Schlumberger Net Profit Up

Schlumberger Limited, the world’s largest oilfield services provider, today reported third-quarter 2012 revenue of $10.61 billion versus $10.45 billion in the second quarter of 2012, and $9.55 billion in the third quarter of 2011.

Income from continuing operations attributable to Schlumberger, excluding charges and credits, was $1.44 billion—an increase of 3% sequentially and 10% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.08 versus $1.05 in the previous quarter, and $0.96 in the third quarter of 2011.

Schlumberger recorded charges of $0.02 per share in each of the third and second quarters of 2012 and the third quarter of 2011.

Oilfield Services revenue of $10.61 billion increased 2% sequentially and 11% year-on-year. Oilfield Services pretax operating income of $2.14 billion increased 2% sequentially and 11% year-on-year.

Schlumberger CEO Paal Kibsgaard commented, “Our third-quarter results reflected steady international growth although performance in regional markets varied through activity mix and changes to project schedules. Key markets, both on land and offshore, continued to drive performance as international demand for reservoir characterization and drilling services more than offset weakness in the North America pressure pumping market.

Both Middle East & Asia and Europe/CIS/Africa Areas delivered strong results, while Latin America revenue was flat with the previous quarter due to operational delays, project mobilizations and changes in activity mix. In North America, a slow seasonal recovery in Canada, falling US land rig count, continued oversupply of hydraulic fracturing capacity, and the effects of Hurricane Isaac all impacted performance.

International pricing continued a steady upwards trend during the quarter, driven by higher sales of new technology and strong operational performance. Service capacity remained tight for Seismic, Wireline and Drilling & Measurements services, and we also saw signs of capacity tightening in our Well Testing business. Schlumberger Production Management continued to ramp-up operations on the Shushufindi project in Ecuador and the Carrizo field in Mexico, and we started mobilizing for the Panuco project, also in Mexico.

Among new Schlumberger technologies, HiWAY stimulation activity continued to grow, the first commercial IsoMetrix marine seismic acquisition was completed and we introduced several new and unique Wireline services during the quarter.

Against these results, there continues to be uncertainty surrounding the outlook for the global economy. Central bank interventions in the US and in Europe, together with signs of a managed slowdown in the Chinese economy, left estimates for future world GDP growth largely unchanged. At the same time, the balance of oil supply and demand continues to be tight, with continued production challenges in non-OPEC countries, and OPEC spare capacity remaining close to a five-year low. This overall landscape leads us to believe that oil prices will be supported around current levels although remaining subject to volatility.

We still expect our international activity to grow in excess of 10% in 2012. In North America, on the other hand, the strength in Gulf of Mexico activity will continue to be challenged by weakness in the land hydraulic fracturing market and early signs of softening in the land coiled-tubing business.

In this market we will continue to maintain a relentless focus on the quality and efficiency of our execution. This, in combination with our balanced technology portfolio and unmatched international strength, creates an environment in which Schlumberger is very favorably placed to deliver superior financial results.”

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Press Release, October 19, 2012