Schlumberger Posts Record Loss in Q3 on Charges

US oilfield services giant Schlumberger has booked $12.7bn in writedowns in its results for the three months ending September 30, causing it to suffer its worst ever quarterly loss.

The charges included $9.9bn related to goodwill and intangible assets, the Houston-based company said on October 18, plus a further $1.58bn related to its pressure pumping business in North America and $114mn for severance.

Schlumberger expanded its pressure pumping business in 2017 by taking over the US operations of Weatherford International for $430mn. The business subsequently suffered as a result of a slowdown in hydraulic fracturing demand.

As a result of the charges, Schlumberger posted a net loss of $11.38bn, compared with a profit of $644mn a year earlier. Revenues inched upwards to $8.54bn in the three months, from $8.504bn, with weaker US performance countered by gains in Schlumberger’s international business.

“Sustained international activity drove overall growth despite mixed results in North America,” CEO Olivier Le Peuch said. “The North America business saw strong offshore sales with minimal growth on land due to slowing activity and further pricing weakness.”

Schlumberger’s operations in Europe, the Commonwealth of Independent States and Africa achieved the strongest sales, with revenues up 13% yr/yr.