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Empresas y finanzas

Schlumberger Announces Third-Quarter 2012 Results


    Schlumberger Limited (NYSE:SLB) 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."

    Other Events:

    • During the quarter, Schlumberger repurchased 2.2 million shares of its common stock at an average price of $68.19 for a total purchase price of $149 million.
    • During the quarter, Schlumberger issued $1 billion of 1.25% five-year notes due 2017 and $1 billion of 2.40% ten-year notes due 2022.

     
     
     
     
    Condensed Consolidated Statement of Income







      (Stated in millions, except per share amounts)







     

    Third Quarter
    Nine Months Periods Ended September 30   2012   2011   2012   2011







      Revenue
    $ 10,608
    $ 9,546
    $ 30,974
    $ 26,658

    Interest and other income, net(1)



    44

    34

    137

    94 Expenses







    Cost of revenue

    8,290

    7,444

    24,265

    20,951 Research & engineering

    289

    266

    855

    800 General & administrative(2)

    95

    87

    294

    319 Merger & integration(2)

    32

    26

    68

    91 Interest     89     70     246     212 Income before taxes

    1,857

    1,687

    5,383
    $ 4,379 Taxes on income(2)     442     398     1,287     1,051 Income from continuing operations

    1,415

    1,289

    4,096

    3,328 Income from discontinued operations     12     16     51     261 Net income

    1,427

    1,305

    4,147

    3,589 Net income attributable to noncontrolling interests     3     4     20     5 Net income attributable to Schlumberger   $ 1,424   $ 1,301   $ 4,127   $ 3,584







      Schlumberger amounts attributable to:







    Income from continuing operations(2)
    $ 1,412
    $ 1,285
    $ 4,076
    $ 3,323 Income from discontinued operations     12     16     51     261 Net income   $ 1,424   $ 1,301   $ 4,127   $ 3,584







      Diluted earnings per share of Schlumberger







    Income from continuing operations(2)
    $ 1.06
    $ 0.95
    $ 3.04
    $ 2.43 Income from discontinued operations     0.01     0.01     0.04     0.19 Net income   $ 1.07   $ 0.96   $ 3.08   $ 2.62







      Average shares outstanding

    1,328

    1,345

    1,331

    1,352 Average shares outstanding assuming dilution     1,336     1,357     1,340     1,365







      Depreciation & amortization included in expenses(3)   $ 864   $ 825   $ 2,570   $ 2,415         1)   Includes interest income of:





    Third quarter 2012 - $8 million (2011 - $10 million)





    Nine months 2012 - $23 million (2011 - $28 million)



    2)

    See page 6 for details of charges and credits.





    3)
    Including multiclient seismic data cost.
     
       
    Condensed Consolidated Balance Sheet




      (Stated in millions)




     

    Sept. 30,

    Dec. 31, Assets   2012     2011 Current Assets




    Cash and short-term investments
    $ 4,760

    $ 4,827 Receivables

    11,450


    9,500 Other current assets     6,741       6,212


    22,951


    20,539 Fixed income investments, held to maturity

    246


    256 Fixed assets

    14,104


    12,993 Multiclient seismic data

    504


    425 Goodwill

    14,524


    14,154 Other intangible assets

    4,858


    4,882 Other assets     2,254       1,952     $ 59,441     $ 55,201




      Liabilities and Equity           Current Liabilities




    Accounts payable and accrued liabilities
    $ 7,913

    $ 7,579 Estimated liability for taxes on income

    1,459


    1,245 Short-term borrowings and current portion




    of long-term debt

    1,792


    1,377 Dividend payable     368       337


    11,532


    10,538 Long-term debt

    9,397


    8,556 Postretirement benefits

    1,398


    1,732 Deferred taxes

    1,642


    1,731 Other liabilities     1,161       1,252


    25,130


    23,809 Equity     34,311       31,392     $ 59,441     $ 55,201






     

    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´s indebtedness by reflecting cash and investments that could be used to repay debt. Details of changes in Net Debt for the year to date follow:



     
    (Stated in millions)



      Nine Months 2012

    Net Debt, January 1, 2012 $ (4,850 )

    Income from continuing operations
    4,096


    Depreciation and amortization
    2,570


    Pension and other postretirement benefits expense
    298


    Excess of equity income over dividends received
    (87 )

    Stock-based compensation expense
    251


    Pension and other postretirement benefits funding
    (462 )

    Increase in working capital
    (2,816 )

    Capital expenditures
    (3,162 )

    Multiclient seismic data capitalized
    (260 )

    Dividends paid
    (1,067 )

    Proceeds from employee stock plans
    385


    Stock repurchase program
    (972 )

    Business acquisitions and investments, net of cash and debt acquired
    (712 )

    Proceeds from the sale of Wilson
    906


    Proceeds from the sale of CE Franklin
    122


    Other
    (472 )

    Currency effect on net debt   49  

    Net Debt, September 30, 2012 $ (6,183 )




      Components of Net Debt

    Sept. 30,
    2012

     

    Dec. 31,
    2011

    Cash and short-term investments $ 4,760

    $ 4,827
    Fixed income investments, held to maturity
    246


    256
    Short-term borrowings and current portion of long-term debt
    (1,792 )

    (1,377 ) Long-term debt   (9,397 )
      (8,556 )
    $ (6,183 )
    $ (4,850 )






     

    Charges & Credits

    In addition to financial results determined in accordance with US generally accepted accounting principles (GAAP), this document also includes non-GAAP financial measures (as defined under the SEC´s Regulation G). The following is a reconciliation of these non-GAAP measures to the comparable GAAP measures:


     
     


    (Stated in millions, except per share amounts)




     
     
     
     




    Third Quarter 2012



    Pretax   Tax  

    Noncont.
    Interest

      Net  

    Diluted
    EPS


    Income Statement Classification Schlumberger income from continuing operations,

    as reported


    $ 1,857
    $ 442
    $ 3
    $ 1,412
    $ 1.06

    Merger and integration costs
      32     4     -     28     0.02
    Merger & integration Schlumberger income from continuing operations,

    excluding charges & credits


    $ 1,889   $ 446   $ 3   $ 1,440   $ 1.08













     

    Second Quarter 2012



    Pretax   Tax  

    Noncont.
    Interest

      Net  

    Diluted
    EPS


    Income Statement Classification Schlumberger income from continuing operations,

    as reported


    $ 1,839
    $ 445
    $ 12
    $ 1,382
    $ 1.03

    Merger and integration costs
      22     1     -     21     0.02
    Merger & integration Schlumberger income from continuing operations,

    excluding charges & credits


    $ 1,861   $ 446   $ 12   $ 1,403   $ 1.05













     

    Third Quarter 2011



    Pretax   Tax  

    Noncont.
    Interest

      Net  

    Diluted
    EPS(*)


    Income Statement Classification Schlumberger income from continuing operations,

    as reported


    $ 1,687
    $ 398
    $ 4
    $ 1,285
    $ 0.95

    Merger and integration costs
      26     3     -     23     0.02
    Merger & integration Schlumberger income from continuing operations,

    excluding charges & credits


    $ 1,713   $ 401   $ 4   $ 1,308   $ 0.96













     

    Nine Months 2012



    Pretax   Tax  

    Noncont.
    Interest

      Net  

    Diluted
    EPS


    Income Statement Classification Schlumberger income from continuing operations,

    as reported


    $ 5,383
    $ 1,287
    $ 20
    $ 4,076
    $ 3.04

    Merger and integration costs
      68     6     -     62     0.05
    Merger & integration Schlumberger income from continuing operations,

    excluding charges & credits


    $ 5,451   $ 1,293   $ 20   $ 4,138   $ 3.09













     

    Nine Months 2011



    Pretax   Tax