The pandemic is forcing clients of the world’s largest oil services company to abandon drilling operations

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“Schlumberger”, the world’s largest oilfield services company, suffered a third consecutive quarterly loss yesterday, as a continuous decline in oil prices this year due to the Covid-19 pandemic forces its major customers in the energy sector to abandon drilling operations.
The company started announcements of business results from the severely affected US oil field service provision at a time when new general isolation measures are imposed in some parts of the world, due to a new rise in injuries that threatens a recovery in demand for crude.
According to Reuters, North America recorded a much worse performance than the rest of the global services markets, as Schlumberger’s revenues from the region fell to $ 1.16 billion from $ 2.85 billion a year ago, and total revenues tumbled 38 percent, to $ 5.26 billion.
The company recorded $ 310 million in impairment provisions in the third quarter, in addition to the more than $ 12 billion the company recorded in the previous two quarters.
Schlumberger announced a net loss of $ 82 million, or the equivalent of six cents a share, for the third quarter ended September 30. Excluding provisions and credit, the company earned 16 cents a share in the quarter backed by deep cost cuts.
And “Schlumberger” is the largest company in the world working in the field of oilfield services, with activity in about 85 countries and more than one hundred thousand people from 140 nationalities work in it.
American oil companies incurred record losses as a result of the continued decline in demand and the consequent price fever, at a time when expectations of a prolonged recovery period are increasing with the continuing Corona crisis.
And ExxonMobil and Chevron recently announced huge losses in the second quarter of this year, while weak economic prospects due to the new Corona virus will force the oil industry to further reduce expenditures.
Neil Chapman, vice president of “ExxonMobil”, confirmed in previous statements that he had never seen market demand decline so much and so quickly. “The improvement in the price of jet fuel will likely be much slower than the recovery in demand for gasoline, which has begun to improve, due to the reduction in air travel,” he said.
ExxonMobil revealed losses of $ 1.1 billion in the second quarter, the largest since the incorporation of ExxonMobil in 1999, while Chevron incurred losses of $ 8.3 billion during the same period after it reduced the value of assets in accordance with expectations that commodity prices will remain low. For a longer period.
These figures included a devaluation of assets in Venezuela, where Mike Wirth, chief executive of Chevron, warned that the weak economic conditions may negatively affect the group’s results during the third quarter due to the significant decline in demand for petroleum products.





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