Schlumberger Expects Russia Sanctions To Hurt Earnings

Hess To Form MLP For North Dakota Oil, Gas Transport Assets
Schlumberger expects US and EU sanctions on Russia to hurt earnings during the third quarter.


Aug 12 (Reuters) - Schlumberger Ltd, the world's No.1 oilfield services provider, became the first major U.S. company to say that its quarterly earnings would be hurt by U.S. and EU sanctions against Russia.

The company's warning comes after BP Plc said last month the sanctions could hurt its business. BP is the biggest foreign investor in Russia with a near-20 percent stake in Rosneft, Russia's largest oil producer.

The United States has put sanctions on Rosneft and Novatek , Russia's second-largest gas producer, over Russia's support for rebels in Ukraine.

Schlumberger, which drills with Rosneft on the island of Sakhalin, said on Tuesday that the sanctions would hurt its third-quarter profit by as much as 3 cents per share.

Analysts on average estimate earnings of $1.51 per share in the quarter ending September, according to Thomson Reuters I/B/E/S.

Schlumberger generates about 4 to 5 percent of its revenue from Russia, amounting to about $2.2 billion in annual revenue, according to Simmons & Co.

Schlumberger said the sanctions were "restricting the engagement of people and equipment", but added that it was confident that it could support its clients in Russia without "material disruption".

Schlumberger said in July that there was no "real impact" on its business in Russia.


View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Columbia, SC
Project Manager
Expertise: Engineering Manager
Location: Atlanta, GA
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Raleigh, NC
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours