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Schlumberger posts quarterly loss as oil rout triggers $3.7 bln charge

Credit: REUTERS/RICHARD CARSON

Oilfield services giant Schlumberger NV on Friday reported its second-straight quarterly loss after recording a $3.7 billion charge, including costs related to over 21,000 jobs cuts, amid this year's oil price crash.

Adds segment details, outlook, CEO comment, background

July 24 (Reuters) - Oilfield services giant Schlumberger NV SLB.N on Friday reported its second-straight quarterly loss after recording a $3.7 billion charge, including costs related to over 21,000 jobs cuts, amid this year's oil price crash.

The company rounded off second-quarter earnings reports from major U.S. oilfield services providers that laid bare the damage wreaked by the coronavirus crisis, particularly in North America.

Even though crude prices have recovered from the historic drops recorded in March and April, they are still down around 33% for the year, and fears of a COVID-19 resurgence challenge the company's outlook about a near-term normalization of oil prices, Chief Executive Officer Olivier Le Peuch said in a statement.

The company's North America revenue fell to $1.18 billion in the second quarter, less than half of what it was a year earlier, with only slightly better conditions expected in the current quarter.

"The conditions are set in the third quarter for a modest frac completion activity increase in North America, though from a very low base," Le Peuch said.

The world's largest oilfield services provider reported a net loss of $3.43 billion, or $2.47 per share, for the three months ended June 30, compared with a profit of $492 million, or 35 cents per share, a year earlier.

The company said the charges included $1 billion in severance payments during the quarter related to the job cuts.

Excluding charges and credits, the company earned 5 cents per share.

Schlumberger, Halliburton's N. America woeshttps://tmsnrt.rs/3jCLCvK

(Reporting by Shariq Khan in Bengaluru; Editing by Sriraj Kalluvila)

((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780, outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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