Schlumberger turned in a net profit for the second quarter as revenues increased, but the bottom line was down as against the first period.

Net income for the three months to the end of June was $430 million as against a loss a year earlier of $74 million. However, this was down against the net profit in the first three months of this year of $525 million.

Excluding charges and credits, the company pulled in $594 million, compared with $488 million a year earlier and the same $525 million in the first quarter.

Revenues hit $8.3 billion, up from $7.46 billion a year ago and $7.83 billion in the first quarter.

North America continued to be the standout performer in terms of revenue, pulling in $3.14 billion in the period as against $2.84 billion in the first quarter and $2.2 billion a year ago.

Elsewhere, revenues in Europe/CIS/Africa and Middle East/Asia were relatively unchanged, but they dropped in Latin America as against a year ago, though were up on the first period.

Growth was driven largely by the production division, with revenues of $3.26 billion up 10% on the first quarter and 30% year-on-year compared with $2.5 billion - again with the North American shale market being the main driver.

The reservoir characterisation and drilling segments each posted revenues rises of 5%, due to higher international activity and a seasonal rebound in the northern hemisphere.

Schlumberger also cut costs in the quarter, completing a process to remove one whole layer of management and a support structure.

However, associated costs together with some operation delays dented the pre-tax operating margins.

Analysts at investment bank Cowen & Company wrote in a note on Friday: "Earings-per-share (were) in-line with pre-release, revenue characterisation and Cameron beat our model, drilling missed.

"Strong international revenues (were) up 6%, while Middle East (was) up just 3% and bullish commentary.

"International pricing said to have improved during quarter and price discussions continuing for both new and existing contracts.

"Free cash flow turns positive and third-quarter earnings-per-share seems achievable but looking for more commentary on the conference call."

Chief executive Paal Kibsgaard said: "The market fundamentals continue to evolve favorably for our international business as the global balance of crude oil supply and demand tightens further.

"Global GDP growth remains strong, with any impact of headwinds from the US-China trade dispute likely to become clearer in the next few quarters.

"Despite Opec’s recent decision to increase production, the global supply base continues to weaken from geopolitical pressure to remove Iranian production from the market, no apparent resolution to falling production in Venezuela, and Libyan exports continuing to be volatile.

"In North America, lack of additional pipeline capacity in the Permian basin is becoming an increasing constraint to production growth. At the same time, spare production capacity, which is essentially limited to only a few Opec countries, is now nearing its lowest level for more than a decade while decline in the world’s mature production base continues to accelerate.

"These developments underline the growing need for E&P spending to increase significantly, particularly in the international markets, as it is becoming more and more apparent that the new projects expected to come online during the next few years will not be sufficient to meet the increasing demand."

Kibsgaard said these views underpin the company's confidence in its business ourlook, with the company having capitalised on the years-long industry downturn to expand its portfolio.

"We are primed and ready to capture the growth opportunities coming from the positive market fundamentals, and we are excited by the activity and pricing opportunities that the new industry landscape presents," Kibsgaard said.

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Schlumberger posts profit as revenues rise