Schlumberger 2Q Income Increases (USA)

Schlumberger Limited today reported second-quarter 2013 revenue of $11.18 billion versus $10.57 billion in the first quarter of 2013, and $10.34 billion in the second quarter of 2012.

Income from continuing operations attributable to Schlumberger, excluding charges and credits, was $1.54 billion—an increase of 19% sequentially and an increase of 14% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.15 versus $0.97 in the previous quarter, and $1.01 in the second quarter of 2012.

Schlumberger completed the wind down of service operations in Iran during the second quarter of 2013. Accordingly, the historical results of this business have been reclassified to discontinued operations and all prior periods have been restated.

Schlumberger recorded $0.51 per share of net credits in the second quarter of 2013 versus charges of $0.07 per share in the previous quarter, and charges of $0.02 per share in the second quarter of 2012.

Oilfield Services revenue of $11.18 billion was up 6% sequentially and increased 8% year-on-year. Oilfield Services pretax operating income of $2.28 billion was up 16% sequentially and increased 12% year-on-year.

Schlumberger CEO Paal Kibsgaard commented, “Strong Schlumberger second-quarter results were marked by significantly higher international activity, both offshore and in key land markets. In North America, we benefited from solid execution on land and further strength in deepwater activity to achieve solid overall progress despite competitive land pricing and the effects of the Western Canada spring break-up. Double-digit sequential revenue growth was recorded by the Reservoir Characterization Group and by the Middle East & Asia and the Europe/CIS/Africa Areas. All Areas displayed strong execution and integration performance that, together with new technology sales, helped operating margins reach or exceed 20% across all geographies.

International results were led by the Middle East & Asia Area, as exploration and drilling activity rebounded in China and Australia, growth continued in the key markets of Saudi Arabia and Iraq, and both land and marine seismic activity showed further progress. In Europe/CIS/Africa, activity levels rebounded in Russia and the North Sea, while increased exploration in parts of Sub-Saharan Africa further boosted growth. Latin America saw increasing Integrated Project Management activity, although the effect of this was offset by seasonal seismic vessel transits.

New technology deployment was strong in the quarter with growing customer interest in new formation evaluation, drillbit and well intervention products and services. The OneSubsea™ joint venture was completed with Cameron, and we look forward to the opportunities for the best-in-class new subsea technologies and solutions that we expect this new organization to provide. Elsewhere, our growing integration capability has led to organizational changes that combine our leading project and production management businesses to fuel growth through joint expertise and portfolio alignment.

The soft global economic picture has changed little since the first quarter. The U.S. has shown virtually no impact from the financial sequester, the Eurozone remains in recession, and data from China continue to be mixed. Given the lack of change, supply and demand for both oil and natural gas remain stable, which is also reflected in oil and gas prices. E&P spending, however, has been revised upwards making this year the fourth consecutive year of double-digit spending increases and pointing to the long-term nature of oil and gas developments.

As a result, we continue to see consistent growth as spending plans are confirmed by rig count outlooks and customer activity. We remain confident in the industry outlook, our strategic positioning in the markets in which we operate, the strength of our technology portfolio and in our ability to further improve our overall performance.”

 

Press Release, July 19, 2013

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