Jim Cramer Sees More Problems Ahead For Oilfield Companies, Cites Schlumberger's Q3 Report - Schlumberger (NYSE:SLB)

Industry giant Schlumberger Limited. SLB reported a higher than expected earnings for the third quarter while revenue fell short of expectations.
The stock is now lower by nearly 20 percent over the past 52 week.
CNBC's Jim Cramer said that the company's earnings report signals "more point" for oil and gas services companies.

Shares of Schlumberger lost nearly five percent Friday morning and the stock is now lower by nearly 20 percent year to date. The oil and gas exploration and production giant, along with the entire sector, is likely to see further "pain" in the near future, at least

according to CNBC's Jim Cramer. Commenting on CNBC's "Squawk on the Street" morning segment, Cramer said that the market outlook for the coming quarters "looks increasing challenging." He added that "the worse is not over" even for "the single best company in oil and gas." Cramer further pointed out that the company expects its oilfield activity to be further reduced. "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," Schlumberger Chairman and CEO Paal Kibsgaar said in a

company press release.

"We remain focused on managing our cost base, and are further accelerating our transformation program to help offset the impact of lower service pricing. As we navigate the current commercial landscape, we still look to strike a balance between market share and operating margins, while continuing to seek opportunities to extend our portfolio through targeted M&A, such as our transaction with Cameron, where integration planning is already well advanced." Schlumberger didn't issue guidance in its third quarter release but the company's CEO did say during its post earnings conference call with investors that it expects its first quarter 2016 to be weaker than the fourth quarter 2015.

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