Schlumberger Posts Loss in Q2
Oilfield services major, Schlumberger, has reported net loss of $2.16 billion versus net income of $1.12 billion in the corresponding period in 2015.
The company’s second-quarter revenue fell to $7.16 billion, from $9 billion same time last year.
According to Schlumberger chairman and CEO Paal Kibsgaard, in the second quarter market conditions worsened further. “In spite of the continuing headwinds we now appear to have reached the bottom of the cycle,” said Kidsgaard.
He explained that “as a result of the weakness in activity that will persist through 2016 as expected, we have made another significant adjustment to our cost and resource base, including the release of more than 16,000 employees during the first half of 2016 and a further streamlining of our overhead, infrastructure, and asset base. This has led to $646 million in restructuring charges in the second quarter for the reduction in our workforce, as well as a non-cash $1.9 billion impairment charge for fixed assets, inventory, and multiclient seismic data. We also recognized $335 million in merger and integration charges relating to the Cameron acquisition.”
The acquisition of Cameron contributed revenue of $1.5 billion, the company said.
Furthermore the CEO said that the company is now shifting its focus to recover the temporary pricing concessions that have been made, and to renegotiate contracts with limited promise of longer-term financial viability.
