Schlumberger posts over USD11 billion loss for 3rd quarter

HOUSTON (Xinhua) – The world largest oil field service company Schlumberger Limited reported a USD11.38 billion loss for the third quarter’s net income on Friday.

The company ended the third quarter with revenue of USD8.5 billion, a three per cent sequential increase while pre-tax segment operating income hit USD1.1 billion, up 13 per cent.

The third quarter results reflected a USD12.7 billion pre-tax charge driven by market conditions. This charge was almost entirely non-cash and primarily related to goodwill, intangible assets, and fixed assets.

Schlumberger CEO Olivier Le Peuch said, “Sustained international activity drove overall growth despite mixed results in North America. The North America business saw strong offshore sales with minimal growth on land due to slowing activity and further pricing weakness.”

He said that the sequential international growth was led and driven by such areas as Europe, Africa, Asia and the Commonwealth of Independent States (CIS). “Growth in China was primarily driven by increased drilling and exploration activity in addition to equipment sales,” he said.

Meanwhile, Peuch said the Latin America revenue declined nine percent sequentially on lower activity in Argentina and Mexico.

According to Peuch, the results reflected a macro environment of slowing production growth rate in North American land as operators maintained capital discipline, reducing drilling and fracturing activity.

“Our year-to-date high single-digit international revenue growth continues to be underpinned by international investment levels. Market uncertainty, however, is weighing on future oil demand outlook in a climate where trade concerns are seen as challenging global economic growth,” he said.

Schlumberger is the world’s leading provider of oil field services from exploration through production, and integrated pore-to-pipeline solutions that optimise hydrocarbon recovery to deliver reservoir performance.

Schlumberger Limited has executive offices in Paris, Houston, London, and The Hague, and reported revenues of USD32.82 billion in 2018.

Schlumberger Limited’s third quarter results reflected a USD12.7 billion pre-tax charge driven by market conditions. PHOTO: AP