Schlumberger Posts $10.1Bln Loss in 2019

Schlumberger has booked some $10.1 billion loss for 2019, despite relatively flat revenues, recognizing material pretax charges driven by market conditions, particularly in North America.

“In contrast, after two years of strong growth, North American revenue fell sharply, driven largely by the land market weakness affecting our OneStim pressure pumping business, as customers reached their budget limits earlier in the year and remained highly disciplined on capital spend,” said Olivier Le Peuch, Schlumberger CEO.

Full-year 2018 profit was at $2.1 billion on revenue of $32.8 billion ($32.9 billion in 2019).

The oilfield services giant reported Q4 2019 profit of $333 million, or $24 cents per share on $8.2 billion revenue.

However, in the third quarter 2019, Schlumberger recognized loss of close to $11.4 billion, or $8.22 per share on major impairments on goodwill and assets.

“As these charges were largely noncash and primarily related to goodwill, intangible assets, and fixed assets, they did not impede our ability to generate strong cash flow as we demonstrated in the second half of the year,” noted Le Peuch.

Schlumberger’s unit Cameron had full-year revenue of $5.3 billion, down 3 per cent against 2018.

OneSubsea had $785 million in orders for the fourth-quarter 2019 and backlog of $2.2 billion.

Subsea World News Staff