Schlumberger To Cut 9,000 Jobs As Low Oil Prices Bite

[Nellore Pedda reddy]

Schlumberger Ltd., the world’s biggest oilfield-services company, said it would cut 9,000 jobs and take a $1.27-per-share charge in the fourth quarter as it prepares for an “uncertain environment” after the collapse in oil prices.

 

“In response to lower commodity pricing and anticipated lower exploration and production spending in 2015, Schlumberger decided to reduce its overall headcount to better align with anticipated activity levels for 2015,” the company said. “Schlumberger recorded a US$296-million charge associated with a headcount reduction of approximately 9,000.”

 

Net income dropped to US$302-million, or 23 cents a share, from $1.66 billion, or $1.26, a year earlier, Houston-and Paris- based Schlumberger said today in a statement on Businesswire. Excluding one-time items, Schlumberger earned $1.50 a share in the fourth quarter, beating the $1.46 average of 34 analysts’ estimates compiled by Bloomberg.

 

Energy companies, coping with a 42% decline in oil prices during the last three months of 2014, are expected to cut spending in the U.S. by as much as 35 percent this year, according to Cowen & Co. The number of onshore U.S. rigs could fall by as much as 750 this year, Wells Fargo & Co. said in a note yesterday.

 

“Clearly we’re seeing a drop-off in activity,” Stephen Gengaro, an analyst at Sterne Agee & Leach Inc. in New York, said in a phone interview before the release. “The first and second quarter is where you start to see the deterioration in the year-over-year comparisons.”

 

Schlumberger said the one-time costs for the quarter were the result of job cuts, changes in its seismic unit and devaluation of Venezuela’s currency.

 

Shares in oilfield-services companies, which help customers find and produce oil and natural gas, were the first to fall as crude prices declined. Service companies in the Standard & Poor’s Index dropped 20 percent in the quarter, more than the 18 percent decline for producers.

 

Global Spending
Exploration and production spending globally is expected to drop 17%  to $571-billion, Jim Crandell, an analyst at Cowen, wrote in a Jan. 7 research note. Schlumberger has the smallest exposure to North America compared to peers, generating a dollar of sales in the region for every US$3 globally.

 

With oil prices failing to stabilize, some producers are waiting to announce plans for 2015, making first-quarter earnings estimates for Schlumberger  “still a bit of a guess,” said Gengaro, who rates the company a buy and doesn’t own the shares.

 

Less than half of the 150 oil and gas companies it monitors have reported spending plans for the year, Norman MacDonald, a portfolio manager for Invesco Ltd., said in an interview. MacDonald, who manages the $990 million Invesco Energy Fund, said he’s never seen this many companies wait so long to announce their budgets.

 

The earnings statement was released after the close of regular trading in New York. Schlumberger, which has 34 buy and 10 hold recommendations from analysts, fell 5.2% last year. The company increased its quarterly dividend 25%.

[Spartan]

muzic started aa...

[donganaaK]

so it has begun ...

[Nellore Pedda reddy]

muzic started aa...

 

 

so it has begun ...

 

:5_2_108:

[aragorn]

muzic started aa...

 

canada lo already started :3D_Smiles_38:

[Nellore Pedda reddy]

canada lo already started :3D_Smiles_38:

 

Ikkada houston lo tadisipothandi  :3D_Smiles_38:

[Panasa_pandu]

Naaku oil field lo job vachindi man...26 joining...Pls dont post discouraging posts man sSa_j@il

[Nellore Pedda reddy]

Naaku oil field lo job vachindi man...26 joining...Pls dont post discouraging posts man sSa_j@il

 

oil field lo job ravadam endi  :3D_Smiles_38:

[Panasa_pandu]

oil field lo job ravadam endi  :3D_Smiles_38:

 

I mean Oil and Gas industry man...That too in Houston sSa_j@il

[Nellore Pedda reddy]

I mean Oil and Gas industry man...That too in Houston sSa_j@il

 

Welcome to Houston  :3D_Smiles_38:

[ramafdb]

[sigsegv]

Naaku oil field lo job vachindi man...26 joining...Pls dont post discouraging posts man sSa_j@il

ft aa conracting aa?

[mettastar]

Halliburton first quarter revenue $2billion thakkuva untundhi anta last year kante.. second quarter kuda chaala dull Untadi anta.. third quarter lo koncham pick ayye chance undhanta.. my friend works in accounting department monna forecasting lo telisindhi idi

[Panasa_pandu]

ft aa conracting aa?

 

aa bhagyam koodana.......Intern man sSa_j@il

[sigsegv]

aa bhagyam koodana.......Intern man sSa_j@il

nuvvu IT na .. petro na ?