Schlumberger Limited (NYSE:SLB) reported a clear miss on quarterly and annual revenue and EPS estimates, but shares rose more than 6%. On top of that, the company expects 2009 to be weak, with drops in North American drilling, and lower "production enhancement" in Russia and "mature offshore basins." The company also expects prices to erode.
The company announced layoffs earlier this month, and wrote offsome outstanding receivables. All that had already been factored intothe share price.
But oil field services just doesn’t seem like a good place to be withE&P spending on the decline. Perhaps investors were expecting thenews from Schlumberger to be worse. In any event, competitorsWeatherford International Ltd. (NYSE:WFT) and Halliburton Company(NYSE:HAL) are riding Schlumberger’s coattails today. All are upbetween about 4% and 6%. Go figure.
January 23, 2009