Schlumberger Ltd. (Schlumberger) has reported significantly lower operating revenues and earnings for 2Q 09, reflecting the impact of the ongoing slump in global Exploration & Production (E&P;) spending. The company warns that this trend is likely to continue impacting its results over the near term, and we expect E&P;spending to remain tight until the global economy enters a recovery phase. Therefore, considering the weak near-to-medium term outlook for…

Schlumberger Ltd.’s (Schlumberger) NYSE common stock price has increased significantly, achieving our target price on 19 March 2009, since we upgraded the stock from a HOLD to a BUY in our company news alert dated 24 February 2009, which we believe reflects the increase in crude oil prices and the general increases in the NYSE composite index over the same period. However, we remain concerned regarding Schlumberger’s performance over the medium term, given…

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Going forward, Management remains concerned that a reduction in E&P;spending levels from various oil and gas companies, especially in North America and Russia, will impact demand for the company’s services during FY 2009. However, a recovery in global economic conditions from FY 2010 onwards will improve demand for Schlumberger’s services and technologies supporting its top-line and margin improvement going forward, albeit at a…