Schlumberger Limited reported second-quarter 2012 revenue of $10.45 billion versus $9.92 billion in the first quarter of 2012, and $8.99 billion in the second quarter of 2011.
Income from continuing operations attributable to Schlumberger, excluding charges and credits, was $1.4 billion—an increase of 8% sequentially and 20% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.05 versus $0.96 in the previous quarter, and $0.86 in the second quarter of 2011.
Following Schlumberger’s previously announced sale of both the Wilson distribution business and its equity ownership interest in CE Franklin Ltd. (CE Franklin), the Distribution segment has been reclassified to discontinued operations. All prior periods have been restated accordingly.
Schlumberger recorded charges of $0.02 per share in the second quarter and $0.01 per share in the first quarter of 2012 and $0.05 per share in the second quarter of 2011.
Oilfield Services revenue of $10.45 billion was up 5% sequentially and increased 16% year-on-year. Pretax segment operating income of $2.1 billion was up 8% sequentially and increased 20% year-on-year.
Schlumberger CEO Paal Kibsgaard commented, “Solid activity growth and a consistent focus on execution led to results that continued to strengthen in the second quarter.
Internationally, sequential results were underpinned by activity growth both offshore and in key land markets. Latin America and Middle East & Asia Areas both progressed well, while Europe, CIS and Africa showed particular strength across the Area. In North America, the Canadian spring break-up and the weakness in the US land hydraulic fracturing market lowered results although this was tempered by robust performance in other land businesses and in the US Gulf of Mexico.
Service capacity tightened further during the quarter, particularly for seismic, wireline and drilling services. We continued to test pricing on smaller contracts and we were successful in securing work at pricing premiums in some cases due to the quality and consistency of our performance.
Schlumberger Production Management saw increased activity with the flawless startup on the Shushufindi field in Ecuador, and success in securing future work with the award of the Panuco block in Mexico in partnership with Petrofac.
The quarter saw several significant new technology introductions. These included the rollout of the groundbreaking WesternGeco IsoMetrix true 3D seismic acquisition and processing system, and the unique Drilling & Measurements fully sourceless NeoScope formation evaluation tool. In addition, the Mangrove stimulation design software that brings enhanced decision making to well completions was announced.
Against these results, the worsening of the Eurozone crisis and the disappointing numbers from China and the US led to downward revisions of GDP growth and oil demand. Together with inventory builds from higher OPEC production, these brought oil prices lower in spite of tight global spare oil capacity and potential production disruption due to geopolitical events. With the situation in the global economies remaining unsettled, the present climate of uncertainty is likely to remain for some time to come.
In the midst of such uncertainty, we are maintaining focus on what we can control, which is the planning and execution of our work. We are currently undertaking further initiatives to extend our leadership in execution and we believe that such actions, together with our international strength and our balanced portfolio in North America, should enable strong relative future performance.”
Press Release , July 22, 2012