Schlumberger to Exit Land, Marine Seismic Acquisition Business
January 19 2018 - 9:17AM
Dow Jones News
By Imani Moise
Oil-services giant Schlumberger Ltd. (SLB) said it will exit the
marine and land seismic acquisition market and transform its
WesternGeco product line into an asset-light business over concerns
about future returns.
Seismic acquisition involves generating and recording data about
the composition of rocks or fluid content deep underground.
Schlumberger recorded a $198 million impairment charge on its
seismic data operation in the third quarter.
WesternGeco is a part of the company's Reservoir
Characterization Group, where fourth-quarter revenue declined 8%
sequentially and 2% from the prior year.
"The only product line that does not meet our return
expectations going forward, even factoring in an eventual market
recovery, is our seismic acquisition business," Chief Executive
Paal Kibsgaard said.
Shares fell 2.2% to $74.68 during premarket trading. The stock
is down 12% over the past 12 months.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
January 19, 2018 09:02 ET (14:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Schlumberger (NYSE:SLB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Schlumberger (NYSE:SLB)
Historical Stock Chart
From Sep 2023 to Sep 2024