Tomahawk, WI 10/21/2013 (BasicsMedia) – Schlumberger Limited. (NYSE:SLB) products, services and solutions are mostly designed for the oil and gas industry. SLP enjoys a market cap of more than $124.3 billion, and offers project management and information solutions as well as technology that benefit the production and exploration of oil and gas internationally. The company announced that its latest quarterly financials included a 20% increase in profits. This is quite impressive bearing in mind that the oil and gas industry has faced a number of hurdles in 2013, just like any other industry.

SLP Raises $1.72 Billion in Profits

SLP’s latest quarterly profits indicate that the company made a profit of $1.72 billion. This translates to around $1.29 per share, and compares quite favorably to the $1.07 per share that the company reported last year during the same period. SLP’s profits during the same quarter in 2012 were $1.42 billion. Therefore, the company has seen its profits increase in the last 12 months. Its revenue has not been left behind, seeing that it grew by 11% to $11.61 billion. The question is; which factors helped SLP to increase its profits and revenue in Q3 of 2013?

SLP says that revenue from its oil and gas field services in Middle East and the entire Asian region, rose substantially in this quarter. Growth in the exploration and production of oil and gas in both Iraq and Saudi Arabia played a major role in ensuring SLP’s latest quarterly financial results were impressive. This trend in the recent years has helped SLP’s compensate for its poor showing in onshore North American revenues. The company’s revenue and profits beat Wall Street analysts’ expectations for the same period.

SLP Raises $11.81 Billion in Revenue

Where analysts had expected SLP to raise $11.58 billion in revenue, the company went one better by posting revenues of $11.61 billion. Its revenues from the North America oil-field business grew by 9.1%, compared to the combined 6.5% growth experienced across Europe, Africa and in the Commonwealth of Independent States. The Middle East and Asian region saw an increase of around 25% in revenue growth, compared to revenue growth of 4% in the Latin American region. This is not a new thing but is something SLP has experienced for a while now.

The question now is whether SLP will continue posting similar results going forward. Investors are interested to learn whether the growth in profits and revenue for SLP will continue into the near future or not. It is hard to say with any degree of certainty since the global market can quickly change and make SLP unable to post further growth in revenues and profits. Now, since investments are all about trends, and the fact that SLP has been posting this growth in revenue and profits for some time now, I expect this to continue for quite some time.

SLP faces a number of challenges, and if the world makes a significant shift to alternative energy, this may lead to less interest in the oil and gas industry that the company depends on for its profits and revenue.

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