SCHLUMBERGER: The oil industry will continue to deteriorate

Schlumberger just reported its first-quarter earnings.

The world’s largest oilfield services company posted adjusted earnings per share (EPS) of $0.40, and revenues of $6.5 billion.

Analyst expectations were for adjusted EPS of $0.39 on revenues totaling $6.51 billion.

CEO Paal Kibsgaard said in the release,

During the first quarter of 2016, the decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis. Budgeted E&P spend fell again and substantially affected our operating results. This environment is expected to continue deteriorating over the coming quarter given the magnitude and erratic nature of the disruptions in activity.

Two weeks ago, Schlumberger reaffirmed its expectation for quarterly revenues and said it would reduce operations in Venezuela, after the country’s national oil company failed to pay up.

Venezuela’s economy has been trounced by the slide in oil prices, as have Schlumberger ‘s profits.

Schlumberger shares had jumped 15% year-to-date through Thursday’s market close, but were down 12% over the past year.

Refresh this page for updates.

NOW WATCH: These striking images show just how overcrowded China’s population really is