Schlumberger suffered a huge loss of 3.4 billion US dollars in the second quarter, and all three of the worlds major oil services lost money

category:Finance
 Schlumberger suffered a huge loss of 3.4 billion US dollars in the second quarter, and all three of the worlds major oil services lost money


In the short term, oil demand is slowly beginning to normalize and oil demand is expected to improve as the government takes measures to support consumption, Olivier Le peuch said He also pointed out that Schlumbergers goal for the next two to three quarters is to achieve a significant profit margin recovery and strong free cash flow during the transition period of 2021.

But will the second half of the year really be ok?

The average number of drilling rigs in the United States fell by 50% month on month in the quarter, while the number of international rigs fell by 22%. The absolute number of drilling rigs in the world has dropped to the lowest level in recent history. Rystad energy, an industry consulting firm, said that the number of drilling rigs in the world is expected to decrease by nearly a quarter this year and will not fully recover in the next few years.

In the upstream, several US shale oil companies have collapsed, such as Chesapeake filed for bankruptcy protection last month; other oil and gas giants, such as shell and BP, have also made asset write downs. ExxonMobil warned in a document submitted to the US Securities and Exchange Commission that the sharp drop in oil prices and weak refining profit margins have hit the upstream and downstream of the company Business, the company may face a second consecutive loss in the second quarter.

As a result, with upstream unable to create demand, the three major oil service giants plan to restore profit margins in the second half of the year still focus on spending cuts. Oilfield service companies like Schlumberger cant control the activities of their customers, but they can Cost. Lorenzo Simonelli, chairman and chief executive officer of Baker Hughes, said Baker Hughes would achieve $700 million in cost savings by the end of the year and would continue to restructure its business. Schlumberger wants to cut costs by $1.5 billion and says it has achieved 40% of that target in the second quarter, and more cuts are in the works. Source: Wang Xiaowu, editor in charge of Finance and Economics_ NF

As a result, with upstream unable to create demand, the three major oil service giants plan to restore profit margins in the second half of the year still focus on spending cuts. Oilfield service companies like Schlumberger cant control the activities of their customers, but they can Cost.

Lorenzo Simonelli, chairman and chief executive officer of Baker Hughes, said Baker Hughes would achieve $700 million in cost savings by the end of the year and would continue to restructure its business. Schlumberger wants to cut costs by $1.5 billion and says it has achieved 40% of that target in the second quarter, and more cuts are in the works.