Schlumberger Ltd. (NYSE: SLB) reported fourth-quarter and full-year 2016 results before markets opened on Friday. The oil field services firm reported adjusted diluted quarterly earnings per share (EPS) of $0.27 on revenues of $7.11 billion. In the same period a year ago, Schlumberger reported adjusted EPS of $0.65 on revenues of $7.74 billion. Fourth-quarter results also compare to the consensus estimates for EPS of $0.27 on revenues of $7.07 billion.

For the full year, the company reported adjusted EPS of $1.14 on revenues of $27.81 billion, compared with 2015 EPS of $3.37 and revenues of $35.48 billion. Analysts were looking for EPS of $1.15 and revenues of $27.8 billion.

On a GAAP basis, Schlumberger posted a quarterly per-share loss of $0.15 and a full-year net loss per share of $1.24. A year ago, the fourth-quarter net loss totaled $0.81 and EPS for the full-year came in at $1.63.

Schlumberger took a $536 million restructuring charge in the fourth quarter and further charges of $139 million related to the Cameron acquisition and the currency devaluation in Egypt.

CEO Paal Kibsgaard touted Schlumberger’s 1% sequential revenue growth, noting that it was driven by “strong activity in the Middle East and North America.”

The CEO is optimistic:

We maintain our constructive view of the oil markets, as the tightening of the supply and demand balance continued in the fourth quarter, as seen by a steady draw in OECD stocks. This trend was further strengthened by the December OPEC and non-OPEC agreements to cut production, which should, with a certain lag, accelerate inventory draws, support a further increase in oil prices, and lead to increased E&P investments.

We expect the growth in investments to initially be led by land operators in North America, where continued negative free cash flows seem less of a constraint, as external funding is readily available and the pursuit of shorter-term equity value takes precedence over full-cycle return on investment. E&P spending surveys currently indicate that 2017 NAM E&P investments will increase by around 30%, led by the Permian basin, which should lead to both higher activity and a long overdue recovery in service industry pricing.

During the second quarter Schlumberger repurchased 1.5 million shares of stock at an average price of $78.21 per share for a total cost of $116 million.

Schlumberger did not offer guidance in its press release, but consensus estimates call for first-quarter EPS of $0.30 and revenues of $7.18 billion. For the full year, EPS is forecast at $1.91 on $31.48 billion in revenue.

2017 capital spending is forecast at $2.2 billion, slightly more than the $2.1 billion 2016 total.

Shares traded down about 1.1% in Friday’s premarket to $86.40. The stock’s 52-week range is $62.97 to $87.84, and the high was posted Thursday. The 12-month consensus price target was $96.12 before results were announced.

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