Charges cause of firm’s losses
Impairment charges led Schlumberger to a loss of £9.3 billion before tax in its third-quarter results, with most of the £9.8bn charges due to some business units being overvalued, the company said.
Schlumberger took a £6.8bn goodwill impairment for assets from its 2010 acquisition of Smith International and its purchase of Cameron International Corporation in 2016.
The firm said the charges related to “the impairment of goodwill, intangible assets and fixed assets.”
It also recorded
“Charges related to the impairment of goodwill”
charges relating its businesses in North America, including its pressure pumping unit, along with impairments linked to “ongoing economic challenges” in Argentina.
The third-quarter loss compares to a £610.7 million profit in the same period last year.
Revenues were £6.62bn, up slightly on £6.59bn in Q3 2018.
The Europe, Central Independent States and Africa business recorded revenue of £1.5bn, which Schlumberger said was driven by “peak summer activity campaigns in the Russia and Central Asia GeoMarket and the North Sea”.
Growth in the North Sea was mainly higher from well services work and stronger exploration in Norway.