By Michael Dabaie

 

Schlumberger Ltd. said it is cutting capital spending by up to 30% from 2019 levels amid the Covid-19 pandemic.

Shares were up 9% to $13.96 in early trading.

The company, which provides technology for reservoir characterization, drilling, production, and processing to the oil and gas industry, said the magnitude of the reduction depends on changes to customer plans.

The company said it is implementing a "downturn playbook" with strict cost control and cash discipline.

Schlumberger said will accelerate North America land operations restructuring and personnel and compensation reductions.

The company said its second-quarter outlook for North America land operations is for a rapid reduction in rig counts and completions activity. Rig count is projected to potentially reach 2016 trough levels, Schlumberger said.

Internationally, the company said that it expects that in the second quarter the escalating Covid-19 situation will impact field crews and some operations. The company said it is planning for reduced activity due to customer budget cuts.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

March 24, 2020 10:26 ET (14:26 GMT)

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