Schlumberger CEO Paal Kibsgaard said Friday that the oil and gas downturn may have hit “the bottom of the cycle” after his company booked a $2.16 billion net loss in the second quarter.
The Houston-based services firm reported a second quarter revenue of $7.16 billion, up 10 percent from the first quarter but a 20 percent year-over-year decline.
Pretax operating income fell 56 percent year-over-year to $747 million and a net loss of $2.16 billion, down from a year ago net income of about $1.12 billion.
Net income, excluding charges and credits, stood at $316 million in the second quarter, a 72 percent decline compared to the same period last year.
Diluted earnings per share on a GAAP basis sunk to a loss of $1.56 per share in the second quarter compared to an income of $0.40 per share in the first quarter.
Diluted earnings per share, excluding charges and credits, fell to $0.23 per share, down 43 percent sequentially and a 74 percent year-over-year decline.
North America second quarter revenue climbed 19 percent sequentially to $1.73 billion while Latin America revenue fell to about $1 billion in the second quarter, a 21 percent decline from the first quarter.
Revenue for Europe/CIS/Africa jumped 15 percent sequentially to $1.94 billion.
Middle East & Asia revenue jumped 20 percent compared to the first quarter to $2.4 billion.
The Reservoir Characterization Group booked a pretax operating income of $266 million, down 59 percent year-over-year, as revenue dipped 37 percent year-over-year to $1.59 billion.
The Drilling Group reported $171 million in operating income, down 75 percent year-over-year, on revenues of $2.03 billion, a 41 percent year-over-year decline.
The Production Group saw pretax operating income fall 77 percent year-over-year to $90 million as revenue dipped 31 percent year-over-year to $2.09 billion.
Cameron Group revenue stood at $1.53 billion for the second quarter with a pretax operating income of $243 million.
Schlumberger also recorded a $646 million pretax charge during the second quarter associated with headcount reductions.
“In the second quarter market conditions worsened further in most parts of our global operations, but in spite of the continuing headwinds we now appear to have reached the bottom of the cycle,” Kibsgaard said.