Schlumberger Limited (NYSE:SLB) today reported third-quarter 2006
operating revenue of $4.95 billion versus $4.69 billion in the second
quarter of 2006 and $3.70 billion in the third quarter of 2005.
Income from continuing operations, before charges and credits,
reached $1.00 billion--an increase of 11% sequentially and 91%
year-on-year. Earnings-per-share diluted, before charges and credits,
were $0.81 versus $0.73 in the previous quarter and $0.43 in the third
quarter of 2005.
Income from continuing operations, including charges and credits,
was $1.00 billion or $0.81 per-share diluted versus $0.69 in the
previous quarter and $0.44 in the third quarter of 2005.
Oilfield Services revenue of $4.30 billion increased 4%
sequentially and 32% year-on-year. Pretax business segment operating
income of $1.21 billion increased 8% sequentially and 68%
year-on-year.
WesternGeco revenue of $659 million increased 17% sequentially and
51% year-on-year. Pretax business segment operating income of $242
million increased 35% sequentially and 183% year-on-year.
Schlumberger Chairman and CEO Andrew Gould commented, "Continuing
strength in seismic activity and increased demand for drilling
services and well placement technologies were the highlights of the
robust performance in the third quarter. The outstanding results at
WesternGeco, where revenues grew 17% sequentially, were due to
significant strength in multiclient data sales and high marine
utilization. With more than 85% of WesternGeco acquisition activity
now focused on exploration and appraisal operations, the industry's
effort to replace and increase reserves is now clearly underway.
Growth in the quarter was broad based, with significant strength
in Canada following the spring break-up, and on land in the US where
pricing remained strong and pressure-pumping backlogs were unchanged.
These improvements were supported by growth in the Caspian, the North
Sea and the Arabian GeoMarkets. Burgeoning exploration activity in
Vietnam and Eastern Russia added further impetus to these results.
Drilling & Measurements PowerDrive and Scope technologies saw
further growth backed by strong technical and operational performance.
The range of both product lines is unmatched in the industry and their
combination enables increasingly complex well profiles to be drilled.
As a result these services continue to expand their range and reach as
the industry seeks to improve performance and mitigate risk. Other
Schlumberger Technologies that benefited from the quarter's overall
activity pattern included Well Services, Completion Systems and Data &
Consulting Services.
High levels of natural gas storage in North America with
consequent volatility in the price of natural gas have recently begun
to impact activity, particularly in areas of higher-cost coal bed
methane and shallow gas production in Canada. This has not yet
materially impacted our activity, however if the coming winter fails
to stimulate strong natural gas demand there is a growing likelihood
of excess equipment capacity in the pressure pumping business at some
point in 2007. Activity growth elsewhere for both oil and gas will
remain strong as our customers continue to fight decline curves and
bring in new fields."
Other Events
-- As part of the current 40 million-share buy-back program
announced in the first quarter of 2006, Schlumberger
repurchased 8.1 million shares during the quarter for a total
amount of $482 million, at an average price of $59 per share.
Under this buy-back program 11.7 million shares have been
repurchased to date.
-0-
*T
Consolidated Statement of Income
(Stated in thousands except per share amounts)
Third Quarter Nine Months
-------------------------------------------------
For Periods Ended
September 30 2006 2005 2006 2005
----------------------------------------------------------------------
Operating revenue $4,954,818 $3,698,093 $13,880,610 $10,285,836
Interest and other
income(1) (3) 70,699 80,101 199,781 314,874
Expenses
Cost of goods
sold and
services(3) 3,369,573 2,761,591 9,628,650 7,723,760
Research &
engineering (3) 149,538 128,266 449,834 371,121
Marketing 17,632 13,477 49,474 39,319
General &
administrative 109,158 83,920 300,337 248,670
Interest 62,351 50,637 171,616 147,636
----------------------------------------------------------------------
Income from
Continuing
Operations before
taxes and minority
interest 1,317,265 740,303 3,480,480 2,070,204
Taxes on income(3) 317,434 174,953 852,504 474,772
----------------------------------------------------------------------
Income from
Continuing
Operations before
minority interest 999,831 565,350 2,627,976 1,595,432
Minority interest(3) (7) (24,547) (48,741) (56,991)
----------------------------------------------------------------------
Income from
Continuing
Operations 999,824 540,803 2,579,235 1,538,441
Income from
Discontinued
Operations - - - 7,972
----------------------------------------------------------------------
Net Income $999,824 $540,803 $2,579,235 $1,546,413
----------------------------------------------------------------------
Diluted Earnings Per
Share
Income from
Continuing
Operations $0.81 $0.44 $2.09 $1.27
Income from
Discontinued
Operations - - - 0.01
----------- ----------- ------------ ------------
Net Income $0.81 $0.44 $2.09 $1.28
=========== =========== ============ ============
Average shares
outstanding 1,183,683 1,179,640 1,182,795 1,178,596
Average shares
outstanding
assuming dilution 1,243,966 1,231,846 1,243,579 1,228,446
Depreciation &
amortization
included in
expenses(2) $392,765 $337,107 $1,122,410 $992,088
----------------------------------------------------------------------
*T
-0-
*T
1) Includes interest income of:
a. Third quarter 2006 - $25 million (2005 - $27 million)
b. Nine months 2006 - $90 million (2005 - $70 million)
2) Including Multiclient seismic data costs.
3) Charges and credits:
*T
-0-
*T
(Stated in millions except per share amounts)
Diluted
EPS Income
Minority effect Statement
Pretax Tax Interest Net (a) Classification
------- ------ --------- ------- ------- --------------
The second
quarter of
2006
includes:
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
------- ------ --------- ------- -------
$(45.7) $(0.3) $3.2 $(42.8) $(0.03)
------- ------ --------- ------- -------
The first
quarter of
2005
includes:
Gain on sale
of
Montrouge Interest and
facility $145.7 $- $- $145.7 $0.12 other income
Real estate Cost of goods
related sold and
charges (12.1) 0.8 - (11.3) (0.01) services
------- ------ --------- ------- -------
$133.6 $0.8 $- $134.4 $0.11
------- ------ --------- ------- -------
The third
quarter of
2005
includes:
Resolution
of
contingency
- Montrouge Interest and
facility $17.8 $- $- $17.8 $0.01 other income
------- ------ --------- ------- -------
(a) May not add due to rounding
*T
There were no charges or credits in the third quarter of 2006.
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*T
Condensed Balance Sheet
(Stated in thousands)
Assets Sep. 30, 2006 Dec. 31, 2005
----------------------------------------------------------------------
Current Assets
Cash and short-term investments $1,901,219 $3,495,681
Other current assets 6,090,762 5,058,232
----------------------------------------------------------------------
7,991,981 8,553,913
Fixed income investments, held to maturity 94,500 359,750
Fixed assets 5,096,474 4,200,638
Multiclient seismic data 239,914 222,106
Goodwill 4,808,809 2,922,465
Other assets 2,505,189 1,818,620
----------------------------------------------------------------------
$20,736,867 $18,077,492
----------------------------------------------------------------------
Liabilities and Stockholders' Equity
----------------------------------------------------------------------
Current Liabilities
Accounts payable and accrued
liabilities $3,704,368 $3,564,854
Estimated liability for taxes on income 1,155,402 946,723
Bank loans and current portion of long-
term debt 1,234,500 796,578
Dividend payable 148,834 124,733
----------------------------------------------------------------------
6,243,104 5,432,888
Long-term debt 3,930,849 3,591,338
Postretirement benefits 710,673 707,040
Other liabilities 252,780 249,459
----------------------------------------------------------------------
11,137,406 9,980,725
Minority interest - 505,182
Stockholders' Equity 9,599,461 7,591,585
----------------------------------------------------------------------
$20,736,867 $18,077,492
----------------------------------------------------------------------
*T
-0-
*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:
(Stated in millions)
Nine Months 2006
----------------------------------------------------------------------
Net Debt, January 1, 2006 $(532)
Net income 2,579
Depreciation and amortization 1,122
Charges & credits, net of minority interest and tax 43
Excess of equity income over dividends received (121)
US pension and postretirement benefit contributions (225)
Increase in working capital requirements (474)
Capital expenditures(1) (1,741)
Dividends paid (420)
Proceeds from employee stock plans 346
Stock repurchase program (949)
Acquisition of minority interest in WesternGeco (2,406)
Other business acquisitions and related payments (331)
Distribution to joint venture partner (60)
Other 53
Translation effect on net debt (54)
----------
Net Debt, September 30, 2006 $(3,170)
==========
*T
-0-
*T
(Stated in millions)
Components of Net Debt Sep. 30, 2006 Dec. 31, 2005
----------------------------------------------------------------------
Cash and short-term investments $1,901 $3,496
Fixed income investments, held to maturity 95 360
Bank loans and current portion of long-
term debt (1,235) (797)
Long-term debt (3,931) (3,591)
------------- -------------
$(3,170) $(532)
============= =============
1. Including Multiclient seismic data
expenditure.
*T
In addition to financial results determined in accordance with
generally accepted accounting principles (GAAP) this Third-Quarter
Earnings Press Release also includes non-GAAP financial measures (as
defined under SEC Regulation G). The following is a reconciliation of
these non-GAAP measures to the comparable GAAP measures:
-0-
*T
Before charges
Continuing operations GAAP & credits
---------------------------- --------------------------------
Effective tax rate 24.4% 23.4%
Third Quarter 2005
-----------------------------------------
Diluted
Pretax Tax Min Int Net EPS
-----------------------------------------
Income from Continuing
Operations per Consolidated
Statement of Income $740.3 $175.0 $(24.5) $540.8 $0.44
Add back Charges & Credits:
- Resolution of contingency
- Montrouge facility (17.8) - - (17.8) (0.01)
-----------------------------------------
Income from Continuing
Operations before charges &
credits $722.5 $175.0 $(24.5) $523.0 $0.43
=========================================
Before charges
Continuing operations GAAP & credits
---------------------------- --------------------------------
Effective tax rate 23.6% 24.2%
*T
-0-
*T
Business Review
(Stated in millions)
Third Quarter Nine Months
------------------- --------------------
2006 2005 % chg 2006 2005 % chg
------------------- --------------------
Oilfield Services
---------------------------
Operating Revenue $4,299 $3,259 32% $12,138 $9,082 34%
Pretax Operating Income $1,213 $722 68% $3,286 $1,954 68%
WesternGeco
---------------------------
Operating Revenue $659 $436 51% $1,751 $1,197 46%
Pretax Operating Income $242 $85 183% $580 $207 181%
*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 post-retirement benefits,
stock-based compensation costs and the charges and credits described
on page 4, as these items are not allocated to the segments.
Oilfield Services
Third-quarter revenue of $4.30 billion was 4% higher sequentially
and 32% higher year-on-year.
Overall sequential revenue increases were highest in the Canada,
US Land, Arabian and Caspian GeoMarkets. Marked increases were also
experienced in the Eastern Russia and Thailand/Vietnam GeoMarkets.
Demand was particularly strong for Drilling & Measurements, Well
Services, Completion Systems and Data & Consulting Services
technologies.
Pretax operating income increased 8% sequentially and 68%
year-on-year, driven mainly by higher activity in the US Land and
Canada GeoMarkets; strengthening activity in the North Sea, Caspian,
Arabian, Thailand/Vietnam, Indonesia and India GeoMarkets; and a more
favorable mix of activity in Latin America. These factors resulted in
sequential growth of 99 basis points (bps) in pretax operating margins
to reach 28.2%.
Advanced Schlumberger technologies saw continued demand during the
quarter. Since its launch in 2000, the PowerDrive(a) rotary-steerable
system has experienced rapid success, as demonstrated by total footage
drilled and year-on-year increase in reliability, which has doubled
since the end of last year. Continuing this rapid technology uptake,
Schlumberger recently commercialized PowerDrive Xceed(a) 900, which
provides "point-the-bit" rotary steerable capability in hole sizes
ranging from 12 1/4" to 17 1/2". This complements the existing
Xceed(a) 675 "point-the-bit" technology that has been available for
hole sizes from 8 1/2" to 9 7/8" for several years.
In addition, the next-generation Drilling & Measurements Scope(a)
family of logging-while-drilling services, which offer improved
drilling efficiency and enhanced formation evaluation, continues to
gain industry acceptance as customers realize step changes in
well-placement accuracy. Since its launch in late 2004, Scope
technology has been deployed in 20 of our 28 GeoMarkets and is now
utilized by 14 of the top 20 Schlumberger customers.
During the quarter, Schlumberger entered into an agreement with
Cisco Systems and Intel to develop a "first mile" wireless service for
oilfield operations. "First mile" refers to the critical connectivity
of drilling sites or producing fields into a wider network. The
service will help operators better manage drilling and production
operations through an innovative wireless fabric of sensors,
distributed computing networks and service-oriented applications.
North America
Revenue of $1.35 billion increased 6% sequentially and 42%
year-on-year. Pretax operating income of $410 million increased 9%
sequentially and 88% year-on-year.
Sequentially, Canada recorded strong revenue growth from higher
activity following the spring break-up, and growth in US Land resulted
from sustained demand for Well Services, Drilling & Measurements and
Wireline technologies. This was partially offset by slightly reduced
activity in the US Gulf Coast due to operator caution in anticipation
of the hurricane season.
Sequential Area pretax operating margins expanded by 81 bps,
primarily driven by higher operating leverage, sustained pricing
levels and a favorable mix of higher-margin activity in Canada and US
Land. This growth was partially offset by operator caution in the US
Gulf Coast in anticipation of the hurricane season and by reduced
activity in Alaska.
In US Land, a West Texas operator awarded Schlumberger a contract
for advanced lifting services to optimize production on more than 100
wells. The espWatcher(a) surveillance system for electrical
submersible pumps (ESPs) was deployed, allowing surveillance engineers
at the Schlumberger Production Center of Excellence in Oklahoma City
to monitor and analyze flow rates of underperforming wells. Data
acquired by the espWatcher enabled real-time performance diagnosis
resulting in a remedial acid stimulation program that increased
production rates by nearly 30% to reach 580 bbl/d.
Elsewhere in US Land, a South Texas operator deployed the
Schlumberger resistivity-while-drilling service mcrVISION(a) in
combination with the SlimPulse(a) slim MWD tool on their
horizontal-drilling campaign. Designed specifically to enable
retrieval and reconnection without pulling the bottom hole assembly
(BHA) from the well, this tool combination helped mitigate operational
risk by reducing the operator's lost-in-hole costs by 75% when the BHA
became stuck.
In the deepwater Gulf of Mexico, Schlumberger successfully
completed the world's most extensive 3D vertical seismic profile (VSP)
survey for Hess Corporation in their lower Tertiary Pony exploration
well. The well was drilled in 3,497 ft of water and the 3D VSP was
recorded at more than 18,000 ft beneath the sea floor to image the
reservoir below the salt--a key technical challenge. The 3D VSP was
acquired using the 40-shuttle VSI(a) Versatile Seismic Imager tool.
Also in the deepwater Gulf of Mexico, BP extended their contract
for well testing services. The extension awarded Schlumberger the
operations and maintenance of the well test facility permanently
installed onboard the drillship Discoverer Enterprise. The facility
has the capacity to handle production rates up to 18,000 bbl/d or 60
MMcf/d.
Latin America
Revenue of $629 million decreased 6% sequentially but increased
11% year-on-year. Pretax operating income of $130 million increased 1%
sequentially and 41% year-on-year.
Sequentially, revenue declined in the Area as the positive effects
of higher Drilling & Measurements and Wireline activity and stronger
product sales in the Venezuela/Trinidad & Tobago GeoMarket, together
with higher demand for Well Services and Well Testing technologies in
the Peru/Colombia/Ecuador GeoMarket, were unable to counter client
budget-related activity declines in the Mexico GeoMarket. Reduced
drilling activity, coupled with the completion of an IPM project in
the Latin America South GeoMarket also contributed to the overall
revenue decline.
In Venezuela, discussions regarding new contracts for the drilling
barges work and the settlement of certain outstanding receivables had
progressed at the end of the quarter. Pending finalization of these
new contracts, revenue recognition was deferred on certain work
performed during the quarter.
The strong sequential gain in pretax operating margins of 135 bps
was driven by a more favorable activity mix in both the Latin America
South and Venezuela/Trinidad & Tobago GeoMarkets and improved margins
on integrated projects in Mexico, primarily as a result of reduced
levels of lower margin third-party billings.
In Reynosa, Mexico, remote directional drilling operations were
directed simultaneously on five wells from the Operations Support
Center(a), which opened in March of this year, to support the Burgos
IPM development project. With the decision-making process centralized
at the facility, more efficient assignments of personnel improved the
level of operational support and reduced the number of directional
drilling engineers required on site.
Offshore Brazil, the QuickSilver Probe(a) focused sampling
technology successfully collected multiple oil samples from a zone of
medium permeability in a deepwater exploration well for Petrobras. The
laboratory results showed less than 0.2% contamination.
Europe/CIS/Africa
Revenue of $1.27 billion increased 7% sequentially and 34%
year-on-year. Pretax operating income of $335 million increased 14%
sequentially and 67% year-on-year.
Sequential revenue growth in the Area was driven by higher
activity in the Caspian and Eastern Russia GeoMarkets, and strong
demand for higher-margin technologies in the North Sea. Overall growth
in Russia resulted from higher land drilling activity and the seasonal
pick-up in offshore activity in Sakhalin. Sequential growth was
further boosted by higher rig count in Nigeria and pricing gains and
extended Wireline activities in the West and South Africa GeoMarket.
Sequential gains in pretax operating margin of 156 bps resulted
from a more favorable mix of technologies offshore in the Caspian,
pricing and technology gains in the North Sea and stronger returns on
higher-margin offshore activities in the Eastern Russia GeoMarket.
In Sakhalin, Russia, EcoScope(a) multifunction
logging-while-drilling, TeleScope(a) high-speed telemetry and
VISION(a) imaging-while-drilling services enabled faster
rate-of-penetration and acquired high-quality LWD data for Elvary
Neftegaz. The resultant time savings from Scope technology, slimhole
well design, bit performance and reduced non-productive time allowed
the customer to improve drilling performance by 100% from 2005 to 2006
during the four-month weather window.
In the UK sector of the North Sea, Schlumberger was awarded a
contract for ESP systems and associated monitoring and control
services for the first stage of the CNR International (UK) Ltd. Lyell
project. When completed, this artificial lift project will be the
largest subsea deployment of dual ESPs in the North Sea.
On a Shell Aragorn high-pressure, high-temperature exploration
well in the UK sector of the North Sea, Schlumberger deployed a
custom-designed FlexSTONE HT(a) cementing system. Due to the hostile
nature of this well, the mechanical properties of the cement were
optimized to suit the harsh downhole conditions and ensure long-term
zonal isolation.
In Nigeria, Chevron used the PeriScope 15(a) directional deep
electromagnetic imaging-while-drilling service in multiple offshore
wells to identify reservoir thickness, oil-water contact and
sub-seismic faults while drilling. The deployment of this technology
contributed to the addition of three million barrels of recoverable
reserves to the field.
Middle East & Asia
Revenue of $1.02 billion increased 5% sequentially and 32%
year-on-year. Pretax operating income of $332 million increased 3%
sequentially and 47% year-on-year.
The sequential revenue growth resulted from higher rig count and
gas exploration in the Arabian GeoMarket; exploration activity in the
Thailand/Vietnam GeoMarket; increased drilling activity in the
Australia/New Zealand/Papua New Guinea GeoMarket together with higher
artificial lift product sales in the East Mediterranean GeoMarket.
Sequential pretax operating income growth was driven by expansion
of higher-margin Drilling & Measurements Scope and PowerDrive
services, Well Testing activities and Completion Systems product
sales. The growth was attenuated by lower-margin product sales in
China and the end of a deepwater Well Services project in Malaysia.
In China, greater acceptance of Wireline ABC(a) Analysis Behind
Casing technologies continued during the quarter due to an upsurge of
reservoir monitoring operations for PetroChina. Performed initially on
the Huabei oilfield, the ABC campaign has widened to other mature
fields including Daqing, Xinjiang and Qinghai with 53 wells logged by
the end of the quarter. Additionally, PetroChina announced plans to
apply ABC technology to its other fields.
In the Malaysian-Thailand Joint Development Area, the recently
commercialized Isolation Scanner(a) cement evaluation service was run
on two highly deviated wells for Carigali Hess Operating Company Sdn.
Bhd. The Isolation Scanner was deployed with the MaxTRAC(a) downhole
well tractor system and provided a much clearer understanding of the
downhole environment. Isolation Scanner is the latest member of the
deep-reading Scanner Family(a) of characterization measurements.
In Egypt, Schlumberger PowerJet Omega(a) deep-penetrating shaped
charges were used on two re-completion wells for Eshpetco, resulting
in production rates 50% above operator expectations. Deeper
penetration translates into increased well production and improved
well efficiency--directly impacting lifting costs.
WesternGeco
Third-quarter revenue of $659 million was 17% higher sequentially
and 51% higher compared to the same period last year. Pretax operating
income of $242 million improved 35% sequentially and 183%
year-on-year.
The sequential revenue increase was driven by significant
Multiclient sales arising from the E-Dog survey in North America as
well as Multiclient sales in other regions following the seasonal low
of the second quarter. Marine revenue increased through higher pricing
and utilization, which reached 97% during the quarter, with the bulk
of the marine fleet operating in Asia, Europe and North America. Land
revenue declined due to weather-related shutdowns in South America and
the Middle East coupled with the completion of projects in Saudi
Arabia. During the quarter, WesternGeco mobilized a new Q-Land(a) crew
in Libya and relocated the Q-Land crew from Egypt to Qatar following
the completion of projects in the Western Desert. Data Processing
revenue decreased with a reduction in activity in North America where
resources were focused on the processing of multiclient surveys.
Pretax operating margins improved sequentially by 482 bps to reach
36.8%. The higher utilization and improved pricing in Marine drove
strong sequential improvement in pretax operating income. Multiclient
margins increased on higher revenue following the seasonal reduction
in activity during the second quarter. This growth was partially
offset by Land due to lower utilization, while Data Processing
remained flat.
In North America, WesternGeco completed the world's largest and
most complex depth migration project. This 20,250 sq km project named
E-Dog extends over 800 blocks in the deepwater Gulf of Mexico and
dramatically improves the sub-salt imaging in an area that has
historically been technically challenging.
Contracts awarded during the quarter included a two-year extension
of the Q-Marine(a) contract with India's Oil and Natural Gas
Corporation Ltd. to include additional exploration and development
seismic programs, as well as a new contract with Petronas Carigali to
conduct a number of Q-Marine surveys over various fields offshore
Malaysia.
WesternGeco is conducting the first-ever 3D over/under
configuration in the Norwegian sector of the Barents Sea for Statoil
and its partners. This survey design, enabled through the unique
capabilities of Q-Marine, extends the frequency bandwidth to better
image the complex geology.
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 66,000
people of over 140 nationalities working in more than 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 2005, Schlumberger operating revenue was $14.31
billion. For more information, visit www.SLB.com.
(a) Mark of Schlumberger
Notes
Schlumberger will hold a conference call to discuss the above
announcement on Friday, October 20, 2006, 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 +1-888-428-4471 (toll free) for North America, or
+1-612-234-9960 outside of North America, approximately 10 minutes
prior to the scheduled start time. Ask for the "Schlumberger Earnings
Conference Call." A replay will be available through November 3, 2006,
by dialing +1-800-475-6701 in North America, or +1-320-365-3844
outside of North America, and providing the access code 839179.
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 through November 3, 2006 at the
above 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.
