Schlumberger Reports Loss of $2.18 Billion

Schlumberger Ltd., a leading leading oil field services company, reported a $2.18-billion fourth-quarter loss Thursday, one of the biggest corporate losses ever.

A big loss had been expected. Schlumberger had announced it would take several large one-time charges against earnings to reflect the fall in value of its assets resulting from the worldwide slump in drilling and the costs related to the sale of its semiconductor subsidiary.

Schlumberger’s fourth-quarter loss compared to a 1985 fourth-quarter loss of $372.67 million, which also was reduced by a one-time charge against earnings. Revenue totaled $1.09 billion in the lastest quarter, down from $1.55 billion a year earlier.

For all of 1986, Schlumberger said it lost $2.02 billion, compared to a net profit of $351.03 million in 1985. Revenue fell to $4.94 billion from $6.02 billion.

Schlumberger is based in New York, but is incorporated in the Netherlands Antilles.

Schlumberger Chairman Euan Baird said the collapse of oil field activity strongly affected the company’s 1986 performance.

“The steep decline in the number of drilling rigs, the disappearance of most oil field exploration--a primary market for Schlumberger--and the sharp drop of oil field service prices due to the excess capacity prevailing in this market, took their toll,” he said.