Skip to main content

Market Overview

Schlumberger CEO Greets Investors With Some Brutal Honesty On Conference Call

Share:
Schlumberger CEO Greets Investors With Some Brutal Honesty On Conference Call

Schlumberger Limited. (NYSE: SLB) reported its fourth quarter results in which the world's largest oilfield services company earned $0.27 per share on revenue of $7.11 billion.

Wall Street analysts were expecting Schlumberger to earn $0.27 per share on $7.07 billion.

The company's earnings, however, took a back seat to comments Schlumberger CEO Paal Kibsgaard made during the post-earnings conference call.

Kibsgaard told investors during the call that he sees the current business environment as being "unsustainable for us." He added that he isn't expecting to see a dramatic, short-term recovery in the international market, as oil prices are expected to fluctuate near current levels for the next few months.

He also said the company continues to experience payment delays from some customers.

The executive further stated its offshore business is unsustainable and the current environment will either lead to recovering service pricing or a narrowing of service offerings.

Kibsgaard, however, did acknowledge that all of the energy-related markets have indeed reached bottom and aside from seasonal slowdowns in the first quarter, all markets are expected to improve moving forward.

Shares of Schlumberger were trading lower by nearly 2 percent after Friday's opening bell at $85.70.

 

Related Articles (SLB)

View Comments and Join the Discussion!

Posted-In: Oil oil prices Oil Services Paal KibsgaarEarnings News Commodities Markets Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com