, the company earned 98 cents a share, less than the $1.01 average of 27 analysts’ estimates compiled by Bloomberg.
“The third quarter is usually a pretty strong quarter because of the weather” in Canada, John M. White, an analyst at Triple Double Advisors LLC in Houston, said in an interview before the earnings were released. White, whose company manages about $50 million and owns an undisclosed number of Schlumberger shares, said he expected a “small beat” of analysts’ expectations.
The earnings statement was released before the start of regular trading on U.S. markets. Schlumberger rose 0.1 percent to $67.99 yesterday in New York. The shares, which have 31 buy and five hold ratings from analysts, fell 31 percent during the third quarter.
Oil prices in New York had the largest quarterly drop since the 2008 financial crisis, tumbling to a one-year low as signs of slowing growth in China, the U.S. and Germany heightened concern that fuel demand will weaken. Futures contracts have dropped 24 percent from a high of $113.93 on April 29.
Halliburton Co. (HAL), the world’s second-largest services provider, reported adjusted earnings on Oct. 17 that beat analysts’ estimates by 3 cents.
(Schlumberger will hold an earnings conference call starting at 9 a.m. New York time, accessible at EVTS .)
To contact the reporter on this story: David Wethe in Houston at dwethe@bloomberg.net
To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net
