Schlumberger Earnings Plunge On Weak Oil Market, Profit Still Beats Estimates

(RTTNews) - Oil services firm Schlumberger (SLB) announced a profit for the fourth quarter that dropped nearly 60 percent from last year, as plunging oil prices have led to a drop-off in capex spending in the industry.

Wall Street analysts expected the sharp decline, however, given the current market conditions. The company's bottom line came in above the amount analysts had expected, though revenues were slightly below consensus.

Schlumberger reported fourth quarter income of $819 million, down 58 percent from last year's mark of $1.94 billion. The bottom line figure excludes one-time items and discontinued operations.

The firm's earnings per share dipped to $0.65 from $1.50 per share last year. Analysts polled by Thomson Reuters had expected the company to earn $0.63 per share for the quarter.

Revenue plunged 54 percent to $7.74 billion, compared to $12.64 billion in last year's fourth quarter. Analysts predicted revenues of $7.8 billion.

Schlumberger said that the recent decrease in land activity was the sharpest it has seen since 1986.