July 17, 2014 / 9:15 PM / 4 years ago

UPDATE 1-Rebounding North America boosts Schlumberger revenue

July 17 (Reuters) - Schlumberger Ltd’s, the world’s largest oilfield services company, reported better-than-expected second quarter revenue as drilling activity picked up in North America.

Revenue from the oversupplied market - where all major oilfield service providers have been competing for fewer contracts - jumped 16 percent to $3.89 billion from a year earlier.

Smaller rival Baker Hughes Inc also reported a higher-than-expected profit on strong growth in North America, earlier on Thursday.

Schlumberger and Baker Hughes provide several services, including seismic surveys that determine where oil lies under the earth’s surface and hydraulic fracturing of wells.

Robust drilling activity in the Gulf of Mexico and a rise in onshore drilling in the United States helped offset seasonal weakness in Canada, Schlumberger said in a statement on Thursday.

Schlumberger has the lowest exposure to North America among the big four oilfield service providers, which include Halliburton Co and Baker Hughes Inc.

International markets brought in about two-thirds of Schlumberger’s quarterly revenue, with a 12 percent rise in revenue from the Middle East and Asia and 4 percent rise in Europe. Revenue from Latin America fell 3 percent.

Total revenue for the second quarter ended June 30 rose 8 percent to $12.05 billion, compared with analysts’ average estimate of $11.94 billion, according to Thomson Reuters I/B/E/S.

Net income fell by nearly a quarter to about $1.60 billion, or $1.21 per share, from $2.10 billion, or $1.57 per share.

Earnings per share from continuing operations was $1.37, higher than the analyst average estimate of $1.36 per share. (Reporting by Sayantani Ghosh in Bangalore; Editing by Joyjeet Das)

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