Schlumberger beats on North American drilling; sees global recovery

Schlumberger Ltd's (SLB.N) quarterly profit and revenue beat analysts' estimates on Friday, driven by strong demand in North America, and the company said it was seeing recovery in its international markets.

The Houston-based company's shares were up 1.5 percent at $68 in premarket trading.

North American shale producers have been actively drilling in recent quarters, encouraged by a recovery in oil prices.

Crude in the second quarter averaged $48.15 per barrel, a 5 percent gain over a year earlier, and companies added 506 onshore rigs in the past year, according to a closely watched Baker Hughes report.

Schlumberger, the world's top oilfield services provider, said North America revenue surged nearly 27 percent to $2.20 billion in the second quarter ended June 30.

Revenue from the region rose 18 percent from the preceding quarter.

The company said U.S. onshore revenue soared 42 percent in the latest quarter from the preceding, as higher completion activity and improving pricing boosted hydraulic fracturing revenue.

Schlumberger said it was also seeing more positive signs in the international markets with increases in activity and new project plans.

The company is the first oilfield services provider to report results and sets the tone for the industry.

Total revenue for the company rose 4.2 percent to $7.46 billion in the second quarter, beating the average analysts' estimate of $7.23 billion, according to Thomson Reuters I/B/E/S.

Excluding items, the company earned 35 cents per share, above expectations of 30 cents.

During the quarter, the company took $510 million in impairment charges, mostly from its operations in Venezuela, which has been embroiled in economic and political turmoil.