Halliburton plans to release its second-quarter results on Monday, while Baker Hughes is set to report on Tuesday.

The average estimate among 33 Estimize users was for earnings of $0.82 per share and revenue of $9.34 billion.

But the company said it believes the rig count has touched the bottom and sees a possible slow increase in land drilling and completion activity in the second half of the year.

Analysts had expected adjusted EPS of $US0.79 on revenues of $US9.05 billion, according to Bloomberg.

Further, with the erosion of the pricing power, Schlumberger’s North American margins experienced a severe hit and fell to 10.2% as opposed to the 18% margins generated in the same quarter previous year.

Kibsgaard noted that Schlumberger’s visibility remains limited but also pointed out that, in terms of oil supply, the “first signs of flattening North American production have appeared while OPEC-marketed supply has been increased once again”.

In April this year, Schlumberger had forecasted North American exploration & production (E&P) spending to fall 30%.

The Paris, France-based company posted quarterly net earnings of $1.12 billion, or $0.88 per share, compared to $1.6 billion, or $1.21 per share, in the year-ago period.

Schlumberger thinks the plunge in the oil rig count is near the bottom.

Explorers are planning to slash more than $100 billion of spending this year after Brent, the global crude benchmark, fell by half from a high in June 2014.

The pending deal between Halliburton Co. and Baker Hughes Inc., the world’s second- and third-largest oil service providers, is creating uncertainty among worldwide customers and may be resulting in a smaller number of work being offered up for bidding, Kibsgaard said.

Investors will be questioning how much the worldwide margins will fall in coming quarters as customers continue pressing for lower service prices, Robin Shoemaker, an analyst at KeyBanc Capital Markets in New York, who rates the shares the equivalent of a hold and owns none, said in a phone interview.

The company is expecting the largest drop in E&P investment to occur in North America, where 2015 spend is expected to be down by more than 35%.

Schlumberger helps oil producers drill and frack wells.