Oilfield services provider Schlumberger Ltd. (SLB), Thursday announced it will cut another 11,000 jobs as the U.S. energy sector continues to worsen due to plunging crude prices. The company also reported a sharp drop in profit for the first quarter, as revenues declined amidst the ongoing oversupply crisis. Nevertheless, earnings for the quarter came in ahead of estimates, but revenues fell short of expectations.
Schlumberger said it will lay off another 11,000 jobs, leading to a total reduction of about 15 percent compared to the peak of the third quarter of 2014. The company had announced job cuts off 9,000 employees early this year.
Commenting on the lay offs, CEO Paal Kibsgaard said, "In spite of the detailed preparations we made in the fourth quarter, the abruptness of the fall in activity, particularly in North America, required us to take additional actions during the quarter."
Houston, Texas-based Schlumberger's first-quarter profit dropped to $975 million or $0.76 per share from $1.53 billion or $1.21 per share last year.
Results for the quarter included restructuring and other charges of $439 million. Excluding items, adjusted earnings for the quarter were $1.06 per share. On average, 35 analysts polled by Thomson Reuters estimated earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the first quarter dropped 9 percent to $10.25 billion from $11.24 billion a year ago. Twenty-seven analysts had a consensus revenue estimate of $10.46 billion for the quarter.
Kibsgaard said revenues were largely hurt by the severe decline in North American land activity and associated pricing pressure. International operations were impacted by reduced customer spend in addition to seasonal effects in the Northern Hemisphere and the fall in value of the Russian ruble and the Venezuelan bolivar, Kibsgaard added.
SLB closed Thursday's trading at $91.89, down $0.11 or 0.12%, on the NYSE. The stock, however, gained $2.36 or 2.57% in the after-hours trade.
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