Schlumberger To Ax 11,000 Jobs Even As Oil Prices Start To Rise

Schlumberger said it will lay off another 11,000 employees amid continued weak oil prices, saying that a recovery in U.S. land drilling "will be pushed out in time.

In January, the oilfield services giant said it had slashed 9,000 jobs late last year, a 7% cut in head count. On Thursday, it said the new cuts represent a 15% decline from Q3's peak.

"We also anticipate that a recovery in activity will fall well short of reaching previous levels, hence extending the period of pricing weakness," Schlumberger (SLB) CEO Paal Kibsgaard said in a statement.

Shares rallied 2.2% in extended trading to 94 after closing down 0.1% at 91.89.

First-quarter earnings per share fell 12% to $1.06, beating estimates of 89 cents a share. Revenue slid 9.3% to $10.25 billion, missing consensus for $10.42 billion.

The revenue drop, was driven by "the severe decline in North American land activity and associated pricing pressure," the company said.

The company now expects $2.5 billion in capital spending this year, down from its forecast for $3 billion in January, and $4 billion last year.

The new job and spending cuts come as oil futures rose Thursday to their highest levels of the year. Crude prices have risen 12% in a six-session winning streak amid signs of declining U.S. production.

Shares of rival Halliburton (HAL), which is slated to report earnings next week, rose 1% late Thursday after closing down 0.9%. Halliburton has a deal to buy Baker Hughes (BHI), with both services firms cutting staff.