Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Cragganmore who wrote (43040)	4/22/1999 8:42:00 PM
From: stan s.	Read Replies (1) \| Respond to of 95453

I think you're right. I had to reread the first paragraph twice in this mornings release to distinguish '98 1st qtr and '99 1st quarter. More news from SLB. FOCUS-Schlumberger cuts more jobs as earnings plummet (New throughout, recasts lead with job cuts, adds byline, pvs NEW YORK) By Andrew Kelly HOUSTON, April 22 (Reuters) - Schlumberger Ltd.(SLB - news), the world's number two oilfield services company, reported a 53 percent drop in first-quarter net income on Thursday and said it would ax thousands more jobs to lower its costs by $300 million. Earnings were hammered by low oil prices which have led oil companies to scale back their efforts to find and develop new reserves, thus reducing their appetite for the support services provided by Schlumberger and its competitors. However, the recent rebound in oil prices to around $18 a barrel from an average of $13 in the first quarter, is expected to lead to a gradual improvement in service firms' fortunes. Schlumberger said the stage was set for a ''vigorous recovery'' in oilfield activity next year. First-quarter net income before one-time charges fell to $179 million or $0.32 per share from $378 million or $0.70 per share in the same period of 1998. Wall Street had been expecting slightly lower earnings per share of $0.30, according to First Call Corp. which tracks analysts' estimates. Operating revenues fell 24 percent to $2.31 billion from $3.02 billion, reflecting a 35 percent decline in the number of rigs drilling for oil and gas around the world. The utilization rate for the company's own fleet of 84 drilling rigs fell to 77.3 percent from 94.8 percent. Schlumberger said revenues and earnings fell in all geographic areas but that the decline was particularly pronounced in North America and Latin America. The company said it would eliminate a further 2,500 jobs by the end of June, bringing the total since last July to 10,000 for a 21 percent reduction in its oilfield services headcount. Schlumberger took an after-tax charge of $90 million or $0.16 per share in the first quarter to cover the job cuts which are expected to produce annual pretax savings of $300 million. This comes on top of $300 million in savings from an earlier round of job cuts announced last October. Schlumberger Chairman and Chief Executive Officer Euan Baird said in a statement there were hopeful signs that supply and demand for oil were moving closer to equilibrium. ''Early signs of a recovery in oil demand, particularly in Asia, coupled with the decline in non-OPEC production due to reduced (exploration and production) spending by the oil companies, are setting the stage for a vigorous recovery in oilfield activity next year,'' he said. James Stone, an analyst with Schroder & Co, agreed that it would take a while before firmer oil prices and increased exploration spending by oil companies would work their way through to Schlumberger's quarterly earnings. ''We expect earnings to be down sequentially in the June quarter and then probably pick up a little on a sequential basis as we move to the end of the year, but they will still be down sharply year-over-year,'' he said. Stone said he expected Schlumberger's stock to outperform the rest of the market, projecting the share price would appreciate some 20 to 25 percent over the next 12 months. However, he said the company was not one of his favorite picks within the oilfield services sector. ''We don't think it has as much upside as some of the other names that we're recommending, like Weatherford International (WTF - news) or R&B Falcon (FLC - news),'' he said.

To: Cragganmore who wrote (43040)	4/22/1999 9:22:00 PM
From: Peter V	Read Replies (3) \| Respond to of 95453

<<I believe there was some confusion whether this 0.14 was to be applied to the 98 or 99 results. >> It could not be any clearer in the RIG PR, issued at 8:05 am (and it is not labeled a correction): First quarter 1998 results included a non-recurring after-tax gain of $13.9 million or $0.14 per diluted share arising from the settlement of a dispute with Global Marine Inc. Excluding the impact of the settlement, net income for the first three months of 1998 was $63.7 million or $0.63 per diluted share. I don't know who could have been confused, but you never know.