Schlumberger posts Q2 profits of US$613 million
Oilfield services giant sees 57% profits slump compared to Q2 of 2008
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Schlumberger, the world’s largest oilfield services company, has announced second quarter profits for 2009 of US$613 million on revenues of $5.53 billion.
The French company said that the $613 million equated to an earnings-per-share of $0.51.The figure represents a 57% reduction on the same period in 2008 when Schlumberger announced profits of $1.42 billion, or $1.16 per-share.
Revenues were down from $6 billion in the first quarter of 2009, and $6.75 billion in the second quarter of 2008.
“We are aware that a number of projects are continuing to be postponed or cancelled,” Schlumberger chairman and CEO Andrew Gould said.
“We are also concerned that the higher finding and development costs of new supply, coupled with lower oil and gas prices and more restrictive credit markets are stifling investment flows.”
“This situation, if it persists, will lead to inadequate supply when demand growth returns. The shape of the economic recovery beyond 2009 and the consequent recovery in oil and gas demand remain the determining factors for future activity increases,” he added.
Schlumberger’s results reflect the rest of the hydrocarbon’s industry. Other major players in the oilfield services sector including Halliburton and Weatherford International have announced similar second quarter profit drops this year as the lack of demand for oil & gas coupled with a slowdown in investment hits the industry.