Schlumberger Limited (NYSE:SLB) late today posted mixed third quarter earnings results, but noted that its outlook for the beleaguered oil and gas market is steadily improving.
The Houston-based company reported Q3 adjusted earnings of $0.25 per share, beating out Wall Street’s $0.22 estimate. Revenue plunged 17.2% from last year to $7.02 billion. Analysts expected better revenues of $7.09 billion.
On a better note, Schlumberger’s Q3 revenue decline appears to be slowing considerably. SLB’s revenue fell 2% on a sequential basis from Q2.
The company is beginning to see a light at the end of the tunnel in terms of the several year-long oil price crash. SLB commented via press release:
In the global oil market, the supply and demand of crude is now more or less balanced as evidenced by flattening petroleum inventory levels and the start of consistent draws toward the end of the quarter—particularly in North America. At the same time, oil demand for 2017 was again revised upward in October and if combined with OPEC’s announced intention to cut production, this suggests further inventory draws in the coming quarters that should lead to upward movement in prices.
Schlumberger shares rose $0.51 (+0.61%) to $83.50 in after-hours trading Wednesday. Prior to today’s report, SLB had gained 18.57% year-to-date.