Schlumberger reports plunging earnings

PARIS: French-US oil services group Schlumberger said on Friday that its net profits plunged by nearly 30 per cent in the first quarter due to decreased drilling and falling energy prices in the global economic slowdown.

Net earnings were 938.46 million dollars, down from 1.34 billion in the same period a year ago - a drop of 28 per cent year on year, it said in an earnings statement.

"The rate of decline in revenue at Oilfield Services accelerated considerably compared to the fourth quarter, largely due to the precipitous drop in the North American natural gas rig count," Schlumberger's chief executive Andrew Gould was quoted as saying in the statement.

"Outside North America, low activity in Russia and the fall of many local currencies against the US dollar remained the principal causes of weakness."

Gould said in March that the group was likely to cut up to 4,500 jobs.