21617
Oilfield Servicers Reap Benefits From Downsizing
Energy

Oilfield Servicers Reap Benefits From Downsizing

The world’s two largest oilfield service providers shrugged off a yearlong crude market crash with better-than-expected quarterly results in North America, helped by aggressive cost cuts from downsizing.
Halliburton Co., the second-largest provider of services such as drilling and completion work to oil producers, earned 44 cents a share in the second quarter, excluding certain items, beating the 29-cent average estimate of analysts, according to a statement Monday. Schlumberger Ltd., the world’s No. 1, beat the 79-cent average estimate with results reported July 17, Bloomberg reported.
Schlumberger, which has cut about 20,000 workers globally during the downturn, announced last week an end to its layoffs. Halliburton added more layoffs in the second quarter, bringing its total reduction to nearly 14,000 since peak headcount last year, Emily Mir, a company spokeswoman, said in an email.
“They both beat on controlling costs,” said Rob Desai, an analyst at Edward Jones in St. Louis, who rates both companies a buy and does not own shares in either. “They’re one of the first to really have the workforce reductions.”
Halliburton, which generates nearly half of its sales in the US and Canada, saw its operating profit margin in North America tumble to 4.9%, while Schlumberger’s fell to 10%. Both were higher than analysts expected in a region that has been hit the worst compared to international markets.
North American customer spending is expected to fall by more than 35% this year, while international customers will cut more than 15% from their budgets, Schlumberger Chief Executive Officer Paal Kibsgaard said July 17 on a conference call.

 

Short URL : http://goo.gl/Vde7m7

You can also read ...

Aramco Trading currently trades 3.6 million barrels per day of crude and refined products.
Aramco Trading, the commercial arm of oil giant Saudi Aramco,...
US crude inventories rose by 1.1 million barrels in the week to April 20 to reach 429.1 million.
Oil prices on Wednesday fell back from more than three-year...
Iran Oil Exports to India Hit Record
India purchased about 700,000 barrels of crude oil from Iran...
Iran Discovers New Shale Deposits in Sea of Oman
Iran's Research Institute of Petroleum Industry has discovered...
Iran's current natural gas output stands at 230 billion cubic meters per annum.
The state-run National Iranian Gas Company is determined to...
Nationwide Euro-4 Diesel Distribution in June
The distribution of Euro-4 diesel will commence in June...
German Ambassador Klor-Berchtold (L) meets Energy Minster Reza Ardakanian in Tehran on April 24.
Germany is ready to develop energy ties with Iran by focusing...

Trending

Googleplus