Schlumberger (SLB) announced earnings of $353 million or $0.25 EPS for its third quarter ended September, beating its consensus earnings forecast of $0.22 per share. If one-time charges stemming from the acquisition of Cameron International Corp. in April of this year are included, earnings would be $0.13 EPS or $176 million against Q3 2015 earnings of $989 million, or $0.78 EPS.
Year-on-year, revenues dropped 17% with Q3 2016 coming in at $7 billion versus $8.5 billion in Q3 2015.
Paal Kibsgaard, CEO credited aggressive cost control, which eliminated $6 billion in expense, as one reason he feels Schlumberger is on a rising path.
The Cameron acquisition diversified SLB’s offerings to its clients by adding an equipment supply business that rounds out capabilities as a full-service provider to its clients. Kibsgaard went on to say that although a “broad-based V-shaped recovery is unlikely given the fragile financial state of the industry,” he is optimistic about improved business in 2017 “in North America land, the Middle East and Russia markets.”
Schlumberger’s stock closed Thursday at $82.99 per share in heavy trading, at the high end of its 52-week price range of $59.60 to $84.30 per share. The day’s trading range was $81.88 to $83.36 per share.