SCHLUMBERGER: The oil recovery ‘appears to be delayed’

Schlumberger just announced third-quarter results with a bearish outlook for the energy sector.

The world’s largest oilfield services provider reported third-quarter adjusted earnings per share of $US0.78 on revenues of $US8.47 billion.

CEO Paal Kibsgaard said in the statement: “In light of conservative customer budgets for next year, we are therefore entering another period during which we will continually adjust resources in line with activity, as the recovery now appears to be delayed.”

He continued, “As we enter the last quarter of the year, the oil market is still weighed down by fears of reduced growth in Chinese demand and the expectations regarding the timing and magnitude of additional Iranian supply. However, the fundamental balance of supply and demand continues to tighten, driven by both solid global macroeconomic growth and by weakening supply as the dramatic cuts in E&P investments are starting to take effect. We expect this trend to continue as the oil market further recognises the magnitude of the industry’s annual production replacement challenge.”

Analysts had expected adjusted earnings per share of $US0.766 on revenues of $US8.5 billion, according to Bloomberg.

The company has missed projections for revenues in four out of the past six quarters.

Earlier this year, Schlumberger cut as many as 9,000 jobs as oil prices tumbled and companies trimmed costs.

The company’s stock has fallen 15% over the past year.

Earlier on Thursday, Schlumberger announced a quarterly dividend of $US0.50 per share of outstanding common stock.

More to come …

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