Oilfield services company Schlumberger Ltd on Tuesday reported its quarterly earnings more than doubled as customers ramped up exploration and production in response to high energy prices. Net income, including discontinued operations, rose to $523 million, or 86 cents a share, in the first quarter, from $220 million, or 37 cents a share, a year earlier. Excluding charges and credits, it earned 65 cents from continuing operations. On that basis, analysts had expected earnings of 61 cents a share.
Operating revenue rose to $3.16 billion from $2.67 billion a year earlier.
"This is a good report," said Pierre Conner, analyst with Hibernia South-east Capital. "There was good strength in seismic (operations) and a consistent performance in its return on capital."
Oilfield services revenue rose 18 percent to $2.78 billion, while revenue at Schlumberger's WesternGeco seismic survey company increased 21 percent to $378 million.
"Increasing activity levels around the world reflect the growing response to the current narrow margin of excess production capacity," Chief Executive Andrew Gould said in a statement.
Gould said industry growth was set to continue as long as there wasn't any sharp drop in demand due to economic recession.
Gould said activity and pricing were particularly strong in North America in the first quarter, driven partly by exceptionally high activity in Canada. Revenue from North American rose 20 percent to $868 million.
"The demand for, and speed of, technology uptake remains strong," said Gould.