Schlumberger To Reduce More Than 21,000 Employees - Quick Facts

(RTTNews) - Schlumberger Limited (SLB) said, in response to market conditions, the company recorded $3.7 billion of pretax restructuring and asset impairment charges, including $1 billion of severance costs, as of the end of the quarter. The company noted that the severance is associated with reducing its workforce by more than 21,000 employees. The vast majority of this charge is expected to be paid during the second half of 2020. The company said the remaining portion of the charge largely relates to the non-cash impairment of certain assets.

Schlumberger CEO Olivier Le Peuch said: "Looking at the macro view in the near-term, oil demand is slowly starting to normalize and is expected to improve as government measures support consumption. However, subsequent waves of potential COVID-19 resurgence pose a negative risk to this outlook."

For the second quarter, excluding charges & credits, earnings per share was $0.05 compared to $0.35, prior year. On average, 27 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.01, for the quarter. Analysts' estimates typically exclude special items.

Second quarter revenue declined 35% year-on-year to $5.36 billion from $8.27 billion. Analysts expected revenue of $5.36 billion for the quarter.