April 24 (UPI) -- Following its industry peer, Schlumberger, oilfield services company Weatherford said its revenue for the first quarter was lower despite the robust market.
Weatherford International, one of the largest oilfield services in the world, report first quarter revenue at $1.42 billion, down 4 percent from the fourth quarter, but 3 percent higher year-over-year. It attributed the decrease from the fourth quarter to seasonal declines in the North Sea and in Russia.
"The year-over-year increase was primarily due to activity increases in the U.S., Argentina and Mexico in the Western Hemisphere and Kuwait, Iraq, Russia and Saudi Arabia in the Eastern Hemisphere, partially offset by a decrease in Venezuela as a result of a change in accounting for revenue to cash basis and depressed offshore markets in the North Sea, West Africa and Asia," its quarterly statement read.
Weatherford, which has headquarters in Switzerland, provides services in the Eagle Ford shale play in Texas and for more than 400 wells in the Bakken shale reservoir in North Dakota, among the most actively producing regions in the United States. In Latin America, operations include onshore Mexico. Among the Middle East players, Iraq is one of the members of the Organization of Petroleum Exporting Countries that's doing the least to comply with voluntary production cuts.
Crude oil prices are at multi-year highs, indicating the market has recovered from the decline in recent years that forced oil and gas producers to invest less in some of the services that companies like Weatherford provide. Several of the oilfield services companies are consolidating their work through various joint ventures.
Schlumberger, the largest oilfield services company, reported first quarter earnings of $7.8 billion were up 14 percent from the same period last year, but down 4 percent from the fourth quarter. Unlike Weatherford's activity, Schlumberger reported weakness in its Latin American segment, but saw support from the North Sea and Russia.
Schlumberger CEO Paal Kibsgaard said he expected supply-side constraints to emerge in the mid-term future that would require significant investments to address.
Weathford three years ago closed six service facilities and 90 operating facilities in North America while at the same time completing its target of cutting payrolls by 14,000. President and CEO Mark McCollum said his company was continuing on its transformational path beyond the market downturn.
"I am excited about our progress as we continue to build momentum," he said in a statement.