Schlumberger call: Redeploying Gulf assets, activating idle capacity

|About: Schlumberger Limited (SLB)|By:, SA News Editor

Schlumberger (NYSE:SLB) -- now down 2.5% after missing on revenues in earnings earlier today -- plans to redeploy assets from the Gulf of Mexico to more profitable use, execs said on the company's earnings call.

Demand for offshore services in the Gulf slid in the first quarter, says Operations President Patrick Schorn, with pricing falling too far to turn a profit.

Meanwhile, strength in North America is prompting the company to mobilize idled assets. "We've always said that as soon as we had a clear path to profitability, we would start activating our idled capacity," said CEO Paul Kibsgaard -- and so it will redeploy its entire idled hydraulic fracturing fleet by the end of the year, meaning new hiring.