Schlumberger says to incur cash costs of about $1.2 to $1.4 bln on restructuring, headcount reduction

Schlumberger ceo le peuch provides update at jp morgan 2020 energy, power & renewables conference.schlumberger - moving to four divisions from 17 product lines and and structuring geographic organization around five key basins of activity.schlumberger - in h2 fy, expect production curtailment, gradual demand resumption to hold supply, demand in relative balance while maintaining floor on oil price.schlumberger - will incur cash costs of about $1.2 to $1.4 billion as result of both restructuring, reducing variable headcount.schlumberger - payback period for cash costs will be less than one year.schlumberger - rationalization of asset base is ongoing and will result in additional non-cash charges.schlumberger - in n.america, conditions are set for a temporary, albeit modest, activity increase in duc completions, though from a very low base.schlumberger - risk of further decline persists in international markets due to continued disruption of rig operations due to pandemic, opec plus supply cuts.schlumberger - impact of reorganization, other actions will permanently remove over $1.5 billion of structural costs on annual basis.schlumberger nv - directionally, international activity is likely still looking for bottom during h2 2020.schlumberger - while co is confident that outcome of restructuring efforts will materialize in q2 results, greater impact will be realized 2h of year.
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