Schlumberger said its profits nearly halved in the first quarter of the year as the company cuts costs amid the continued decline in oil price.
The oilfield services provider said its costs to do business in North America exceeded the revenue it earned there in the quarter.
It marks the first time it has had negative margins in the region since oil prices began to drop.
Chief executive Paal Kobsgaard said:”Our overall outlook for the oil markets remains unchanged, with the tightening of the supply-demand balance expected to continue during the rest of the year.”
The company has lowered its 2016 capital spending budget to $2billion from $2.4billion.
Its employee count has fallen to about 93,000, down 2,000 from December and 36,000 from its peak in November 2014.
Revenue fell 36 percent to $6.52 billion.
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