Schlumberger had reported over $0.65 billion loss due to currency devaluation in Venezuela. Another $1 billion credit line was offered to national oil company. Such a poor financial management and the person making these stupid decisions is a sucker and is getting promoted with fat bonus.
Venezuela currency devaluation loss
Although the functional currency of Schlumberger’s operations in Venezuela is the US dollar, a portion of the transactions are denominated in local currency. Schlumberger has historically applied the official exchange rate of 6.3 Venezuelan Bolivares fuertes per US dollar to remeasure local currency transactions and balances into US dollars. Effective December 31, 2014, Schlumberger concluded that it was appropriate to apply the SICAD II exchange rate of 50 Venezuelan Bolivares fuertes per US dollar as it believes that this rate best represents the economics of Schlumberger’s business activity in Venezuela. As a result, Schlumberger recorded a $472 million devaluation charge