• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 1 hour The 5 Scary New Rules Of Upside-Down Capitalism
  • 1 min Hydrogen Hurdles in Japan
  • 2 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 1 hour Winter Storms Hitting Continental US
  • 11 hours More dumbed down? re Hong Kong Act of Congress
  • 2 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 5 hours Impeachment S**te
  • 3 hours Contaminated Oil
  • 3 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 13 hours Petroleum Industry Domain Names
  • 15 hours U.S. Shale Output may Start Dropping Next Year
  • 16 hours Aramco IPO magic trick
  • 3 hours Conoco next gen test wells Vintage 5 (V5) 20% recovery and say " We can do even better "
  • 2 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 3 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018

Drilling Giant Posts $11 Billion Loss

Oil Rig

The world’s largest oilfield services provider, Schlumberger (NYSE:SLB), reported on Friday a net loss of US$11.38 billion for the third quarter, compared to a US$644-million profit for Q3 2018, after a hefty pretax charge of US$12.7 billion weighed on the most recently reported results.

The pretax charge, driven by market conditions, is almost entirely non-cash and primarily relates to goodwill, intangible assets, and fixed assets, said Schlumberger, which also flagged continued slowdown in North America’s drilling growth.

The slowdown resulted in an 11-percent yearly decline in North American revenue for Schlumberger. North American revenue dropped to US$2.85 billion in the third quarter of 2019 from US$3.189 billion in the same period of 2018.

Outside North America, the world’s top oilfield services firm reported an 8-percent annual increase in international revenues to US$5.629 billion.

“Sustained international activity drove overall growth despite mixed results in North America,” Schlumberger’s chief executive Olivier Le Peuch said, commenting on the results.

Schlumberger’s North America business saw strong offshore sales, but growth in land drilling was “minimal,” due to slowing activity and further pricing weakness, he added.

“This quarter’s results reflected a macro environment of slowing production growth rate in North America land as operators maintained capital discipline, reducing drilling and frac activity,” Le Peuch said.

Related: Oil Bribery And Violent Protests Rattle Ecuador

Schlumberger also pointed to increased market uncertainty, with trade disputes challenging global economic growth and weighing on the outlook for oil demand.

As early as the second quarter of this year, Schlumberger warned investors of the weakness on the North American oil services market, as land investment drops because of the cash flow constraints of E&P operators. Competitor Halliburton also admitted then that the North American onshore drilling market has become “challenging.”

Amid the further slowdown in shale drilling growth, Halliburton said earlier this month that it would lay off 650 workers across four U.S. states.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play