Charges cause of firm’s losses

The Press and Journal (Aberdeen and Aberdeenshire) - - BUSINESS -

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.

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