Schlumberger beats profit

HOUSTON: Schlumberger on Friday posted a fourth quarter loss on charges but beat Wall Street forecasts and gave an upbeat outlook, predicting its international operations would grow in 2018 for the first time in four years.

Schlumberger, the largest energy company so far to report results, is a bellwether for oilfield services and drilling.

Its forecast for broad improvements this year on higher oil prices signals a stronger recovery for producers and service companies.

"Looking at the oil market, the strong growth in demand is projected to continue in 2018, on the back of a robust global economy," said Chief Executive Paal Kibsgaard.

Producers predict between 15 and 20 percent growth in North American energy investments, he said.

The world´s largest oilfield services company reported $2.7 billion in fourth quarter charges including a $938 million write-down of its Venezuelan holdings and unpaid bills due to economic turmoil there.

Schlumberger said it would remain in the South American country and continue to seek payment for its past work there.

It also took more than $1.1 billion in restructuring expenses tied to its WesternGeco seismic business, citing poor returns.

That unit will focus on selling its seismic data and no longer provide land and marine seismic acquisition.

The business has suffered as drilling has focused on well-defined U.S. shale fields rather than new areas. The charges widened Schlumberger´s fourth quarter net loss to $2.26 billion, from $204 million a year earlier.

Revenue rose 15 percent to $8.18 billion. Its shares were roughly flat at $76.33 in afternoon trade.