Schlumberger Sees Profits Plunge

Oilfield services major Schlumberger has posted third-quarter 2016 profit of $176 million, or 13 cents per diluted share, versus $989 million, or 78 cents per diluted share same time last year.

The company’s revenue fell 17 percent year-on-year to $7.16 billion, from $9 billion in the corresponding period in 2015, and also decreased 2 percent sequentially.

Schlumberger reported cash flow from operations of $1.4 billion, and free cash flow of $699 million.

Cameron revenue of $1.3 billion, of which 67 percent came from international markets, decreased 12 percent sequentially and 40 percent year-on-year. OneSubsea was impacted by project scheduling revisions and customer delays, Schlumberger noted.

Schlumberger chairman and CEO, Paal Kibsgaard, said: “Our third-quarter revenue decreased 2 percent sequentially, driven largely by the expected reduction in activity at Cameron as the order backlog of products declined. In spite of the challenging business environment, Cameron delivered strong financial results that were partly supported by excellent progress in the integration process.

“Excluding Cameron, revenue increased 1 percent sequentially driven by higher activity in the North America and Middle East Areas as well as in the Australia and Russia GeoMarkets.”

The company’s board of directors approved a quarterly cash dividend of $0.50 per share of outstanding common stock, payable on January 13, 2017 to stockholders of record on December 7, 2016.