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Schlumberger Books The third loss this year as bites from the oil crisis

The world’s largest oil service provider, Schlumberger (NYSE: SLB), reported its third consecutive quarterly loss on Friday as exploration and production companies drastically reduced demand for drilling in the United States and elsewhere due to low oil prices. and weak oil demand.

Schlumberger recorded a loss of $ 82 million for the third quarter. The loss was much narrower than the loss in the second quarter of $ 3.434 billion, the second consecutive quarterly loss due to a dramatic drop in US shale revenues and asset impairments in what was “probably the most challenging quarter in the past decades, ”CEO Olivier Le Peuch said in July.

While the loss for the third quarter is much lower than in the second, Schlumberger̵

7;s revenue is still declining in the third quarter compared to the second quarter. Revenues fell steadily by 2%, with revenues in North America falling by 2% and international revenues falling by 1%.

Compared to the same quarter last year, the decline in revenue was dramatic – by 59% in North America and 27% elsewhere.

Schlumberger’s exposure to North America is lower than that of Halliburton, for example. In addition, Schlumberger said last month that he was selling his North American fracking business to Liberty Oilfield Services for a minority stake in a new combined company after the collapse in the price of oil crushed the activity of American shale.

Looking back to the fourth quarter, CEO Le Peuch commented in a statement today:

“In North America, conditions are being created for continued momentum with improved DUC completion work on American soil and a moderate resumption of drilling in the United States and Canada.”

“Overall, internationally, we see the next two quarters as a transition period for our industry at the heart of this cycle,” the CEO said, but warned that “the short-term recovery remains fragile due to potential subsequent waves of COVID-19. poses a significant risk to this perspective. ”

By Tsvetana Paraskova for Oilprice.com

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