Schlumberger Announces Third-Quarter 2007 Results
Schlumberger Limited (NYSE:SLB) today reported third-quarter
revenue of $5.93 billion versus $5.64 billion in the second quarter of
2007, and $4.95 billion in the third quarter of 2006.
Net income reached $1.35 billion--an increase of 8% sequentially
and 35% year-on-year. Diluted earnings-per-share were $1.09 versus
$1.02 in the previous quarter, and $0.81 in the third quarter of 2006.
Oilfield Services revenue of $5.13 billion increased 3%
sequentially and 19% year-on-year. Pretax business segment operating
income of $1.51 billion was essentially flat sequentially but
increased 23% year-on-year.
WesternGeco revenue of $794 million increased 19% sequentially and
20% year-on-year. Pretax business segment operating income of $306
million increased 42% sequentially and 32% year-on-year.
Schlumberger Chairman and CEO Andrew Gould commented, "Growth in
the third quarter was driven by international markets particularly in
Latin America, Russia, China and Indonesia. In North America,
increased activity in Canada was offset by weaker pricing for pressure
pumping in certain regions on land, and a sharp revenue drop in the
Gulf of Mexico due to the departure of several rigs to overseas
locations and the loss of approximately 15 operating days due to
precautionary stand downs for approaching weather systems.
Technology growth was strongest at WesternGeco, as the segment
recovered from the second-quarter dry docks and vessel transits.
Marine acquisition revenue for the quarter was an all-time record as
advanced Q-Technology acquisition techniques continued to be deployed.
In other Technologies, growth was led by robust IPM activity and by
demand for Wireline and Drilling & Measurements services, particularly
in overseas markets.
In the immediate future, while there will be some recovery from
low activity levels in the Gulf of Mexico, natural gas activity in
both Canada and the US is likely to stabilize as production remains
relatively strong and gas storage approaches winter at comfortable
levels. As a result, pressure-pumping pricing deterioration will
continue. The current situation does not however change our view that
North American natural gas supply will require sustained activity to
combat production decline, and technology to increase production rates
from poorer quality reservoirs. Overseas, growth will continue at
varying rates between regions due to the effects of winter weather and
project delays in certain countries.
Global demand for oil remains strong while non-OPEC production
continues to disappoint. Production decline rates in mature areas and
continuing project delays will inhibit non-OPEC supply increases,
while personnel and equipment shortages will restrict the industry's
ability to respond."
Other Events
-- As part of the previously announced 40 million-share
repurchase program approved by the Board of Directors in the
second quarter of 2006, Schlumberger repurchased 3.1 million
shares during the third quarter of 2007 for a total amount of
$293 million, at an average price of $93.62 per share. Under
this program 24.1 million shares had been repurchased as of
September 30, 2007.
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*T
Consolidated Statement of Income
(Stated in thousands
except per share
amounts)
Third Quarter Nine Months
---------------------- ------------------------
For Periods Ended
September 30 2007 2006 2007 2006
----------------------------------------------------------------------
Revenue $5,925,662 $4,954,818 $17,028,829 $13,880,610
Interest and other
income (1)(3) 107,578 70,699 288,685 199,781
Expenses
Cost of goods sold
and services (3) 3,905,095 3,361,555 11,264,310 9,605,372
Research &
engineering (3) 190,194 149,538 531,971 449,834
Marketing 21,904 17,632 58,585 49,474
General &
administrative 137,260 117,176 375,576 323,615
Interest 68,622 62,351 203,039 171,616
----------------------------------------------------------------------
Income before taxes
and minority interest 1,710,165 1,317,265 4,884,033 3,480,480
Taxes on income (3) 356,168 317,434 1,090,730 852,504
----------------------------------------------------------------------
Income before minority
interest 1,353,997 999,831 3,793,303 2,627,976
Minority interest (3) - (7) - (48,741)
----------------------------------------------------------------------
Net Income (3) $1,353,997 $ 999,824 $ 3,793,303 $ 2,579,235
----------------------------------------------------------------------
Diluted Earnings Per
Share (3) $ 1.09 $ 0.81 $ 3.08 $ 2.09
Average shares
outstanding 1,194,175 1,183,683 1,185,624 1,182,795
Average shares
outstanding assuming
dilution 1,243,808 1,243,966 1,238,675 1,243,579
Depreciation &
amortization included
in expenses (2) $ 497,661 $ 392,765 $ 1,399,570 $ 1,122,410
----------------------------------------------------------------------
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*T
1) Includes interest income of:
Third Quarter 2007 - $44 million (2006 - $25 million)
Nine Months 2007 - $114 million (2006 - $90 million)
2) Including Multiclient seismic data costs.
3) See page 6 for details of Charges & Credits.
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*T
Condensed Balance Sheet
(Stated in
thousands)
Assets Sept. 30, 2007 Dec. 31, 2006
----------------------------------------------------------------------
Current Assets
Cash and short-term investments $ 3,238,119 $ 2,998,873
Other current assets 7,697,610 6,186,789
----------------------------------------------------------------------
10,935,729 9,185,662
Fixed income investments, held to
maturity 382,582 153,000
Fixed assets 6,686,750 5,576,041
Multiclient seismic data 223,100 226,681
Goodwill 5,079,953 4,988,558
Other assets 2,998,400 2,702,196
----------------------------------------------------------------------
$ 26,306,514 $ 22,832,138
----------------------------------------------------------------------
Liabilities and Stockholders' Equity
----------------------------------------------------------------------
Current Liabilities
Accounts payable and accrued
liabilities $ 4,158,374 $ 3,848,017
Estimated liability for taxes on
income 1,026,290 1,136,529
Bank loans and current portion of
long-term debt 770,776 1,321,529
Convertible debentures 491,609 -
Dividend payable 210,660 148,720
----------------------------------------------------------------------
6,657,709 6,454,795
Convertible debentures 443,015 1,424,990
Other long-term debt 3,598,761 3,238,952
Postretirement benefits 951,394 1,036,169
Other liabilities 637,915 257,349
----------------------------------------------------------------------
12,288,794 12,412,255
Stockholders' Equity 14,017,720 10,419,883
----------------------------------------------------------------------
$ 26,306,514 $ 22,832,138
----------------------------------------------------------------------
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*T
Net Debt
"Net Debt" represents gross debt less cash, short-term investments and
fixed income investments, held to maturity. Management believes that
Net Debt provides useful information regarding the level of
Schlumberger indebtedness. Details of the Net Debt follow:
*T
-0-
*T
(Stated in
millions)
Nine Months 2007
-------------------------------------------------------
Net Debt, January 1, 2007 $ (2,834)
Net income 3,793
Depreciation and amortization 1,400
Excess of equity income over dividends
received (128)
Increase in working capital
requirements (856)
US qualified pension plan contribution (150)
Capital expenditure (1) (2,207)
Dividends paid (562)
Proceeds from employee stock plans 521
Stock repurchase program (798)
Business acquisitions (196)
Conversion of debentures 490
Other (64)
Translation effect on net debt (92)
-------------
Net Debt, September 30, 2007 $ (1,683)
=============
Components of Net Debt Sept. 30, 2007 Dec. 31, 2006
----------------------------------------------------------------------
Cash and short-term investments $ 3,238 $ 2,999
Fixed income investments, held to
maturity 383 153
Bank loans and current portion of long-
term debt (771) (1,322)
Convertible debentures (934) (1,425)
Other long-term debt (3,599) (3,239)
------------- -------------
$ (1,683) $(2,834)
============= =============
(1) Including Multiclient seismic data
expenditure.
*T
-0-
*T
Charges & Credits
Net Income for the nine months 2006 included the impact of the Charges
& Credits described below:
*T
-0-
*T
(Stated in
millions
except per
share amounts)
Nine Months 2006
-----------------------------------------
Diluted Income
Pretax Tax Min Int Net EPS Statement
Classification
----------------------------------------- ---------------
Net
Income
per
Consolidated
Statement of
Income $3,480.5 $852.5 $(48.8) $2,579.2 $ 2.09
Add back
Charges &
Credits:
-
WesternGeco
in-process Research &
R&D charge 21.0 - - 21.0 0.02 engineering
- Loss on
sale of
investments
to fund the
WesternGeco Interest and
transaction 9.4 - - 9.4 0.01 other income
-
WesternGeco Cost of goods
visa sold and
settlement 9.7 (0.3) (3.2) 6.8 0.01 services
- Other in-
process R&D Research &
charges 5.6 - - 5.6 - engineering
-----------------------------------------
Net Income
before
charges &
credits $3,526.2 $852.2 $(52.0) $2,622.0 $ 2.13
=========================================
Effective tax
rate:
- GAAP 24.5%
- Before
charges &
credits 24.2%
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*T
Business Review
Business Segments
------------------------------
( Stated in millions)
Third Quarter Nine Months
------------------ --------------------
% %
2007 2006 chg 2007 2006 chg
------------------ --------------------
Oilfield Services
------------------------------
Revenue $5,128 $4,297 19% $14,862 $12,134 22%
Pretax Operating Income $1,505 $1,223 23% $ 4,424 $ 3,316 33%
WesternGeco
------------------------------
Revenue $ 794 $ 661 20% $ 2,165 $ 1,754 23%
Pretax Operating Income $ 306 $ 232 32% $ 789 $ 550 43%
*T
Pretax operating income represents the segments' income before
taxes and minority interest. The pretax operating income excludes
corporate expenses, interest income, interest expense, amortization of
certain intangible assets, interest on postretirement medical
benefits, stock-based compensation costs and the Charges & Credits
described on page 6, as these items are not allocated to the segments.
Oilfield Services
Third-quarter revenue of $5.13 billion was 3% higher sequentially
and 19% higher year-on-year.
Sequential revenue increases were highest in Latin America led by
the Mexico/Central America and Peru/Colombia/Ecuador GeoMarkets
followed by Europe/CIS/Africa, particularly in the East Russia and
North Africa GeoMarkets, with growth also recorded in Middle East &
Asia, led by the China/Japan/Korea and Indonesia GeoMarkets. In North
America, the strong increase in revenue following the seasonal spring
breakup in Canada was not enough to offset lower revenue in the US
GeoMarkets. This was the result of a sharp revenue drop in the US Gulf
of Mexico due to the transfer of several rigs to overseas locations
and from the loss of approximately 15 operating days due to
precautionary stand downs for approaching weather systems. In the
North American pressure-pumping stimulation services market,
capacity-driven pricing erosion continued.
Pretax operating income of $1.51 billion was essentially flat
sequentially but increased 23% year-on-year. Sequentially, growth
through stronger demand for Well Services and Wireline technologies in
Canada; a more favorable activity mix in the Mexico/Central America
GeoMarket; higher activity levels and a favorable technology mix in
Peru/Colombia/Ecuador; and increased high-margin Drilling &
Measurements activity in China/Japan/Korea and Eastern Russia was
experienced. However, this growth was more than offset by the
weather-related effects in the US Gulf of Mexico and the
pressure-pumping pricing erosion on land in the US. The overall
Oilfield Services pretax operating margin was 29.4%.
Advanced technology uptake continued during the quarter as demand
for new Wireline technologies was driven by the need for more accurate
formation evaluation. New Wireline Scanner* deployments included
high-pressure, high-temperature applications in the US Gulf of Mexico,
use for thin-bed and laminated-sand analysis in the US and West
Africa, and for evaluation of additional natural gas production in
Mexico. Total jobs run with Scanner technology now exceed 1,500
worldwide, with more than 300 tools deployed. Drilling & Measurements
Scope* services also continued their worldwide expansion with
PeriScope* imaging-while-drilling jobs in China and TeleScope*
high-speed telemetry in combination with StethoScope* formation
pressure-while-drilling operations in Qatar, Brunei and the US Gulf of
Mexico.
North America
Revenue of $1.30 billion decreased 3% sequentially and 3%
year-on-year. Pretax operating income of $350 million decreased 16%
sequentially and 15% year-on-year.
Sequentially, revenue in the Canada GeoMarket rebounded on the
higher rig count led by demand for Well Services and Wireline
technologies following the seasonal spring break-up. However, this
growth was more than offset by a slowdown in the US Gulf Coast due to
operator caution during the hurricane season; lower exploration-driven
activity associated with seasonal facilities and rig maintenance in
Alaska; and the pricing erosion in pressure-pumping stimulation
services in all three US land GeoMarkets.
Pretax operating margin for the Area declined sequentially to
26.9% primarily due to the weather-related effects on activity in the
US, particularly in the Gulf of Mexico; lower high-margin exploration
activity in Alaska; and the lower pricing environment for
pressure-pumping stimulation services in the US land GeoMarkets. In
Canada, however, margins grew as a result of improved utilization of
people and equipment as activity rebounded.
In the US Gulf of Mexico, Rt Scanner* and Sonic Scanner*--members
of the Schlumberger Wireline Scanner Family* of rock and fluid
characterization services--were run for the first time for BP in a
high-pressure environment. The technologies were successfully deployed
to a total depth of 29,300 ft where bottom-hole pressures exceeded 23
kpsi. Coordination between the field and Schlumberger Data &
Consulting Services (DCS) allowed delivery of high-quality dip results
from the Rt Scanner enabling the customer to determine subsequent
drilling plans.
BP also deployed in the US Gulf of Mexico advanced Schlumberger
Drilling & Measurements technologies to run a complex bottom-hole
assembly in a hostile deep-water environment. The unique toolstring
combination included PowerDrive* rotary-steerable systems, VISION*
imaging-while-drilling measurements, TeleScope high-speed telemetry
and StethoScope formation pressure-while-drilling technologies.
Elsewhere in the US Gulf of Mexico, BHP Billiton Petroleum set a
new benchmark for subsalt deep-water drilling by achieving a record
average of only one-and-a-half days per 1,000 ft, utilizing
Schlumberger Drilling & Measurements PowerDrive rotary-steerable
technology, TeleScope high-speed telemetry and VISION resistivity
measurements in all six hole sections.
In Oklahoma, Devon Energy and Schlumberger DCS continued to
develop a comprehensive formation evaluation methodology for the
customer's horizontal Barnett Shale play. This methodology integrates
the latest in Schlumberger seismic, logging, micro-seismic and core
analysis technologies to develop and optimize the completion
process. The efforts bring deeper understanding across the Barnett
Shale play in the areas of stress analysis, fracture-height
containment and rock mechanics--allowing for increased effectiveness
during stimulation of these wells.
In South Texas, Brigham Oil and Gas deployed the Rt Scanner
triaxial induction tool to identify two laminated sand bodies that
would have been overlooked with conventional petrophysical analysis.
The assessment revealed 64 ft of net pay in these zones, which were
subsequently perforated and stimulated and are now producing
approximately 3 MMscfd.
Latin America
Revenue of $863 million increased 13% sequentially and 37%
year-on-year. Pretax operating income of $204 million increased 14%
sequentially and 58% year-on-year.
Sequential revenue growth was primarily driven by a continuing
ramp-up in Integrated Project Management (IPM) activity. A higher rig
count coupled with stronger demand for Drilling & Measurements,
Artificial Lift Systems and Schlumberger Information Solutions
technologies in the Peru/Colombia/Ecuador GeoMarket also contributed
to growth.
Pretax operating margin increased sequentially to 23.7% as a
result of an increase in exploration-related higher-margin Drilling &
Measurements services in Peru/Colombia/Ecuador and a more favorable
activity mix on IPM projects.
In Colombia, the National Hydrocarbon Agency awarded Schlumberger
implementation of a state-of-the-art solution for stereoscopic
visualization and collaborative immersion using Petrel*
seismic-to-simulation software.
In the Mexico/Central America GeoMarket, Schlumberger performed
the first StageFRAC* multistage fracturing and completion operation in
Latin America. Part of the Contact* family of staged fracturing and
completion services, StageFRAC delivers effective stimulation of
multi-layered reservoirs ensuring optimal treatment of each zone,
while reducing total treatment time. This marked the first time that a
well was completed with the StageFRAC system outside North America.
In Mexico, Pemex ran the Sonic Scanner advanced acoustic scanning
tool and the Rt Scanner triaxial induction tool in combination on a
deep-water well, revealing a significantly larger gas zone than
previously expected. The radial profile acquired by the Sonic Scanner
identified additional production from a zone the customer previously
thought uneconomical.
Europe/CIS/Africa
Revenue of $1.69 billion increased 5% sequentially and 28%
year-on-year. Pretax operating income of $495 million increased 7%
sequentially and 38% year-on-year.
Sequential revenue growth was driven by seasonally higher activity
levels on land and offshore in the East Russia GeoMarket; increased
demand for IPM services and for Artificial Lift Systems products in
South Russia; higher demand for Drilling & Measurements technologies
in North Russia; and the impact of the consolidation of
Tyumenpromgeofizika. Increased demand for Well Services and Drilling &
Measurements technologies in North Africa; higher demand for
Artificial Lift Systems products in Continental Europe; and stronger
demand for Wireline and Well Testing technologies in West and South
Africa also contributed to growth. However, this was partially offset
by project slowdowns in Nigeria and the Caspian, and by lower activity
in Libya.
The Area pretax operating margin increased by 50 basis points
(bps) sequentially to reach 29.2% driven primarily by increased demand
for higher-margin Well Services and Drilling & Measurements
technologies in North Africa and a more favorable activity mix in the
Russia GeoMarkets. This performance was partially offset by the
project slowdowns in Nigeria and the Caspian and by lower demand for
higher-margin Wireline and Drilling & Measurements technologies in
Libya.
Offshore Norway, Schlumberger performed a complex formation
evaluation program on the high-pressure, high-temperature Onyx South
West appraisal well for Norske Shell using the new Wireline InSitu
Density* fluid characterization service. A member of the InSitu
Family* of quantitative fluid properties measurements, the advanced
technology was deployed on state-of-the-art wireline cables rated to
500 deg F using a high-tension capstan.
In Russia, the Sakhalin Energy Investment Company (SEIC) awarded
Schlumberger a multi-well intelligent completions contract for the
supply of downhole flow-control valves, permanent gauges and
distributed temperature systems for the SEIC Piltun Astokhskoye B
platform. The work scope comprises water injection wells scheduled to
be drilled and completed offshore Sakhalin Island over the next three
years. Plans for each well include a three- to four-zone intelligent
completion.
In North Russia, FiberFRAC* fiber-based fracturing fluid
technology was introduced for Gazprom neft (Sibneft-Noyabrskneftegaz).
The application resulted in a production increase of more than 20%
over that achieved with current hydraulic fracturing techniques.
FiberFRAC technology allows customization of fracturing fluid
properties for varying reservoir conditions and enables optimization
of the stimulation design and treatment leading to improved
production.
Elsewhere in Russia, Schlumberger was awarded a contract for more
than 400 electrical-submersible pump systems. These systems will be
manufactured in the Schlumberger Russia manufacturing facility located
in Tyumen, Western Siberia.
In the UK sector of the North Sea, Venture Production plc deployed
the first FlexSTIM* modular skid-mounted stimulation package capable
of large-scale fracturing operations. Installed on a supply vessel,
the system placed multiple-propped fracture treatments in a horizontal
gas well. Following stimulation, the well tested at rates approaching
50 MMscfd--providing the customer additional production of more than
9,000 barrels of oil equivalent per day, including associated gas
condensate. The FlexSTIM technique offers an alternative to leasing a
dedicated stimulation vessel.
In West Africa, operators Total, Eni and Sonangol adopted
integration of Schlumberger Wireline Scanner Family and Quicksilver
Probe* rock and fluid characterization measurement technologies for
thin-bed reservoir exploration and reservoir studies where analysis of
fluid properties and distribution is complex--effectively minimizing
risk and maximizing reserves.
Middle East & Asia
Revenue of $1.23 billion increased 1% sequentially and 28%
year-on-year. Pretax operating income of $438 million increased 2%
sequentially and 42% year-on-year.
The sequential growth in revenue resulted from higher activity in
the China/Japan/Korea, Indonesia, Australia/Papua New Guinea, India,
Brunei/Malaysia/Philippines and Gulf GeoMarkets. This growth was
partially offset by lower activity in Qatar and Thailand/Vietnam.
Pretax operating margin increased sequentially to 35.7% driven by
the activity mix in China/Japan/Korea; increased demand for
higher-margin Drilling & Measurements and Well Testing technologies in
Australia/Papua New Guinea; and higher demand for Wireline and Well
Testing technologies in Brunei/Malaysia/Philippines. This performance
was partially offset by the slowdown in the Thailand/Vietnam
GeoMarket.
In the Middle East, as part of a deep-reading technology
collaboration project with Saudi Aramco, Schlumberger conducted the
world's deepest cross-well electromagnetic survey in the Ghawar
field--the world's largest oilfield--using the Electromagnetic Imaging
technique that provides reservoir scale measurements to map fluid
distribution. Although it stands as the deepest-reading survey
completed to date, the key achievement was the well separation, which
was in the range of 860 meters.
In Saudi Arabia, Saudi Aramco selected StageFRAC multistage
fracturing and completion technology for a staged-acid fracturing
treatment in a 5,000-ft openhole section in an oil well in a carbonate
reservoir where seven intervals were stimulated and tested in one
trip. Post-treatment evaluation indicated that production doubled.
In the United Arab Emirates, increased activity and strong
customer-support services led to an increase in the number of ECLIPSE*
reservoir simulation software licenses purchased by the Abu Dhabi
National Oil Company. ECLIPSE advanced technology enables oil and gas
customers to better simulate reservoir behavior over the life of the
field.
In China, Schlumberger Drilling & Measurements PeriScope 15*
technology was deployed for the PetroChina Xinjiang Oil Company to
enable placement of six horizontal wells in the sweet spot of a
heavy-oil reservoir while staying within two meters of the undulating
reservoir bottom contact. Use of this technology resulted in an
average reservoir contact of 98%.
WesternGeco
Third-quarter revenue of $794 million increased 19% sequentially
and was 20% higher compared to the same period last year. Pretax
operating income of $306 million increased 42% sequentially and 32%
year-on-year.
Sequentially, Marine revenue increased due to higher vessel
utilization following seasonal transits and scheduled dry dock
inspections in the prior quarter, full-quarter utilization of the
seventh Q* vessel, and improved pricing for conventional and Q-Marine*
surveys. Data Processing revenue also increased driven primarily by
higher sales in Europe, North America and Asia. These increases were
partially offset by lower Multiclient sales while Land activity
remained flat.
Pretax operating margins increased by a robust 611 bps to reach
38.6% driven by higher operating leverage in Marine and higher-margin
Data Processing activities.
Shanghai Petroleum Co., Ltd. awarded WesternGeco the first
Q-Marine acquisition survey in China, which was completed in August
using the vessel Geco Searcher to cover an area of more than 380 sq
km.
In Mexico, Pemex awarded an integrated Q-Marine acquisition and
processing survey covering 7,050 sq km of the Temoa field. Acquisition
began in July 2007 and is expected to be completed in December 2007.
In Africa, Petrobras awarded WesternGeco an integrated Q-Marine
acquisition and processing survey to cover 1,200 sq km in Angola Block
6. The survey was completed ahead of schedule.
WesternGeco recently completed a 1,100 sq km 3D land seismic
acquisition project for Abu Dhabi National Oil Company in South East
Abu Dhabi. The survey area consisted of 180-m high sand dunes and the
survey was completed three months ahead of schedule.
During the quarter, Schlumberger acquired a minority interest in
PetroMarker, a Norwegian-based developer of marine electromagnetics
measurements and interpretation technology. This acquisition will
complement the WesternGeco integration of seismic and electromagnetics
services designed to introduce a step change in reservoir definition.
In the US Gulf of Mexico, WesternGeco announced the expansion of
the E-Octopus wide-azimuth towed-streamer survey with the fourth and
fifth phases scheduled to commence in January 2008. These surveys
offer the unique advantage of more precise base and edge-of-salt
definition through multi-measurement constrained imaging--the
integration of magnetotellurics, gravity and Q-Marine data. As part of
the E-Octopus survey, WesternGeco has developed the world's first
onboard prestack wave-extrapolation (WEM) depth migration using
proprietary Q-Xpress* techniques to provide quick-look migrated data
volumes for interpretation, quality control, illumination, and to meet
in-fill acquisition requirements. The E-Octopus final deliverables
will include the latest state-of-the-art technologies such as
anisotropic multi-azimuthal tomography, wavefield extrapolation
demultiple and shot domain WEM with angle gathers.
About Schlumberger
Schlumberger is the world's leading oilfield services company
supplying technology, information solutions and integrated project
management that optimize reservoir performance for customers working
in the oil and gas industry. The company employs more than 76,000
people of over 140 nationalities working in approximately 80
countries. Schlumberger supplies a wide range of products and services
from seismic acquisition and processing; formation evaluation; well
testing and directional drilling to well cementing and stimulation;
artificial lift and well completions; and consulting, software, and
information management. In 2006, Schlumberger operating revenue was
$19.23 billion. For more information, visit www.SLB.com.
* Mark of Schlumberger
Notes
Schlumberger will hold a conference call to discuss the above
announcement on Friday, October 19, 2007, at 9:00am Eastern, 8:00am
Central (2:00pm London time/3:00pm Paris time). To access the call,
which is open to the public, please contact the conference call
operator at +1-800-230-1059 (toll free) within North America, or
+1-612-288-0329 outside of North America, approximately 10 minutes
prior to the scheduled start time. Ask for the "Schlumberger Earnings
Conference Call." A replay of the conference call will be available
through November 18, 2007, by dialing +1-800-475-6701 within North
America or +1-320-365-3844 outside of North America, and providing the
access code 886387.
The conference call will be webcast simultaneously at
www.SLB.com/irwebcast on a listen-only basis. Please log in 15 minutes
ahead of time to test your browser and register for the call. A replay
of the webcast will also be available at the same web site.
Supplemental information in the form of a question and answer
document on this press release and financial schedules are available
at www.SLB.com/ir.