Cramer: More trouble ahead for oilfield companies

Cramer's Mad Dash: SLB
Cramer's Mad Dash: SLB

CNBC's Jim Cramer said Friday Schlumberger latest earnings report signals more pain for oil and gas services companies in the near future.

"Schlumberger basically just lowered the boom, saying, 'However, for oilfield services, the market outlook for the coming quarters looks increasingly challenging.' In other words, the worse is not over," Cramer said on "Squawk on the Street."

Cramer also said the company expects oilfield activity to be further reduced.

A man walks past the Schlumberger Ltd. booth at the DUG Eagle Ford Conference & Exhibition in San Antonio, Texas. (File Photo).
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The oilfield services company reported earnings per share of 78 cents, beating analysts' expectations by 1 cent, but posted less-than-expected revenues of $8.47 billion.

The slowing in drilling activity will eventually raise prices, Cramer said.

The company's stock was down more than 3 percent Friday morning.

DISCLOSURE: Cramer's trust did not own Schlumberger stock when this article was published.