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Image courtesy of Schlumberger.

Schlumberger reported a double-digit dip in full year revenues last Friday while fourth quarter revenues held steady.

The Houston-based company reported a full-year 2016 revenue of $27.8 billion, a 22 year-over-year decline.

The company said the full year revenue dip came “despite three quarters of activity from the Cameron Group that contributed $4.2 billion in revenue.”

Excluding Cameron, consolidated revenue declined 34 percent year-over-year

Full-year 2016 pretax operating income fell 50 percent-year-over-year to $3.27 billion, including the $653 million contribution from the Cameron Group.

Net income on GAAP basis fell to a $1.68 billion loss for the full year compared to an income of $2.07 billion in 2015.

Full-year net income, excluding charges and credits, declined to $1.55 billion compared to $4.29 billion for the full year of 2015.

Diluted earnings per share (EPS) on a GAAP basis fell to a loss of $1.24 for the full year, down from earnings of $1.63 per share in 2015.

Fourth quarter revenue ticked up 1 percent sequentially and but declined 8 percent year-over-year to $7.10 billion.

Fourth quarter pretax operating income declined 37 percent year-over-year to $810 million.

Schlumberger reported a $204 million fourth quarter net loss on a GAAP basis compared to a $1.01 billion loss in the year-ago quarter.

Fourth quarter 2016 net income, excluding charges and credits, declined 54 percent year-over-year to $379 million.

Diluted EPS on a GAAP basis came in at a loss of $0.15 per share in the fourth quarter compared to a loss of $0.81 per share for the same period in 2015.

Schlumberger’s North America revenue grew 4 percent sequentially to $1.76 billion in the fourth quarter.

Latin America revenue declined 4 percent sequentially to $952 million in the fourth quarter.

Fourth quarter Europe/CIS/Africa ticked down 2 percent sequentially to $1.83 billion.

Middle East & Asia fourth quarter revenue climbed up to $2.49 billion, a 5 percent increase from the third quarter.

Reservoir Characterization Group revenue declined 23 percent year-over-year to $1.69 billion in the fourth quarter, with 76 percent of that revenue coming from international operations.

Reservoir Characterization Group pretax operating income slid 39 percent year-over-year to $316 million in the fourth quarter.

Fourth quarter Drilling Group revenue fell to $2.01 billion, a 32 percent decline compared to the same period in 2015.

Drilling Group pretax operating income sank 53 percent year-over-year to $234 million in the fourth quarter.

Production Group revenue came in at $2.17 billion in the fourth quarter, marking a 5 percent sequential gain but a 17 percent year-over-year decline.

Production Group pretax operating income slid down to $132 million in the fourth quarter, a 56 percent drop compared to the same quarter in 2015.

Cameron Group revenue fell 36 percent year-over-year to $1.34 billion in the fourth quarter.

Cameron Group pretax operating income sank 47 percent year-over-year to $188 million in the fourth quarter.

Schlumberger Chairman and CEO Paal Kibsgaard said that OPEC and non-OPEC agreements production agreements should “with a certain lag, accelerate inventory draws, support a further increase in oil prices, and lead to increased E&P investments.”

Kibsgaard said his company expects the 2017 recovery in the international markets “to start off more slowly, driven by the economic reality facing the E&P industry.”

Kibsgaard added the slow international recovery will “likely lead to a third successive year of underinvestment.”

“These factors together are increasing the likelihood of a significant supply deficit in the medium term, which can only be avoided by a broad-based global increase in E&P spending, which we expect will start unfolding in the later parts of 2017 and leading into 2018,” Kibsgaard added.