Schlumberger Revenue Beats on Uptick in Activity, Prices

Schlumberger reported better-than-expected quarterly revenue as oil producers put more land rigs back to work in North America and prices for oilfield services recovered slightly in the region.

Shale companies, encouraged by a rise in crude oil prices after a slump of more than two years, have been drilling more wells, boosting demand for services provided by Schlumberger and other service providers.

Schlumberger, the world's No.1 oilfield services provider, said its fourth-quarter revenue from North America rose 4 percent to $1.77 billion compared with the third quarter.

The company said revenue from onshore operation in the United States grew double digits in percentage terms due to "higher activity and a modest pricing recovery."

Revenue growth in international markets was slower, rising 1 percent to $5.28 billion from the third to the fourth quarter.

Schlumberger Chief Executive Paal Kibsgaard said a recovery in international markets this year would "start off more slowly."

Net loss attributable to Schlumberger fell to $204 million, or 15 cents per share, in the three months ended Dec. 31, from $1.02 billion, or 81 cents per share, a year earlier.

The latest quarter included a $536 million restructuring charge as well as a $139 million charge related to the acquisition of Cameron International and a currency devaluation loss in Egypt. It recorded more than $2 billion in restructuring and asset impairment charges in the year-ago quarter.

Excluding items, Schlumberger earned 27 cents per share in the latest quarter, which was in-line with analysts' average estimate, according to Thomson Reuters I/B/E/S.

Revenue fell 8.2 percent to $7.11 billion, marginally beating analysts' estimate of $7.07 billion.

Schlumberger shares were little changed in premarket trading on Friday. They had risen a little more than 20 percent in 2016.

(Reporting by Arathy S Nair in Bengaluru; Editing by Savio D'Souza