Top oilfield services provider Schlumberger NV on Oct. 16 posted its third straight quarterly loss as this year’s prolonged slump in oil prices due to the COVID-19 pandemic compelled its major energy customers to shun drilling.
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 were around $42.66 per barrel on early Oct. 16.
North America has fared much worse than international services 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.
“International activity is steady following budgets resets completed in the third quarter,” CEO Olivier Le Peuch said in an earnings release. He also said North America was “set for continued momentum,” pointing to more drilled-but-uncompleted well completions and a modest resumption in drilling activity.
Shares were up 2.95% to $16.42 in pre-market trading.
Last month, Schlumberger agreed to sell its North American shale fracking business to rival Liberty Oilfield Services in move by Le Peuch to restructure. He has bet on asset sales, salary cuts, and job reductions to weather the stubbornly low oil prices. He has also pushed for new technology partnerships and to accelerate an expansion of Schlumberger’s New Energy business, which will focus on a more sustainable energy mix.
The company recorded charges of $310 million in the third quarter, adding to the over $12 billion it took in the previous two quarters.
Schlumberger reported a net loss of $82 million, or 6 cents per share, for the third quarter ended Sept. 30. Excluding charges and credits, it earned 16 cents per share in the quarter, helped by aggressive cost cuts.
The company reported a net loss of $11.38 billion, or $8.22 per share, a year earlier, due to impairment charges on some of the company's past investments.
Recommended Reading
Helmerich & Payne Seals $1.97B Deal for KCA Deutag
2025-01-16 - Helmerich & Payne has completed its acquisition of KCA Deutag International Ltd. as it positions itself as a global onshore drilling powerhouse.
GridStor Acquires Battery Storage Project from Black Mountain
2025-01-16 - GridStor’s acquisition of the battery energy storage project in Oklahoma from Black Mountain Energy Storage comes amid a need for new power resources to support the region’s electric system reliability.
Green Lantern Sells Vermont Solar Project to Sea Oak Capital
2025-01-15 - Green Lantern Solar’s 500-kW Brighton Solar project is sited on the closed portion of an operating family-owned gravel operation.
Report: Will Civitas Sell D-J Basin, Buy Permian’s Double Eagle?
2025-01-15 - Civitas Resources could potentially sell its legacy Colorado position and buy more assets in the Permian Basin— possibly Double Eagle’s much-coveted position, according to analysts and media reports.
Amplify to Add D-J, Powder River Assets in Merger Agreement with Juniper Capital
2025-01-15 - Amplify Energy Corp. is combining with certain Juniper Capital portfolio companies in a merger agreement that adds 287,000 acres in the Denver-Julesburg and Powder River basins.