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April 22 (Reuters) - Schlumberger Ltd said it expected a “significant” fall in second-quarter revenue as it scales back operations in Venezuela due to payment problems, and a prolonged slump in oil prices continues to keep activity subdued.
Chief Executive Paal Kibsgaard warned of a “sequential percentage fall in revenue in Q2 similar to what we saw in Q1.”
The world’s No.1 oilfield services provider reported a 16 percent fall in first-quarter revenue from the prior quarter.
The forecast excludes revenue added by Cameron International Corp’s acquisition, which Schlumberger closed earlier this month, Kibsgaard said on a post-earnings call.
The company expects second-quarter revenue at Cameron to be flat from the first quarter.
Shares of Schlumberger, which reported a slightly higher-than-expected quarterly profit on Thursday, were up less than 1 percent at $80.96 in morning trade on the New York Stock Exchange.
A 60 percent fall in oil prices since mid-June has prompted oil producers to severely curtail spending as they struggle to cope with dwindling cash flows, weighing on demand for services provided by Schlumberger and others.
“Our industry is now in the deepest financial crisis on record, with profitability and cash flow at unsustainable levels for most oil and gas operators,” Kibsgaard said on the call.
More than 50 North American oil and gas producers have entered bankruptcy since early 2015, according to a Reuters review of regulatory filings and data, while others are bracing for the biggest cuts yet to their bank loans. (Reporting by Swetha Gopinath in Bengaluru; Editing by Anil D’Silva)