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Long Schlumberger - Recent Developments Strengthen Long Term Growth Prospects

Schlumberger's (SLB) recent earnings announcement may have been a disappointment but there is reason to believe that the company holds a long term growth view despite the turmoil that the industry is in. With an increase in its quarterly dividends, the company has not only attempted to foster investor confidence but has also indicated that it is confident with its business growth in the future.

Recap of fourth quarter results

Schlumberger's quarterly revenues grew by 6% to $12.64 billion, driven by an increase in activity in the North American and the Middle Eastern and Asian regions. Gross and operating margins of the company were up during the quarter. Gross margins were up from 29.4% to 31.8%, while operating margins increased from 26% to 28.2% in the recently concluded quarter.

The increase in revenue did not trickle down to the lower tiers of the financial statement. The company reported net income… Read More …