Oilfield services firm Schlumberger reports 30% drop in revenue in Q1
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Schlumberger reports 30% drop in revenue in Q1

26 Apr 2021 (Last Updated April 26th, 2021 10:38)

Oilfield services firm Schlumberger has posted a 30% year-on-year drop and 6% sequential drop in global revenue in the first quarter of 2021.

Schlumberger reports 30% drop in revenue in Q1
The Schlumberger complex, located in Sugar Land, Texas, US. Credit: WhisperToMe on Wikimedia.

Oilfield services firm Schlumberger has posted a 30% year-on-year drop and 6% sequential drop in global revenue in the first quarter of 2021.

The company’s total revenue amounted to $5.22bn in the first three months of the year, dropping from $7.46bn recorded in Q1 2020.

Notably, Schlumberger divested certain businesses in North America. The global first-quarter 2021 revenue was essentially flat sequentially and declined 23% on a year-on-year basis when the impact of the divestitures are excluded.

In North America, the company’s revenue was $972m, a 55% fall from the corresponding quarter last year.

The Well Construction division posted a revenue of $1.94bn, while the Production Systems division contributed $1.59bn. The revenues of the Digital and Integration division and Reservoir Performance division are $773m and $1bn, respectively.

The company’s net income in the quarter was $299m. Last year, Schlumberger was hit by a loss of $7.38bn in the first quarter after it booked $8.5bn in goodwill impairments.

Schlumberger CEO Olivier Le Peuch said: “We started the year with conviction in our strategic direction and our resulting outlook for 2021. The combination of the promising first-quarter results and an increasingly constructive macroeconomic view are strengthening this conviction.

“With recovery sentiment improving and the execution of our returns-focused strategy progressing well, I am extremely proud of the women and men of Schlumberger for delivering yet another solid quarter.”

Le Peuch expects that oil demand will recover to 2019’s level by or before the end of next year, Reuters quoted him as saying.

Recently, energy services firm Baker Hughes also reported its quarterly results.