Schlumberger Ltd. SLB,
He said Friday that he had a net loss of $ 3,434 billion, or $ 2.47 a share, in the second quarter, after revenue of $ 492 million, or 35 cents a share, in the same period last year. Excluding charges and credits, the oil company had adjusted earnings per share of 5 cents, before the FactSet consensus for a loss of 1 cent. Revenue fell 35% to $ 5,356 billion from $ 8,269 billion, below the FactSet consensus of $ 5.373 billion. “This has probably been the most challenging quarter in recent decades,” Chief Executive Olivier Le Peuch said in a statement. Revenue fell 28% from the first quarter, “caused by the unprecedented decline in activity in North America, and the decline in international activity due to downward revisions to customer budgets fueled by disruptions of COVID-19. This speaks volumes about an industry confronted with historical oil demand and supply imbalances caused by the destruction of demand from the global containment effort of COVID-19. ” North American revenue fell 48% from the first quarter as customers reduced spending. International revenue fell 60% from the first quarter, with Latin America and Africa seeing the worst declines due to COVID-19 restrictions and declining deepwater activity, he said. The company is reorganizing and combining its 17 product lines into four divisions, geographically restructuring around five key business basins and streamlining management, he said. It is cutting 21,000 jobs as part of the restructuring. Schlumberger hopes to eliminate $ 1.5 billion of costs permanently. “Looking at the macro view in the short term, oil demand is slowly starting to normalize and is expected to improve as government measures support consumption,” said the CEO. “However, subsequent waves of potential revival of COVID-19 pose a negative risk for this prospect.” Shares fell 2.5% pre-market and are down 52% in the year to date, while the S&P 500 SPX,
It has gained 0.2%.
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