SCHLUMBERGER: 'We believe that the North American rig count may now be touching the bottom'

Schlumberger thinks the plunge in the oil rig count is near the bottom.

The oilfields services company reported second-quarter earnings on Thursday afternoon.

Revenues came in at $US9 billion, down 12% year-over-year. Diluted earnings per share came in at $US0.88.

Analysts had expected adjusted EPS of $US0.79 on revenues of $US9.05 billion, according to Bloomberg.

The US oil rig count plunged for 25 straight weeks this year following the oil crash. The count has been positive for the last two weeks, leading some analysts to believe that we may have seen the bottom.

In the earnings release, CEO Paal Kibasgaard said: “E&P investment in North America is now expected to fall by more than 35% in 2015 driven by lower land activity and increased pricing pressure. We believe that the North American rig count may now be touching the bottom, and that a slow increase in both land drilling and completion activity could occur in the second half of the year.

Earlier on Thursday, Schlumberger announced a quarterly dividend of $US0.50 per share of outstanding common stock.

In the wake of the oil crash, the company cut nearly 10,000 job cuts to trim costs

The stock is down 27% over the last 12 months, and down 2% for the year.

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