Shares of Schlumberger Ltd profit rises 13 percent

Shares of Schlumberger Ltd profit rises 13 percent

Schlumberger Ltd announced that its shares jumped Friday after the oilfield services provider said its second-quarter profit rose 13 percent and issued a bullish outlook. Analysts praised the results. The stock rose $4.72, or 4.9 percent, to $101.50 in late-morning trading.

The Houston-based company said high oil and natural gas prices led to heavier spending among customers to find more fossil fuels, and that it expects oil producer spending to remain brisk. Profit jumped to $1.16 per share, above the $1.12 per share analysts polled by Thomson Financial expected, on average.

“While most investors were likely expecting a positive outlook from Schlumberger, we think that few expected a meaningful earnings beat,” Goldman Sachs analyst Charles Minervino said in a note to clients. “We expect the Schlumberger and the entire oil services sector to react favorably to the (second-quarter) results and bullish outlook.”

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