Schlumberger Ltd.'s (SLB) first quarter earnings fell 30% amid plummeting drilling activity, exceeding analysts' pessimistic expectations of a bigger decline amid a sharp drop in drilling activity for oil and gas.
Chief Executive Andrew Gould, however, said Friday in a conference call that Schlumberger would have difficulty replicating its first quarter performance amid lower prices for services and uncertainty in U.S. natural gas drilling.
Gould said Schlumberger's customers are seeking and obtaining lower prices for services. He said the company's first quarter performance would be "extremely difficult" to repeat as those renegotiated prices take hold.
"A lot of price concessions that we have given will flow though in subsequent quarters," Gould said.
Producers have cut back on drilling as low oil and gas prices have left many projects unprofitable and left less cash for those that could make money. Earlier this month, the number of drilling rigs in the U.S. was off by more than half from September to 975, according to Baker Hughes Inc. (BHI), the first drop below 1,000 since 2003....Complete Story
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