Oilfield services giant Schlumberger (SLB, Financial) struggled to gain traction following the initial pandemic-related selloff of the first quarter. The company has been aggressive in cutting costs in response to the difficult operating environment; it has slashed about 25% of its workforce, reduced its dividend and sold off assets, including its North American hydraulic fracking business. We see Schlum-berger's financial strength and dominant market position as sources of resilience that may potentially enable it to respond positively if and when oil prices rebound.
From First Eagle Investment (Trades, Portfolio)'s Global Value Team's third-quarter 2020 commentary.
