The contract, valued at USD 143 million, includes subsea trees, an integrated boosting and manifold system, a unified control system, an integrated power-control umbilical, a virtual flow metering solution, and estimated services. This was primarily due to the activity decline in US land as rig count dropped more than 50% while COVID-19 disruptions caused drilling activities to be cancelled or suspended in several international GeoMarkets. Revenue also declined less in the North Sea and Continental Europe, following the winter slowdown and as activity resumed later in the quarter after COVID-19 lockdowns were relaxed. Production pretax operating margin of 2% contracted by 630 bps sequentially, posting a 17% decremental operating margin. One affected worker, who did not wish to be named, said a number of contracts had been cancelled in the wake of the Covid-19 outbreak. Schlumberger Ltd., the world’s largest oil-field services company, cut about 21,000 Relates to the carrying value of certain APS projects in Latin America. 6) What was the effective tax rate (ETR) for the second quarter of 2020 and what is the guidance on the ETR going forward? Through our decisive actions, we protected our liquidity and cash positions, and sustained resilient international margins while navigating the trough of this downcycle. This was due to the North America land activity decline and COVID-19 disruptions in several international GeoMarkets. Something went wrong - please try again later. Employee separations in connection with this action is expected to start April 22, 2020 and continue through June 2020. Deploying these solutions in the current challenging industry environment can help customers maintain business continuity and improve their teams' performance worldwide. North America and international revenues declined 17% and 20%, respectively. “This has probably been the most challenging quarter in past decades. As the pandemic lingers, we will remain cautious in our global operations. Up to 90 staff of OneSubsea, a … Production revenue of $1.6 billion, 75% of which came from the international markets, declined 40% sequentially. Schlumberger-Private Via US Mail and Email To: June 22, 2020 Ms. Kimberly Kolvig Rapid Response Statewide Coordinator Alaska Department of Labor and Workforce Development P.O. By techstaffer in Schlumberger on December 11, 2020 December 11, 2020. Baker Hughes follows OKC layoffs with more in Houston April 24, 2020 . Revenue in the Middle East, Russia, Europe, and Asia proved more resilient as these regions, when combined, declined 10% sequentially. 5) What is the difference between Schlumberger’s consolidated income (loss) before taxes and pretax segment operating income? 4) How did interest income and interest expense change during the second quarter of 2020? It is thought OneSubsea’s offshore division in Portlethen employs around 130 workers. We continue to be opportunistic in accessing the financial markets, systematically refinancing and spacing out future debt maturities, and taking proactive measures to enhance our liquidity position. Schlumberger, along with most other oil companies, is in the process of trying to cut costs to help deal with the economic downturn brought on by the Coronavirus. Schlumberger CEO Olivier Le Peuch commented, “Before addressing our results, I would like to pay tribute to our employees and contractors for their remarkable resilience in the face of the historic COVID-19 pandemic that confronts us all. A few examples of this included: This quarter’s contract awards reflect the diversity of our business models in different basins around the globe, including alignment with in-country value, offshore processing, and subsea integration. The technology is expected to enable faster, lower-cost wells through drilling automation and orchestration of the digital well plan generated by DrillPlan* coherent well construction planning solution. Schlumberger (SLB) is reportedly looking to augment the use of automation and digital technologies in its field activities. US Eastern Time. The approach will use a combination of automated, traditional domain workflows and workflows driven by machine learning and AI to rapidly provide insights into development strategies for optimizing production across the life cycle of the assets. GAIA Data Discovery and Marketplace Platform, ConcentraFlo Pipeline Chemistry Solutions and Service, ChemWatcher Integrated Chemical Management System, Process Live Data-Enriched Performance Service, ACTive Real-Time Downhole Coiled Tubing Services, CoilTOOLS CT Intervention Tools and Solutions, ProActive Drilling Asset Management Services, Schlumberger Announces Second-Quarter 2020 Results, Q2 2020 Earnings Release, with Financial Tables, Q2 2020 Earnings Conference Call Prepared Remarks, Q2 2020 Earnings Conference Call Transcript, (Stated in millions, except per share amounts), Diluted EPS (loss per share) - GAAP basis, Diluted EPS, excluding charges & credits*, Shares issued under employee stock purchase plan, Average shares outstanding, assuming dilution, Amortization of multiclient seismic data costs capitalized, Costs associated with exiting certain activities, Worldwide revenue of $5.4 billion decreased 28% sequentially, International revenue of $4.1 billion decreased 19% sequentially, North America revenue of $1.2 billion decreased 48% sequentially, GAAP loss per share, including charges and credits of $2.52 per share, was $2.47, EPS, excluding charges and credits, was $0.05, Cash flow from operations was $803 million and free cash flow was $465 million, Board approved quarterly cash dividend of $0.125 per share. 10) What are the components of depreciation and amortization expense for the second quarter of 2020 and the first quarter of 2020? Schlumberger is leading the industry in the development of Digital solutions to increase performance in drilling and reservoir characterization. Consolidated revenue in the Latin America area of $543 million decreased 42% sequentially, primarily due to a production interruption in our APS projects in Ecuador. Three out of our four business segments and more than half of our 13 international GeoMarkets either expanded or maintained their international margins on a sequential basis. Williams & Williams is conducting the auctions along with Lee & Associates Commercial Real Estate Services. SBM Offshore awarded Schlumberger five contracts for the provision of a comprehensive portfolio of processing technologies to be used on a floating production, storage, and offloading (FPSO) vessel. Houston-based Cameron International — a subsidiary of Schlumberger Inc. (NYSE: SLB) — plans to close two Texas facilities later in May, which will result in a round of layoffs. Some of the technologies include ACTive* real-time downhole coiled tubing services, OpenPath Reach* extended-contact stimulation service, and OpenPath Sequence* diversion stimulation service. The North America decline was driven by lower Surface Systems and Valves & Process Systems revenues while international activity decline was mainly due to lower Drilling Systems sales. “Interest and other income” for the second quarter of 2020 was $33 million. “Looking at the macro view in the near-term, oil demand is slowly starting to normalize and is expected to improve as government measures support consumption. Severance is associated with reducing Schlumberger’s workforce by more than 21,000 employees. Certain prior period amounts have been reclassified to conform to the current period presentation. The OneSubsea and Drilling Systems orders and backlog were as follows: 14) What are the components of the $3.7 billion of charges recorded during the second quarter of 2020? fast paced at times, long demanding days in poor conditions, management sucks, supervisors middle of the road, pay was fair and no problem getting time off. Notification by Cameron Drilling, based in Moore was made Friday with the Oklahoma Workforce Development … Prompt cost reduction measures through headcount rationalization, furloughs, and lower manufacturing costs contributed to the international margin expansion. Includes a $42 million increase to the allowance for the doubtful accounts. The parent well experienced no detrimental production impact following the infill well’s stimulation treatments, indicating no negative fracture interference. Premium content requires special account permissions. Q2 2020 Earnings Conference Call Prepared Remarks (172 KB PDF) Europe/CIS/Africa area consolidated revenue of $1.4 billion decreased 17% sequentially due to a significant drop in activity in the Sub-Sahara Africa and North Africa GeoMarkets from COVID-19 disruptions, project cancellations, and work stoppages. Kuwait Oil Company awarded Schlumberger a five-year contract with an optional one-year extension valued at USD 320 million for the provision of coiled tubing and stimulation services. Under the MOU, Honghua will manufacture and sell rigs that have plug-and-play capability with the DrillOps solution, which integrates planning and operations while automating well construction tasks in order for the rig to operate at peak performance throughout the execution of the drilling plan. This was mainly due to lower Wireline activity in North America land and the Eastern Middle East and Sub-Sahara Africa GeoMarkets. After 60 days, the infill well treated with BroadBand Shield technology, located closest to the parent well, achieved approximately 10% higher production performance compared to an adjacent infill well farther from the parent well. Service Technician (Former Employee) - Calgary, AB - 6 June 2020 overall good place to work. First oil is scheduled for delivery in late 2021. 7) How many shares of common stock were outstanding as of June 30, 2020 and how did this change from the end of the previous quarter? We are combining our 17 product lines into four divisions, structuring our geographic organization around five key basins of activity, and streamlining our management structure. “The conditions are set in the third quarter for a modest frac completion activity increase in North America, though from a very low base. Represents the write-down of inventory to its net realizable value. En 1940, à cause de la guerre e… The margin contraction was primarily due to reduced profitability in North America, impacting Surface Systems and Valves & Process Systems margins, while international margin expanded sequentially due to OneSubsea and Drilling Systems. Cons. Rocking around the subsea (Christmas) tree, Oil falls with virus mutation raising lockdown risks, North-east SNP MPs call for meeting with business secretary over sector deal, Balmoral weathering pandemic storm in its 40th anniversary year. Drilling & Measurements and M-I SWACO accounted for most of the margin decline and experienced the largest drop in activity due to their sizeable footprint in North America land. We regret that on top of the cost cutting measures already taken, we have to consider redundancies given the business outlook for the oil and gas.”. The technology developed by Schlumberger Drilling & Measurements eliminated fluid uncertainty in untapped fault blocks while mitigating operational risks. As a next step, ExxonMobil and Schlumberger have finalized an enabling agreement for the deployment of DrillOps* on-target well delivery solution in ExxonMobil’s unconventional operations. Testing Services revenue was also lower mainly in the Sub-Sahara Africa GeoMarket as a result of completed projects and delayed and cancelled activities due to COVID-19. In addition, sales in North America land of Surface Systems, Artificial Lift Solutions, and Valves & Process Systems decreased sequentially. Thank you for signing up to our newsletter. The pandemic hurt the entire economy, but it came down on the oil & gas industry especially hard. Drilling activity in Russia & Central Asia, however, was resilient as COVID-19 disruption was offset by seasonal pickup in Russia land activity in preparation for the summer drilling campaigns. It involved wellbores with up to 80° of inclination and large overbalance, resulting in approximately USD 2 million in operating cost savings. Simon Farrant – Vice President of Investor Relations, Schlumberger Limited 3) What was included in “Interest and other income” for the second quarter of 2020? Layoffs by Schlumberger are hitting Oklahoma. A week after Baker Hughes Co. announced the layoff of more than 200 workers at its Oklahoma City operations, the company said it would lay off more than 180 people in Houston where it is headquartered. We are permanently removing $1.5 billion of structural costs annually by reorganizing Schlumberger into a leaner and more responsive company that is better aligned with our customers’ workflows. En 1934, Schlumberger Well Surveying Corporation (désormais Schlumberger Wireline) est créée. Drilling revenue of $1.7 billion, 82% of which came from the international markets, decreased 24% sequentially. Up to 90 staff of OneSubsea, a subsea services and equipment subsidiary of oilfield services giant Schlumberger, are part of the consultation to reduce the company’s headcount in Portlethen. A cut in headcount of around 300 staff is anticipated across the firm’s global operations. The call is scheduled to begin at 8:30 a.m. “In response to market conditions, we recorded $3.7 billion of pretax restructuring and asset impairment charges, including $1 billion of severance costs, as of the end of the quarter. © Energy Voice 2020. 8) What was the weighted average number of shares outstanding during the second quarter of 2020 and first quarter of 2020? Can land you up in Fortbend County Jail was mainly due to our swift and actions. Charge is expected to remain in the face of such adversity, Schlumberger has demonstrated resilience in... To conform to the current challenging industry environment can help customers maintain business continuity and improve teams! Our strong free cash flow from operations for the second quarter of.... Costs, restructure, and deliver their data immediately to prospective buyers SpectraSphere * fluid mapping-while-drilling technology has add... 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