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Empresas y finanzas

Schlumberger Announces Third?Quarter 2008 Results


    Schlumberger Limited (NYSE:SLB) today reported third–quarter revenue of $7.26 billion versus $6.75 billion in the second quarter of 2008, and $5.93 billion in the third quarter of 2007.

    Net income was $1.53 billion"”an increase of 7% sequentially and 13% year–on–year. Diluted earnings–per–share was $1.25 versus $1.16 in the previous quarter, and $1.09 in the third quarter of 2007.

    Oilfield Services revenue of $6.36 billion increased 5% sequentially and 24% year–on–year. Pretax segment operating income of $1.70 billion was flat sequentially but increased 13% year–on–year.

    WesternGeco revenue of $892 million increased 33% sequentially and 12% year–on–year. Pretax segment operating income of $355 million increased 81% sequentially and 16% year–on–year.

    Schlumberger Chairman and CEO Andrew Gould commented, "A strong continuation in sequential revenue growth in the third quarter was led by further strengthening of gas drilling activity on land in the US and Canada, a very active summer drilling season in Russia and continued growth of IPM activity in Latin America. Margin performance was generally satisfactory apart from the heavy impact of the hurricane season on North America and higher than usual third–party managed services revenue at low margins in Latin America, due in part to the start up of the Burgos 7 contract.

    WesternGeco reported excellent Marine results and a strong recovery in multi–client sales revenues.

    As we enter the fourth quarter, the recent rapid deterioration in credit markets will undoubtedly have an effect on our activity though we anticipate this will largely be limited to North America and in some emerging exploration markets overseas. The strengthening production of North American natural gas has also led a number of customers to reduce spending early.

    At the present time, the rate at which the world economy will slow has become increasingly uncertain. We have always maintained that the one event that could slow the rate of increase in worldwide exploration and production spending would be a reduction in the demand for oil caused by a severe global recession. At the moment, it is still too soon to predict to what extent current events will affect overall activity in 2009, but we anticipate a slowing in the rate of increase of customer spending.

    However, the weakness of the current supply base, the age of the production profile and the decrease in reserve replacement "” all of which we have indicated on many occasions "” are such that any significant drop in exploration and production investment would rapidly provoke an even stronger recovery.

    Schlumberger has an unparalleled technology position, a strong balance sheet, an unmatched global presence and an excellent and highly motivated workforce. I have no doubt we will emerge from the current turmoil even stronger than before."

    Other Events

    • During the quarter, Schlumberger repurchased 5.96 million shares of common stock at an average price of $91.45 for a total of $545 million under the $8 billion repurchase program approved by the Board of Directors on April 17, 2008.
    • The overall impact of the hurricane season on Schlumberger third–quarter earnings was estimated at $0.04 per share. Without this effect, diluted earnings–per–share would have been $1.29.
    • On August 28, 2008, Sword Canada Acquisition Corp., an acquisition company indirectly and jointly owned by Schlumberger Limited and First Reserve Corporation, completed the purchase of all issued and outstanding common shares of Calgary–based Saxon Energy Services, Inc., a land drilling contractor with significant presence in North and South America.
    Consolidated Statement of Income                           (Stated in thousands except per share amounts)                           Third Quarter   Nine Months For Periods Ended September 30   2008   2007   2008   2007                     Revenue   $ 7,258,869     $ 5,925,662  

    $

    20294890

        $ 17,028,829 Interest and other income (1)     106,719       107,578     305,946       288,685 Expenses                   Cost of goods sold and services     4,966,384       3,905,095     13,933,558       11,264,310   Research & engineering     208,168       190,194     596,573       531,971   Marketing     22,645       21,904     71,484       58,585   General & administrative     149,623       137,260     434,085       375,576   Interest     61,148       68,622     188,543       203,039                     Income from Continuing Operations before taxes and minority interest     1,957,620       1,710,165     5,376,593       4,884,033 Taxes on income     418,142       356,168     1,104,460       1,090,730 Income from Continuing Operations before minority interest     1,539,478       1,353,997     4,272,133       3,793,303 Minority interest     (13,116 )     –     (25,322 )     – Income from Continuing Operations     1,526,362       1,353,997     4,246,811       3,793,303 Income from Discontinued Operations     –       –     37,850       –                     Net Income   $ 1,526,362     $ 1,353,997   $ 4,284,661     $ 3,793,303                     Diluted Earnings Per Share                 Income from Continuing Operations   $ 1.25     $ 1.09   $ 3.46     $ 3.08 Income from Discontinued Operations     –       –     0.03       – Net Income (3)   $ 1.25     $ 1.09   $ 3.50     $ 3.08                     Average shares outstanding     1,198,823       1,194,175     1,196,660       1,185,624 Average shares outstanding assuming dilution     1,225,112       1,243,808     1,228,579       1,238,675                     Depreciation & amortization included in expenses (2)   $ 583,354     $ 497,661   $ 1,655,895     $ 1,399,570                               1)   Includes interest income of:     Third Quarter 2008 – $31 million (2007 – $44 million)     Nine Months 2008 – $93 million (2007 – $114 million)       2)   Including Multiclient seismic data costs.       3)   Amounts may not add due to rounding. Condensed Balance Sheet                   (Stated in thousands)             Assets   Sept. 30, 2008   Dec. 31, 2007 Current Assets           Cash and short–term investments   $ 3,493,419   $ 3,169,033   Other current assets   9,584,442   7,886,350       13,077,861   11,055,383 Fixed income investments, held to maturity   511,090   440,127 Fixed assets   9,213,113   8,007,991 Multiclient seismic data   277,260   182,282 Goodwill   5,294,555   5,142,083 Other assets   3,223,797   3,025,506                   $ 31,597,676   $ 27,853,372                         Liabilities and Stockholders´ Equity         Current Liabilities           Accounts payable and accrued liabilities   $ 4,997,311   $ 4,550,728   Estimated liability for taxes on income   1,164,439   1,071,889   Bank loans and current portion of long–term debt   2,211,423   1,318,227   Convertible debentures   –   353,408   Dividend payable   253,064   210,599       8,626,237   7,504,851 Convertible debentures   332,790   415,897 Other long–term debt   3,194,968   3,378,569 Postretirement benefits   830,659   840,311 Other liabilities   741,678   775,975       13,726,332   12,915,603 Minority interest   73,588   61,881 Stockholders´ Equity   17,797,756   14,875,888                   $ 31,597,676   $ 27,853,372

    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 by reflecting cash and investments that could be used to repay debt. Details of Net Debt follow:

          (Stated in millions)             Nine Months   2008     Net Debt, January 1, 2008   $ (1,857 )       Net income     4,285         Depreciation and amortization     1,656         Excess of equity income over dividends received     (178 )       Increase in working capital requirements     (918 )       Capital expenditure (1)     (2,815 )       Dividends paid     (712 )       Proceeds from employee stock plans     272         Stock repurchase program     (1,665 )       Business acquisitions     (345 )       Conversion of debentures     436         Other     39         Translation effect on net debt     67                   Net Debt, Sept. 30, 2008   $ (1,735 )                             Components of Net Debt   Sept. 30, 2008   Dec. 31, 2007 Cash and short–term investments   $ 3,493     $ 3,169   Fixed income investments, held to maturity     511       440   Bank loans and current portion of long–term debt     (2,211 )     (1,318 ) Convertible debentures     (333 )     (769 ) Other long–term debt     (3,195 )     (3,379 )                   $ (1,735 )   $ (1,857 )             (1) Including Multiclient seismic data expenditure.

    Business Review

                              (Stated in millions)