SCHLUMBERGER DOWN 30%
Schlumberger Ltd.'s second-quarter earnings fell 30% on plunging revenue, as the oil-services sector continues to grapple with weak oil prices.
Schlumberger reported a profit of $1.12 billion, or 88 cents a share, down from $1.6 billion, or $1.21 a share, a year earlier. Revenue dropped 25% to $9.01 billion.
Aanalysts polled by Thomson Reuters, however, had expected per-share profit of 79 cents and revenue of $8.97 billion. And the company's stock price rose 1.3% to $85 in recent after-hours trading, as per-share earnings and revenue nonetheless beat expectations.
Second-quarter revenue in North America declined 39%. For its operations outside North America, Schlumberger reported revenue fell 19%.
Chief Executive Paal Kibsgaard said he expects investment by oil exploration and production companies to decline more this year than previously expected. Spending in North America is expected to tumble by more than 35%, compared with a previous estimate for a decline of more than 30%, driven by reduced land activity and increased pricing pressure.
Schlumberger helps oil producers drill and frack wells. It competes with Halliburton Co. and Baker Hughes Inc., which are planning to merge.
"We believe that the North American rig count may now be touching the bottom, and that a slow increase in both land drilling and completion activity could occur in the second half of the year," Mr. Kibsgaard stated.
In the international market, Schlumberger expects investment to decline more than 15%, compared with its earlier view for a decline of roughly 15%.
Schlumberger and its rivals have been cutting costs to reflect weaker demand for their services from oil producers spurred by weak prices for crude. Halliburton and Baker Hughes also have been cutting jobs in recent quarters.
Halliburton plans to release its second-quarter results on Monday, while Baker Hughes is set to report on Tuesday.
|June, 18, 14:30:00|
|June, 18, 14:25:00|
|June, 18, 14:20:00|
|June, 18, 14:15:00|
|June, 18, 14:10:00|
|June, 18, 14:05:00|
IMF - Within the next few years, the U.S. economy is expected to enter its longest expansion in recorded history. The Tax Cuts and Jobs Act and the approved increase in spending are providing a significant boost to the economy. We forecast growth of close to 3 percent this year but falling from that level over the medium-term. In my discussions with Secretary Mnuchin he was clear that he regards our medium-term outlook as too pessimistic. Frankly, I hope he is right. That would be good for both the U.S. and the world economy.
IMF - The near-term outlook for the U.S. economy is one of strong growth and job creation. Unemployment is already near levels not seen since the late 1960s and growth is set to accelerate, aided by a near-term fiscal stimulus, a welcome recovery of private investment, and supportive financial conditions. These positive outturns have supported, and been reinforced by, a favorable external environment with a broad-based pick up in global activity. Next year, the U.S. economy is expected to mark the longest expansion in its recorded history. The balance of evidence suggests that the U.S. economy is beyond full employment.
U.S. FRB - Industrial production edged down 0.1 percent in May after rising 0.9 percent in April. Manufacturing production fell 0.7 percent in May, largely because truck assemblies were disrupted by a major fire at a parts supplier. Excluding motor vehicles and parts, factory output moved down 0.2 percent. The index for mining rose 1.8 percent, its fourth consecutive month of growth; the output of utilities moved up 1.1 percent. At 107.3 percent of its 2012 average, total industrial production was 3.5 percent higher in May than it was a year earlier. Capacity utilization for the industrial sector decreased 0.2 percentage point in May to 77.9 percent, a rate that is 1.9 percentage points below its long-run (1972–2017) average.
IMF - South Africa’s potential is significant, yet growth over the past five years has not benefitted from the global recovery. The economy is globally positioned, sophisticated, and diversified, and several sectors—agribusiness, mining, manufacturing, and services—have capacity for expansion. Combined with strong institutions and a young workforce, opportunities are vast. However, several constraints have held growth back. Policy uncertainty and a regulatory environment not conducive to private investment have resulted in GDP growth rates that have not kept up with those of population growth, reducing income per capita, and hurting disproportionately the poor.