Schlumberger Income Rises

Schlumberger Limited today reported third-quarter 2013 revenue of $11.61 billion versus $11.18 billion in the second quarter of 2013, and $10.50 billion in the third quarter of 2012.

Income from continuing operations attributable to Schlumberger, excluding charges and credits, was $1.71 billion—an increase of 12% sequentially and an increase of 24% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.29 versus $1.15 in the previous quarter, and $1.04 in the third quarter of 2012.

Schlumberger recorded net credits of $0.51 per share in the second quarter of 2013 and charges of $0.02 per share in the third quarter of 2012. Schlumberger did not record any charges or credits in the third quarter of 2013.

Oilfield Services revenue of $11.61 billion was up 4% sequentially and increased 11% year-on-year. Oilfield Services pretax operating income of $2.50 billion was up 10% sequentially and increased 20% year-on-year.

Schlumberger CEO Paal Kibsgaard commented: “Schlumberger third-quarter results reached new highs in both revenue and pretax operating income driven by consistent performance across all geographic Areas through strong execution based on integration, quality and efficiency. The international business grew further, with leading margins expanding in spite of some operational delays. Performance in North America was particularly strong despite continued pricing weakness in the land market. Operating margins exceeded 20% in all Areas and expanded in all Product Groups.

“Results were led by North America with a new high in overall revenue, supported by solid offshore activity and the seasonal rebound of activity in Western Canada. US land operations showed impressive resilience through improved efficiency, new technology penetration and market share gains in a highly competitive market with largely constant rig count. International results were led by the Middle East & Asia with growth in key markets in Saudi Arabia and Iraq, while offshore activity strengthened in Asia, and land drilling and stimulation activity improved in China. Europe/CIS/Africa saw strong summer activity in Russia and Central Asia and a seasonal increase in WesternGeco marine activity in the Area. Latin America activity was driven by Integrated Project Management and Schlumberger Production Management operations.

“The global economic outlook remains largely unchanged as relatively encouraging news among OECD countries and in China has offset lower growth expectations in some of the major emerging economies. In the US, the underlying trends are positive and the level of macroeconomic uncertainty was reduced in the near term following the temporary resolution of the fiscal debate. Demand for oil in 2013 has again been revised upward and current estimates for 2014 point to even stronger growth in demand. Overall, the market continues to support Brent prices at current levels while international natural gas prices remain steady. The upward E&P spend revision made in June continues to be confirmed by rig count improvement and increased customer activity. Within this landscape, we remain positive on the outlook for the industry.

“Last month I shared a view of the internal transformation initiatives that we are pursuing together with the potential they hold in terms of enhanced financial performance. We believe that the size of our operations and the breadth of our offering represent significant competitive advantages, and our entire organization is now focusing on executing these initiatives in parallel with maintaining just as clear a focus on our operational execution through integration, quality and efficiency.”

[mappress]

Press Release, October 18, 2013