Schlumberger Cutting Capital Spending Amid Covid-19
March 24 2020 - 10:41AM
Dow Jones News
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)
Copyright (c) 2020 Dow Jones & Company, Inc.
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