In releasing its first quarter revenues of the year, Schlumberger reported a 9% drop from the fourth quarter of 2019 with worldwide revenue of $7.5 billion. It expects things to worsen and is preparing for company layoffs. When and where and if in Oklahoma wasn’t indicated.

The company said its international revenue of $5.1 billion was down 10% from the previous quarter but increased 2% from a year ago. Its North America revenue fell 75 to $2.3 billion and that includes operations in Oklahoma.

The loss per share was $5.32 as the effect of the coronavirus pandemic hit the company toward the end of the quarter, prompting CEO Olivier Le Peuch to comment, “The effect of this was amplified late in the quarter by a new battle for market share between the world’s largest oil producers. This double black swan event created simultaneous shocks in oil supply and demand resulting in the most challenging environment for the industry in many decades.”

So far, the company has not announced layoffs like some firms in Oklahoma announced in the past week. But they apparently are coming as Le Peuch indicated in releasing the quarterly report.

“To reinforce our cost control and cash discipline, we are reducing our structural and variable costs, and restructuring our organization to match activity where necessary, including furloughing personnel, cutting salaries, lowering headcount, and closing facilities,” he said.

Schlumberger leaders indicate they expect the firm’s global capex to drop about 20% in 2020 with the largest reduction occurring in North America where spending could take a 40% hit.

Schlumberger’s Board of Directors is following what other firms have done as members agreed to reductions in their cash compensation and the capital investment program has been cut 30%.

Source: Business Wire