The Chief executive of Schlumberger, Paal Kibsgaard says the recent little improvement in oil price will not stop the downward trend going forward.

Kibsgaard said:
During the first quarter of 2016, the decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis. Budgeted E&P spend fell again and substantially affected our operating results. This environment is expected to continue deteriorating over the coming quarter given the magnitude and erratic nature of the disruptions in activity.

Kibsgaard further said recent surveys on exploration and production spending showed sharper declines than previously expected.

“In navigating this landscape, we remain focused on balancing market share against profitability while also working to best preserve the core capabilities of the company for the long term,” he said. “We will continue to tailor costs and resources to activity, while remaining cautious in adding back capacity given the unpredictable nature of the current market.”

The world’s largest oilfield-services company posted adjusted earnings per share (EPS) of $0.40, with a 63% year-on-year drop in net income, excluding charges and credits to $501 million.

Revenues fell 36% compared to last year to $6.52 billion.