Schlumberger (NYSE:SLB) fell in morning trades after the world's largest oilfield services provider reported profit nearly halved and revenue fell 33% in the latest quarter.
The Houston, Texas-based company also said it would eliminate more jobs and restructure its manufacturing and distribution network as it now expects a recovery in demand to be pushed to 2017.
Shares dropped 4% to $73.14 at 10:47 a.m. in New York after touching $72.86, the lowest intraday price since October 6.
Net income decreased to $989mln, or $0.78 per share, in the July-to-September quarter, from $1.95bn, or $1.49 per diluted share, in the year-earlier period.
Revenue fell 33% to $8.47bn, including a 47% drop in North America and an about 27% decline outside.
Analysts were expecting a profit of $0.77 per share, according to Capital IQ estimates.
"The likely timing gap between the oil price recovery and the subsequent increase in oilfield services activity in combination with a more conservative spending outlook from our customers is causing us to now take further action," Chief Executive Officer Paal Kibsgaard said on a conference call.
The company said it would take a charge related to the restructuring in the fourth quarter.
Kibsgaard said the first quarter of 2016 would be weaker than the fourth quarter this year as customers tighten purse strings further.
Schlumberger has already cut 20,000 jobs this year and scaled back spending in response to weak crude prices.
Prices for West Texas Intermediate, the U.S. benchmark crude, rose on Friday 0.9% to $46.78 a barrel at 10:02 a.m. in New York.