* CEO says difficult to comment on any future impact on
* Shares fall as much as 3.5 pct
* Shares down on "unreasonable" earnings expectations,
(Adds details on Russia operations, analyst comments)
By Swetha Gopinath
July 18 Oilfield service provider Schlumberger
Ltd, which drills with Rosneft on the Russian
island of Sakhalin, said there was no "real impact" on its
business in Russia, two days after the United States slapped
sanctions on Rosneft.
Washington imposed sanctions on Rosneft, Russia's largest
oil producer, and Novatek, the country's
second-largest gas producer, over Moscow's role in the Ukraine
"As of now, there is no impact from sanctions," Schlumberger
Chief Executive Paal Kibsgaard said on a post-earnings
"Whether there will be impacts in the future is a bit
difficult to comment on," he said, adding that it was "business
as usual" for now.
Schlumberger's shares fell as much as 3.5 percent in early
trading on Friday. Analysts attributed this fall to
"unreasonable" earnings expectations from the company.
Schlumberger reported better-than-expected revenue and
profit after the market closed on Thursday as drilling activity
rose in the United States and offshore Gulf of Mexico.
A recovery in activity in Russia after a harsh winter also
helped the company's quarterly results.
"The underlying activity outlook - both offshore and on land
- in Russia continues to look solid, and with recent contract
awards in, we expect to finish the year on a strong note,"
Schlumberger signed an agreement with Russia and Gazprom
Neft earlier this year to collaborate on technology
for the planned Bazhenov shale development project in the
Priobskoe oilfield in Western Siberia.
Gazprom Neft is the oil-producing arm of Russian state gas
company Gazprom, which is not facing any U.S. or
European Union sanctions.
Schlumberger also has offshore projects in Sakhalin.
Russia accounts for less than 5 percent of Schlumberger's
total revenue, Simmons & Co International analyst Bill Herbert
"(Sanctions against Russia are) a risk and Schlumberger is
vigilant about it and I clearly think they have a contingency
plan in the event that (further) sanctions do unfold," he said.
Further sanctions against Russia are likely if an
investigation establishes the country's links to the downing of
a Malaysian airliner on Thursday, the Washington-based Institute
of International Finance said.
Schlumberger's shares were down 1.5 percent at $112.91 in
late morning trading on the New York Stock Exchange.
(Additional reporting by Ashutosh Pandey in Bangalore; Editing
by Saumyadeb Chakrabarty and Kirti Pandey)