UPDATE: Schlumberger revenue drops 35% to fall short of estimate and cut 21,000 jobs

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Schlumberger Ltd. SLB,
+ 0,67%
said on Friday it posted a second quarter net loss of $ 3.434 billion, or $ 2.47 per share, after earning $ 492 million, or 35 cents per share, in the same period a year ago . Excluding charges and credits, the oil company had adjusted earnings per share of 5 cents, ahead of the FactSet consensus for a loss of 1 cent. Revenue fell 35% to $ 5.356 billion from $ 8.269 billion, below the FactSet consensus of $ 5.373 billion. “It was probably the most difficult quarter in decades,” said Managing Director Olivier Le Peuch in a statement. Revenue fell 28% from the first quarter, “due to the unprecedented decline in business in North America and the decline in international business due to downward revisions to budgets. of customers accentuated by disruptions from COVID-19. That says a lot about an industry facing historic demand for oil and supply imbalances caused by the destruction of demand resulting from the global COVID-19 containment effort. North American sales were down 48% from the first quarter as customers reduced spending. International revenues were down 60% from the first quarter, with Latin America and Africa recording the worst declines due to COVID-19 restrictions and lower deep-water activity, he said. he declares. The company is reorganizing and combining its 17 product lines into four divisions, restructuring geographically around five key business areas and streamlining management, he said. It is cutting 21,000 jobs as part of the restructuring. Schlumberger plans to eliminate $ 1.5 billion in costs permanently. “Looking at the short-term macro view, demand for oil is slowly starting to normalize and is expected to improve as government measures support consumption,” the CEO said. “However, subsequent waves of potential COVID-19 resurgence pose a negative risk to this outlook. Stocks are down 2.5% before market launch and 52% year-to-date, while the S&P 500 SPX,
-0,48%
gained 0.2%.

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