However, the New York-based company said that SchlumbergerSema’s systems integration and consulting operations remain under pressure, particularly in Sweden and France, and that favorable exchange rates made a big impact on the performance of its European operation.

In the second quarter ending June 30, SchlumbergerSema grew pre-tax operating profit to $24m from $4m in the year-ago quarter, on revenue that increased 16% to $840m. The company admitted that it enjoyed a $94m positive impact from the strengthening of European currencies, but said that it also experienced growth in its UK public sector business.

No mention was made of a possible sale of the bulk of SchlumbergerSema’s outsourcing business in yesterday’s earnings release, although ComputerWire expects an announcement to be made by Schlumberger management on this subject during the next week.

SchlumbergerSema is thought to be keen to hang on to SchlumbergerSema’s IT services operating focused on the energy sector, where it has achieved the greatest synergy following the $5.2bn takeover of Sema in 2001. This unit grew revenue 4% sequentially to $197m during the quarter, which included new contract wins with Petrobras Rio and Perenco.

The EMEA region was the strongest performer due to the strength of local currencies, reporting a 19% increase in revenue to $658m, representing 78% of sales. However, operating profit fell 25% year-on-year to $25m, with the company blaming lower fee rates on systems integration contracts in Sweden and France. The company said it suffered overcapacity in France – a problem shared by rival Cap Gemini Ernst & Young, which last week cut 3% of its headcount in the country.

In the Americas region, SchlumbergerSema made an operating profit of $4m compared to a year-ago loss of $14m, on revenue that increased 7% to $132m. It pointed to strong growth in public sector contracts, but added that the energy sector remains its biggest revenue source in the region. The company blamed the SARS virus for a 25 decline in sales in Asia to $51m, and said that revenue from its telecoms business declined 25% year-on-year to $17m.

Source: Computerwire