Replies to post #5445 on The Rising Influence of Rising Affluence

[DewDiligence]

So, all told, would you rate the P/E ratios of SLB, HAL, BHI, and CLB as reasonable? If not, which ones stand out, IYO?

[DewDiligence]

SLB Issues Earnings Warning

[Probably bad news for CLB, but perhaps not too bad insofar as CLB already took its punishment ( a 20% selloff) in October (#msg-80106286).]

http://online.wsj.com/article/SB10001424127887323297104578179283739349470.html

›December 14, 2012, 11:45 a.m. ET
By ALISON SIDER And SAABIRA CHAUDHURI

Schlumberger Ltd. said Friday its earnings for the current quarter will suffer because of contractual delays in its international operations and slow North American drilling activity.

The world's largest oil-field-services provider said it expects its fourth-quarter earnings to be five cents to seven cents lower than they would have been otherwise, citing delays in Europe, the Commonwealth of Independent States and Africa, as well as from higher-than-usual seasonal slowdowns in activity.

Analysts polled by Thomson Reuters were expecting earnings of $1.13 a share for the company's fourth quarter.

Schlumberger said land-drilling activity in the U.S. and western Canada is weaker than expected. There are 187 fewer rigs operating in the U.S. than there were a year ago, and 98 fewer in Canada, according to the Baker Hughes Inc. rig count conducted Dec. 7.

Schlumberger's massive international presence had insulated it from the North American downturn. The company reported a profit of $1.42 billion, or $1.07 per share, during the third quarter.

Simmons analysts said Friday that Schlumberger's announcement wasn't all that surprising and that spending by international oil companies will likely ease in the coming year. "The rate of growth in '12 will be difficult to match due to the absence of surplus cash flow generation for international oil companies and continuing introspection in Brazil," they said.

Schlumberger's international revenue should grow in 2013, "but matching this year's top-line surge is a challenge," the analysts said.

Oil-field-services companies Baker Hughes and Halliburton Co. have seen profits drop as exploration-and-production companies have pulled back in North America in an effort to stretch capital budgets through the end of the year. Also their margins have been compressed as demand for services in natural gas fields has declined relative to drilling in oil rich areas, where drilling is more expensive.‹

[DewDiligence]

WSJ argues that SLB is cheap, relatively speaking:

http://online.wsj.com/article/SB10001424127887324763404578431010070604942.html

Update following today’s 1Q13 earnings:
http://online.wsj.com/article/SB10001424127887323309604578432601045343028.html