Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Schlumberger posts third straight quarterly loss as oil rout hits services demand

share with twitter share with LinkedIn share with facebook
10/16/2020 | 01:46pm EDT
The exterior of a Schlumberger Corporation building is pictured in West Houston

(Reuters) - Top oilfield services provider Schlumberger NV on Friday posted its third straight quarterly loss as this year's slump in oil demand and prices due to the COVID-19 pandemic cut demand for its services.

The company kicked off earnings from hard-hit U.S. oilfield service providers as new lockdowns in some parts of the world due to a resurgence in infections threaten a recovery in oil demand. Global oil prices traded at $42.56 a barrel on Friday, down 36% this year..

North American markets have fared much worse than international markets, with Schlumberger's revenue from the region falling to $1.16 billion, from $2.85 billion a year earlier.

Total revenue plunged 38% to $5.26 billion.

Shares were down 5% at $15.52 in early trading.

"International activity is steady following budget resets completed in the third quarter," Chief Executive Officer Olivier Le Peuch said in a statement. North American business was "set for continued momentum," pointing to more drilled-but-uncompleted well completions and a modest resumption in drilling activity, he said.

International activity will begin expanding in 2022, Le Peuch told investors on a call, suggesting revenue from Schlumberger's largest sector would be flat next year.

Last month, Schlumberger agreed to sell its North American shale fracking business to rival Liberty Oilfield Services as part of Le Peuch's restructuring to focus on higher-tech businesses. He has bet on asset sales, as well as expense and job reductions, to weather weaker demand.

The company anticipates $1.5 billion in cost-savings as a result of its restructuring. Some 80% of that benefit was realized by the third quarter, Le Peuch told investors.

The company recorded charges of $310 million in the third quarter, adding to the over $12 billion it took in the previous two quarters. Job severance costs were $273 million in the quarter and $699 million year to date.

Le Peuch also is driving for new technology partnerships and accelerating Schlumberger's New Energy business, which aims to drive more sustainable energy output. That push fits with customers shifting their businesses to capitalize on the energy transition.

Schlumberger reported a net loss of $82 million, or 6 cents per share, for the quarter ended Sept. 30. Excluding charges and credits, it earned 16 cents per share in the quarter, helped by cost cuts.

The company reported a net loss of $11.38 billion, or $8.22 per share, a year earlier, due to impairment charges.

(Reporting by Shariq Khan in Bengaluru and Liz Hampton in Denver; Editing by Sriraj Kalluvila, Editing by Chizu Nomiyama and Steve Orlofsky)

By Shariq Khan and Liz Hampton

Stocks mentioned in the article
ChangeLast1st jan.
LIBERTY OILFIELD SERVICES INC. 3.11% 8.29 Delayed Quote.-25.45%
LONDON BRENT OIL -1.65% 41.66 Delayed Quote.-35.76%
SCHLUMBERGER LIMITED 0.65% 15.4 Delayed Quote.-61.69%
WTI -2.04% 39.715 Delayed Quote.-33.87%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
05:34pJ&J, AstraZeneca resuming trials of vaccines
04:33pEXCLUSIVE : Macron lays ground for netting Brexit compromise on fisheries
04:30pNATIONAL BANK OF MOLDOVA : Graphical analysis of money transfers from abroad in favour of individuals, September 2020
03:00pAryzta says talks with Elliott Advisors ended without binding offer
02:22pU.S. CDC reports 223,393 total deaths from coronavirus
01:55pItaly plans further curbs as coronavirus cases hit new record
01:10pG20 OF TWENTY FINANCE MINISTERS AND CENTRA : Empower Alliance meeting - Statement
12:20pItaly reports new daily coronavirus total, further curbs likely
12:20pItaly reports new record of 19,644 new coronavirus cases on saturday - health ministry
10:27aDubai announces $136 million extra stimulus package
Latest news "Economy & Forex"