Schlumberger reports big jump in quarterly profit

22nd October 2010, Comments 0 comments

The US-French oil services provider Schlumberger on Friday reported a 120 percent surge in third quarter net earnings and a 26 percent jump in sales that it attributed to its acquisition of US group Smith International.

Schlumberger said net profit came to 1.734 billion dollars (1.2 billion euros) in the July-September period from the same quarter a year earlier. Sales in the third quarter rose to 6.845 billion dollars.

The company said its performance reflected the integration of Smith International, which it acquired through an exchange of shares.

It said Smith contributed 810 million euros to Schlumberger's sales total and 84 million to operating earnings.

Third quarter operations were also boosted by a pick-up in activity in the United States and Canada, which compensated for a decline in activities in the Gulf of Mexico where deep-water drilling was suspended following a huge oil spill at a BP rig.

In the fourth quarter, Schlumberger said, activity should remain robust in North America and Canada. But it did not foresee a rapid improvement in the Gulf of Mexico despite the lifting of the deep-water drilling moratorium.

© 2010 AFP

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