Schlumberger Cuts 21,000 Jobs Amid Historic Oil Downturn
24 Juli 2020 - 2:21PM
Dow Jones News
By Collin Eaton
Schlumberger Ltd., the world's largest oil-field services
company, is cutting about 21,000 jobs as oil producers make steep
spending reductions in response to a historic drop in prices amid
the coronavirus pandemic.
Schlumberger recorded $3.7 billion in impairment charges in the
second quarter, including about $1 billion in severance charges, it
said Friday.
"This has probably been the most challenging quarter in past
decades," Chief Executive Olivier Le Peuch said, noting its revenue
fell sharply because of an unprecedented fall in oil-field activity
in North America.
Mr. Le Peuch said oil demand is slowly returning to normal and
is expected to improve as governments lift restrictions in support
of increased consumption, paving the way for a modest increase in
fracking activity in North America.
"Any further material Covid-19 disruption or significant setback
in oil demand arising from a slower economic recovery could present
downside risks to this outlook," he said.
Schlumberger reported a net loss of $3.4 billion, or $2.47 a
share, compared with net income of $492 million, or 35 cents a
share, in the same period last year. Revenue declined 35%
year-over-year to $5.4 billion, with North American sales down 58%
to about $1.2 billion.
Its earnings per share, excluding charges and credits, was 5
cents a share.
Schlumberger has corporate offices in Paris, Houston, London and
The Hague.
(END) Dow Jones Newswires
July 24, 2020 08:06 ET (12:06 GMT)
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