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Empresas y finanzas

Schlumberger Announces First-Quarter 2013 Results


    Schlumberger Limited (NYSE:SLB) today reported first-quarter 2013 revenue of $10.67 billion versus $11.17 billion in the fourth quarter of 2012, and $9.92 billion in the first quarter of 2012.

    Income from continuing operations attributable to Schlumberger, excluding charges and credits, was $1.35 billion"”a decrease of 6% sequentially but an increase of 4% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.01 versus $1.08 in the previous quarter, and $0.96 in the first quarter of 2012.

    Schlumberger recorded charges of $0.07 per share in the first quarter of 2013 versus $0.06 per share in the previous quarter, and $0.01 per share in the first quarter of 2012.

    Oilfield Services revenue of $10.67 billion decreased 5% sequentially but increased 8% year-on-year. Oilfield Services pretax operating income of $2.0 billion decreased 6% sequentially but increased 4% year-on-year.

    Schlumberger CEO Paal Kibsgaard commented, "International strength, in combination with resilience to challenging market conditions in North America, led to solid performance in the first quarter. While our sequential results displayed the effects of the normal seasonal slowdown in the Northern Hemisphere and the Far East, as well as lower product sales compared to the fourth quarter, our year-on-year figures demonstrated the potential of the international market, the strength of our execution, and the importance of our integration capabilities.

    Year-on-year international growth outpaced rig count, led by the Middle East & Asia Area with strong activity in key markets such as Saudi Arabia, Iraq, Australia and China. In Europe/CIS/Africa, strength in the Sub-Saharan region, and growth in Russia and the Caspian as well as in the North Sea drove performance. Latin America was boosted by production management activity in Ecuador, strength in the Mexico & Central America and growth in the Argentina, Bolivia & Chile GeoMarkets. In North America, strong activity in Canada and solid results from the US Gulf of Mexico partially offset further pricing and activity weakness on land in the US.

    First-quarter international pricing trends remained unchanged, with a continuation of the slow but steady progress in revenue per rig that has now been observed for the last six quarters. This was driven not only by activity, but also by technology mix where we continue to introduce high-end services supported by strong execution and operational performance. In North America, pricing for land services weakened in general and further pressure on pressure pumping contracts was observed.

    The world macroeconomic environment saw mixed news in the first quarter from the main economies including China, the US and the Eurozone. Still, the overall outlook for 2013 remains largely unchanged from our earlier projections, both in terms of GDP growth as well as the fundamentals for the global oil and gas markets. We still expect that oil supply will continue to grow in North America while other non-OPEC production will likely continue to face challenges, and we expect global spare capacity to remain around current levels"”absent any unexpected macroeconomic change or geopolitical event.

    As a result, we continue to see strong and consistent growth in line with our expectations in key regions that include Sub-Sahara Africa, Russia, the Middle East, China and Australia. The outlook for North America remains uncertain, with lower-than-expected rig activity and continuing pricing weakness. And while cold weather and flattening natural gas production has resulted in significant storage withdrawals, this has yet to result in any change in dry gas drilling activity.

    In this environment, we remain focused on operational and financial outperformance in every market that we participate in. And with the commitment and drive displayed by our entire organization, I am confident that we will continue to provide superior returns to our investors going forward."

    Other Events

    • During the quarter, Schlumberger repurchased 2.5 million shares of its common stock at an average price of $77.63 for a total purchase price of $193 million.
      Condensed Consolidated Statement of Income               (Stated in millions, except per share amounts)               Three Months Periods Ended March 31,   2013   2012           Revenue   $ 10,668   $ 9,918 Interest and other income(1)     33     47 Expenses         Cost of revenue     8,442     7,810 Research & engineering     295     275 General & administrative     95     98 Merger & integration(2)     -     15 Restructuring & other(2)     92     - Interest     98     80 Income before taxes     1,679     1,687 Taxes on income(2)     412     400

    Income from continuing operations

        1,267     1,287 Income from discontinued operations     -     19 Net income     1,267     1,306

    Net income attributable to noncontrolling interests

        8     5 Net income attributable to Schlumberger   $ 1,259   $ 1,301           Schlumberger amounts attributable to:         Income from continuing operations(2)   $ 1,259   $ 1,282 Income from discontinued operations     -     19 Net income   $ 1,259   $ 1,301           Diluted earnings per share of Schlumberger         Income from continuing operations(2)   $ 0.94   $ 0.95 Income from discontinued operations     -     0.01 Net income(3)   $ 0.94   $ 0.97           Average shares outstanding     1,330     1,334 Average shares outstanding assuming dilution     1,340     1,344           Depreciation & amortization included in expenses(4)   $ 896   $ 851       1)   Includes interest income of:     Three months 2013 - $6 million (2012 - $10 million).       2)   See page 6 for details of charges and credits.       3)   Amounts may not add due to rounding.       4)   Including multiclient seismic data cost.         Condensed Consolidated Balance Sheet                           (Stated in millions)                     Mar. 31,     Dec. 31, Assets     2013     2012 Current Assets             Cash and short-term investments     $ 5,561     $ 6,274 Receivables       11,502       11,351 Other current assets       6,664       6,531         23,727       24,156 Fixed income investments, held to maturity       266       245 Fixed assets       14,805       14,780 Multiclient seismic data       582       518 Goodwill       14,580       14,585 Other intangible assets       4,734       4,802 Other assets       2,734       2,461       $ 61,428     $ 61,547               Liabilities and Equity             Current Liabilities             Accounts payable and accrued liabilities     $ 7,842     $ 8,453 Estimated liability for taxes on income       1,548       1,426 Short-term borrowings and current portion             of long-term debt       2,962       2,121 Dividend payable       419       368         12,771       12,368 Long-term debt       8,138       9,509 Postretirement benefits       2,056       2,169 Deferred taxes       1,506       1,493 Other liabilities       1,176       1,150         25,647       26,689 Equity       35,781       34,858       $ 61,428     $ 61,547                  

    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)                       Three Months   2013         Net Debt, January 1, 2013   $ (5,111 )         Income from continuing operations     1,267           Depreciation and amortization     896           Pension and other postretirement benefits expense     128           Excess of equity income over dividends received     (23 )         Stock-based compensation expense     81           Pension and other postretirement benefits funding     (177 )         Increase in working capital     (924 )         Capital expenditures     (894 )         Multiclient seismic data capitalized     (117 )         Dividends paid     (365 )         Proceeds from employee stock plans     166           Stock repurchase program     (193 )         Business acquisitions and investments, net of cash and debt acquired     (39 )         Other     (94 )         Currency effect on net debt     126           Net Debt, March 31, 2013   $ (5,273 )                       Components of Net Debt  

    Mar. 31,
    2013

         

    Dec. 31,
    2012

    Cash and short-term investments   $ 5,561         $ 6,274   Fixed income investments, held to maturity     266           245   Short-term borrowings and current portion of long-term debt     (2,962 )         (2,121 ) Long-term debt     (8,138 )         (9,509 )     $ (5,273 )       $ (5,111 )                      

    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)                                                               First Quarter 2013               Pretax       Tax      

    Noncont.
    Interest

          Net      

    Diluted
    EPS

        Income Statement Classification Schlumberger income from continuing operations,                                                         as reported       $ 1,679       $ 412       $ 8       $ 1,259       $ 0.94       Currency devaluation loss in Venezuela         92         -         -         92         0.07     Restructuring & other Schlumberger income from continuing operations,                                                         excluding charges & credits       $ 1,771       $ 412       $ 8       $ 1,351       $ 1.01                                                               Fourth Quarter 2012               Pretax       Tax      

    Noncont.
    Interest

          Net      

    Diluted
    EPS

        Income Statement Classification Schlumberger income from continuing operations,                                                         as reported       $ 1,807       $ 436       $ 9       $ 1,362       $ 1.02       Merger and integration costs         60         10         -         50         0.04     Merger & integration Workforce reduction         33         6         -         27         0.02     Restructuring & other Schlumberger income from continuing operations,                                                         excluding charges & credits       $ 1,900       $ 452       $ 9       $ 1,439       $ 1.08                                                               First Quarter 2012               Pretax       Tax      

    Noncont.
    Interest

          Net      

    Diluted
    EPS

        Income Statement Classification Schlumberger income from continuing operations,                                                         as reported       $ 1,687       $ 400       $ 5       $ 1,282       $ 0.95       Merger and integration costs         15         2         -         13         0.01     Merger & integration Schlumberger income from continuing operations,                                                         excluding charges & credits       $ 1,702       $ 402       $ 5       $ 1,295       $ 0.96                                                                   Product Groups (Stated in millions)             Three Months Ended             Mar. 31, 2013         Dec. 31, 2012         Mar. 31, 2012            

     

            Income