UPDATE 2-Schlumberger to condense 9000 jobs as oil prices plunge

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By Tanvi Mehta and Sneha Banerjee

Jan 15 (Reuters) – Schlumberger Ltd, a world’s
No.1 oilfield services provider, pronounced it will cut 9,000 jobs, or
about 7 percent of a workforce, as it focuses on controlling
costs amid plummeting oil prices.

The association pronounced it took charges amounting to $1.77 billion
in a fourth entertain including spoil charges associated to
its seismic business, Venezuela banking devaluation and job

Schlumberger had pronounced final month that it would take a $1
billion assign associated to jobs cuts and a writedown of some
seismic vessels.

“They did contend they would be slicing jobs, though a magnitude
of them is really a shocker,” Philip Van Deusen, an analyst
with Tigress Financial Partners LLC, told Reuters.

A slew of tellurian oil majors such as BP Plc and
ConocoPhillips have cut jobs due to a scarcely 60 percent
slump in oil prices over a past 6 months. Brent crude
sealed during $47.67 on Thursday.

“If oil prices stay during this level, nothing of these companies
would only be means to adjust with one turn of workforce
reductions,” Robin Shoemaker, researcher with KeyBanc Capital
Markets, told Reuters.

Schlumberger’s business – oil producers – have slashed
capital budgets for 2015 and reduced a series of rigs.

The Houston-based association pronounced collateral expenditure,
excluding multiclient and plan government investments, is
expected to be $3 billion for 2015. Capex for 2014 was $4

“In this capricious environment, we continue to concentration on what
we can control..” Chief Executive Paal Kibsgaard said.

Schlumberger, that provides drilling record and
equipment, reported a fourth-quarter distinction that kick Wall
Street estimates for a tenth true quarter.

Revenue rose 6 percent to $12.64 billion, especially helped by
an 18.5 percent burst in income from North America.

Net income attributable to a association fell to $302 million,
or 23 cents per share, in a fourth entertain finished Dec. 31, from
$1.66 billion, or $1.26 per share, a year earlier.

On an practiced basis, a association warranted $1.50 per share,
beating a normal researcher guess of $1.45 per share,
according Thomson Reuters I/B/E/S.

Shares of a association sealed during $76.63 on a New York Stock

(Editing by Sriraj Kalluvila)

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