Schlumberger has reported a first quarter net loss of -$7.376 billion on revenues of $7.45 billion compared with a net profit of $333 million on revenues of $8.3 billion in Q4 2019 and a net profit of $421 million on revenues of $7.88 billion in Q1...
Schlumberger has reported a first quarter net loss of -$7.376 billion on revenues of $7.45 billion compared with a net profit of $333 million on revenues of $8.3 billion in Q4 2019 and a net profit of $421 million on revenues of $7.88 billion in Q1 2019.
‘The first quarter results include an $8.5 billion pretax charge primarily relating to the impairment of goodwill, intangible assets, and other long-lived assets,’ said Schlumberger in a statement. ‘This charge, which is almost entirely non-cash, was driven by the significant decline in market valuations during March 2020.’
International revenue of $5.1 billion decreased 10% sequentially, but increased 2% year-on-year. North America revenue of $2.3 billion decreased 7% sequentially and 17% year-on-year. Cash flow from operations was $784 million and free cash flow was $179 million.
Schlumberger CEO Olivier Le Peuch said: ‘First-quarter revenue of $7.5 billion declined 9% sequentially and 5% year-on-year as the unprecedented global health and economic crisis sparked by the Covid-19 pandemic increasingly impacted industry activity during the quarter.
‘The sequential international revenue decline was led by lower winter activity in the Europe/CIS/Africa area, particularly in the Russia & Central Asia and the UK and Continental Europe GeoMarkets. Latin America area revenue also decreased, mainly due to reduced WesternGeco multi-client seismic licensing sales. Middle East & Asia area revenue declined on lower product sales following strong year-end sales and a seasonal decline in activity.’
Meanwhile, Halliburton has reported a first quarter loss of -$1 billion, which compares to a Q1 2019 net profit of $152 million. Adjusted net income for the first quarter of 2020, excluding impairments and other charges and a loss on the early extinguishment of debt, was $270 million. Halliburton’s total revenue in the first quarter of 2020 was $5 billion, a 12% decrease from revenue of $5.7 billion in the first quarter of 2019.
Finally, Baker Hughes has approved a plan that will result in restructuring, impairment, and other charges of approx. $1.8 billion, of which approx. $1.5 billion will be recorded in the first quarter of 2020. Future cash expenditures associated with these charges are estimated to be approx. $0.5 billion with an expected payback within one year.
The company has approved a plan to reduce 2020 net capital expenditures by more than 20% versus 2019 net capital expenditures. The company expects to record a non-cash goodwill impairment charge of approx. $15 billion in the first quarter of 2020.
