SCHLUMBERGER 1994 FOURTH QUARTER EARNINGS.NEW YORK--(BUSINESS WIRE)--Jan. 25, 1995--Schlumberger Limited reported today that 1994 fourth quarter net income was $155 million and earnings per share were $0.64, representing a 25% increase over the same quarter last year. Operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. was $1.78 billion, 2% above the fourth quarter of 1993, reflecting a 1% revenue increase in Oilfield Services and a 5% growth in Measurement & Systems. Oilfield Services North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. revenue outperformed the 2% increase in rig count. Outside North America, the Oilfield revenue decline was less than the 7% drop in rig count. Results improved significantly at Geco-Prakla Geco-Prakla was a European geophysical service company specializing in seismic surveys for petroleum exploration. History The company started as Geoteam-Computas Ltd. A.S. on December 13, 1972. reflecting operating measures and major cost reductions taken in the previous 12 months, and at Sedco Forex Forex See: Foreign exchange due to higher utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be and improving day rates. Investment in high technology continued at a rapid pace providing a strong base for profitability growth. Measurement & Systems revenue in US dollars was up 5% compared to the fourth quarter of 1993 primarily due to the acquisition of AEG's electricity meter meter, unit of measure meter, abbr. m, fundamental unit of length in the metric system. The meter was originally defined as 1/10,000,000 of the distance between the equator and either pole; however, the original survey was inaccurate and the meter was later business. Strong demand for new products led to continued growth at Automatic Test Equipment, and the economic recovery in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of utilities in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. strongly contributed to increases in water and heat metering sales. Net income for 1994 was $536 million and earnings per share were $2.21, a decline of 8% compared to last year before an extra- extra- word element [L.], outside; beyond the scope of; in addition. extra- or extro- pref. Outside; beyond: extracellular. extra- word element. [L. ordinary item relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc postretirement benefits. Operating revenue of $6.7 billion was in line with last year. Chairman and Chief Executive Officer Euan Baird Baird may refer to: In places:
["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. that characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. 1994. The first quarter continued the downward direction of oil prices, which heavily affected the industry's budgeting process and willingness to start key projects. The rig count outside North America declined 5%, reaching its lowest level in 22 years. This reduction was more deeply felt in key regions such as the Middle East, where the rig count dropped 20%, and the North Sea. Furthermore, politi- cal instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability significantly reduced oil and gas operations in Nigeria Nigeria (nījĭr`ēə), officially Federal Republic of Nigeria, republic (2006 provisional pop. 140,003,542), 356,667 sq mi (923,768 sq km), W Africa. , Algeria Algeria (ăljēr`ēə), Arab. Al Djazair, Fr. Algérie, officially People's Democratic Republic of Algeria, republic (2005 est. pop. , and the former Soviet Union." "In 1995, we look forward to stronger oil industry fundamentals," Baird continued. "Oil demand in 1994 increased by one million barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. , a boost not matched since 1989, and we expect a similar increase in 1995. Furthermore, Schlumberger's overall strong global position makes it particularly well placed to benefit from the continued growth of the world's economies." -0-
CONSOLIDATED STATEMENT OF INCOME
(Stated in thousands except per share amounts)
Fourth Quarter (Unaudited) Twelve Months
For Periods ------------------------- ---------------------
Ended December 31 1994 1993 1994 1993
Revenue
Operating $1,780,750 $1,746,175 $6,696,845 $6,705,466
Interest and
other income 22,291 24,047 83,898 98,801
--------- --------- --------- ---------
1,803,041 1,770,222 6,780,743 6,804,267
Expenses
Cost of goods
sold and services 1,349,326 1,352,136 5,107,889 5,024,596
Research & eng. 107,937 116,732 418,871 450,185
Marketing 67,902 72,421 251,750 285,628
General 84,320 78,471 321,433 311,088
Interest 16,938 15,717 63,328 68,888
Taxes on income 22,032 10,784 81,395 81,119
---------- --------- --------- ---------
1,648,455 1,646,261 6,244,666 6,221,504
Income before cumu-
lative effect of
a change in account-
ing principle 154,586 123,961 536,077 582,763
Postretirement benefits - - - (248,000)
--------- --------- --------- ---------
Net Income $ 154,586 $ 123,961 $ 536,077 $ 334,763
Net Income Per Share:
Before cumulative
effect of a change in
accounting principle $ 0.64 $ 0.51 $ 2.21 $ 2.40
Postretirement benefits - - - (1.03)
------- ------- ------- -------
Net Income Per Share $ 0.64 $ 0.51 $ 2.21 $ 1.37
Average shares outstanding (thousands) 242,787 243,474 243,423 242,672 Depreciation and amort. included in expenses $ 195,215 $ 194,667 $ 776,167 $ 790,169
CONDENSED BALANCE SHEET
(Stated in thousands)
Assets Dec. 31, 1994 Dec. 31, 1993
Current Assets
Cash and short-term investments $ 1,231,893 $ 1,185,635
Other current assets 2,591,858 2,290,533
----------- -----------
3,823,751 3,476,168
Long-term investments,
held to maturity 273,052 356,874
Fixed assets 2,857,490 2,818,948
Excess of investment over net
assets of companies purchased 1,204,690 1,109,050
Other assets 163,116 155,907
----------- -----------
$ 8,322,099 $ 7,916,947
Liabilities & Stockholders' Equity
Current Liabilities
Accounts payable and accrued
liabilities $ 1,704,755 $ 1,722,773
Estimated liability for
taxes on income 301,269 371,929
Bank loans and current portion
of long-term debt 707,241 400,029
Dividend payable 73,389 73,605
----------- -----------
2,786,654 2,568,336
Long-term debt 394,167 446,942
Postretirement benefits 327,282 299,989
Other liabilities 231,042 195,340
----------- -----------
3,739,145 3,510,607
Stockholders' Equity 4,582,954 4,406,340
----------- -----------
$ 8,322,099 $ 7,916,947
BUSINESS REVIEW
(Stated in millions)
Fourth Quarter Twelve Months
--------------------- --------------------
Operating Revenue 1994 1993 % change 1994 1993 % change
--------------------------------------------
Oilfield Services $1,135 $1,128 1% $4,365 $4,338 1%
Measurement & Systems $ 649 $ 619 5% $2,339 $2,370 (1%)
OILFIELD SERVICES
WIRELINE & TESTING
Revenue decreased 4% compared to the fourth quarter of 1993.
Growth continued in North America at 1%. Outside North America,
revenue decreased 6%, slightly less than rig count, as increases
in South America were offset by lower revenues in all other areas.
New technology revenues, expressed as a percentage of total
revenue, grew 38% compared to last quarter.
Modular Early Production Facilities and "fast track" produc-
tion project management continue to be well received by clients,
offering fast returns from fewer wells in a field and the
capability to fully evaluate reserves before the commitment of
significant capital for production facilities.
Universal pressure platform, an innovative approach for
downhole pressure measurements, has become a reference in the
industry. These reservoir pressure acquisition tools, re-
engineered for efficiency and reliability, provide advanced
features that allow our customers to acquire invaluable
information in hostile environments.
MDT(a) Modular Formation Dynamics Tester, DSI(a) Dipole Shear
Sonic Imager, AIT(a) Array Induction Imager Tool and FMI(a) Fullbore
Formation MicroImager are the leading contributors to client
efforts in enhancing their reserve base and planning the
development of new fields more efficiently.
DOWELL
On a comparable basis, revenue increased 2% over the same period
last year.
In North America, revenue was 6% ahead of the fourth quarter
last year, while drilling rigs increased 2%. Stimulation activity,
specifically matrix acidizing, remained strong despite the decline
of natural gas prices which reduced fracturing activity.
Outside North America, revenue decreased 1% compared to last
year, while rig count declined 7%. Activity was strong in Latin
America and the Far East but was offset by a decline in the Middle
East and Africa, which was affected by a temporary shutdown of
activity in Algeria due to civil unrest.
Drilling Fluids revenue was down due to reduced activity in
both Europe and Africa, more than offsetting a significant
improvement in the Far East.
HyPerSTIM(a) Service, the propped fracturing stimulation of
high-permeability wells, increased worldwide by aiding clients in
their quest for maximizing production.
GECO-PRAKLA
Revenue decreased 6% compared to the same period last year, while
improved efficiency led to a significant turnaround in results.
Marine revenue increased 6% compared to last year primarily
due to strong sales of Non-Exclusive Surveys and overall improved
utilization rates. Vessels were redeployed from the North Sea to
the Gulf of Mexico in response to market developments. During the
quarter, the major upgrade began on the GECO Beta and GECO
Searcher to handle 8 plus streamers.
Land revenue declined 11% compared to last year but was up
17% from the previous quarter, with an increasing backlog at the
end of the quarter. Olympus-IMS(a), the new generation field
information management system, was introduced in Germany. Olympus-
IMS improves data management from complex 3D land operations,
which increases crew efficiency.
Data Processing revenue was down 1%. Inversion Services, a
new Data Processing business unit, was formed to focus and provide
momentum for VIVID(a) structural inversion services and to expand
into stratigraphic inversion. These services will provide improved
seismic data to help our clients find reserves in complicated
geologic situations such as sub-salt and subtle stratigraphic
environments.
SEDCO FOREX
Revenue increased 18% over the same quarter last year.
Improvements were recorded in all geographic operating areas, with
the North Sea and West Africa being the strongest.
Average industry-wide rig utilization for the fourth quarter
increased to 69% versus 61% last year, and offshore rig
utilization was 77% versus 81% last year and 75% last quarter. For
the Sedco Forex rig fleet, offshore utilization increased to 90%
in the fourth quarter from 78% last year and 85% in the third
quarter. Sedco Forex land rig utilization increased to 47% versus
43% in the same quarter last year and 38% last quarter.
At the end of the quarter, Sedco Forex purchased the jackup
Sonny Voss, renamed Trident 18. In January, this rig commences a
one year plus options contract in Dubai. At quarter end, the Sedco
Forex rig fleet numbered 74: 40 offshore and 34 land rigs.
ANADRILL
Revenue increased 23% from fourth quarter 1993. Activity growth
was particularly strong in Latin America, the Far East, and West
Africa.
Slim 1(a) MWD services increased 56% from the same quarter last
year. Directional Drilling services grew 38% over a year ago due
to the continued worldwide expansion of the PowerPak(a) steerable
motors fleet, combined with the momentum generated by the 1993
acquisition of Great Land Directional Drilling, Inc.
IDEAL(a) Integrated Drilling Evaluation and Logging system
tools continued to be deployed in new areas. In the Far East, the
GeoSteering(a) instrumented steerable positive displacement motor
tool was introduced in China, and the ISONIC(a) IDEAL sonic-while-
drilling tool, which measures acoustic properties of rock
formations while drilling, was introduced in Thailand. The RAB(a)
Resistivity-at-the-Bit tool produced the industry's first borehole
images while drilling.
GEOQUEST
Revenue grew 7% over the same period a year ago, mainly reflecting
increased Software Products sales and strong Data Services activity.
Software Products revenue increased 16% over last year with
growth in Europe, Latin America, Middle East, and North America,
with strong geophysical application software sales in each region.
Interpretation, well data processing and related data
services revenue was flat but with additional growth in
traditional and non-rig related services in North America and
Middle East.
Information Technology Services, building on expertise in
geoscience applications, data management and computing technology,
continue to become a major part of the GeoQuest product offering
with new sales in Africa, Europe, and Middle East.
During the quarter, GeoQuest released new or enhanced
versions of the IES/IESX(a) interpretation software, GeoViz(a) 3D
geovisualization application, Charisma(a) seismic interpretation
software, including GeoCube(a) 3D seismic volume visualization, and
ASAP(a) Automatic Seismic Area Picker, GeoFrame(a) multiwell petro-
physics, PetroStat(a) and IMap(a) modules, Finder(a) data management
system, RM(a) reservoir modeling software, and StratLog(a) geological
interpretation package.
MEASUREMENT & SYSTEMS
Revenue and orders in US dollars were up 5% and 13%, respectively. In the following discussions, all comparisons refer to national currencies. ELECTRICITY MANAGEMENT Revenue increased 1%, mainly due to the acquisition of AEG's meter business during the quarter. Activity increased in the US due to rising demand for Automatic Meter Reading products; in Austria due to strong exports to the Far East and Eastern Europe; and in Spain and Portugal due to strong utility needs. This more than offset the reduced activity in the UK, Italy, and Canada. France, Latin America, and Asia remained in line. Orders increased 9% above the same quarter last year. WATER MANAGEMENT Revenue increased 18% from the same quarter last year reflecting improved European economic conditions, and strong demand in Mexico related to water utility privatization. In France, small water meter replacement programs continued to be strong, while sales of water and heat meters in Germany were buoyant due to the construction recovery. These positive trends were slightly reduced by the unfavorable economic environment in Italy and by weak demand from Eastern Europe related to financing constraints. In North America, solid growth in the small meter market was partially offset by weaker demand for telephone-based meter communication systems. Orders rose 21%. GAS MANAGEMENT Revenue was up 12% from last year mainly due the solid growth of gas services in France, Italy, and the UK, the latter helped by the acquisition of Maclean & Nuttall, a gas appliance services company. Orders were down 1% as improvements in gas service in the UK and demand for gas meters in Italy and France were more than offset by shortfalls in Germany. ELECTRONIC TRANSACTIONS Revenue was up 8% from the same period last year reflecting strong Retail Petroleum Systems product deliveries in North America, and the acquisitions of Messerschmidt Apparate, a parking products distributor, and Malco, a magnetic stripe card manufacturer. Strong exports of pay phones offset weak banking terminal shipments in Europe. Orders were up 3%. AUTOMATIC TEST EQUIPMENT Revenue grew 3% driven by strong Automated systems sales and Diagnostic systems activity, the latter benefitted from the introduction of a new electron-beam probe. Board systems, including defense-related products and Telecom test, was flat. Component test fell slightly against the exceptionally strong sales level of last year. Orders were up 49% compared to the same period last year including a 44% increase at Component test reflecting the continued success of the ITS 9000(a) family of semiconductor component test systems and a 68% growth at Diagnostic systems.
CHANGE IN LIQUIDITY
A key measure of financial position is liquidity, defined as cash plus short-term and long-term investments less debt. A summary of the major components of the change in liquidity follows:
(Stated in millions)
Twelve Months 1994 1993
Funds provided by:
Net income (1) $ 536 $ 583
Depreciation and amortization 776 790
Funds used for:
Fixed asset additions (783) (691)
Businesses acquired (2) (172) (590)
Purchase of shares for Treasury (148) -
Dividends paid (292) (291)
Working capital and other (209) 232
-----------------------
Change in liquidity (292) 33
Liquidity, beginning of period 696 663
-----------------------
Liquidity, end of period $ 404 $ 696
(1)In 1993, before cumulative effect of a change in accounting principle relating to postretirement benefits. (2)In 1993, purchase of Dow (Direct OverWrite) See magneto-optic disk. Chemical's 50% interest in the Dowell Schlumberger Schlumberger Limited is the world's largest oilfield services corporation operating in approximately 80 countries, with about 70,000 people of 140 nationalities. Schlumberger supplies a wide range of products and services from seismic acquisition and processing; formation group of companies. (a) Mark of Schlumberger CONTACT: Schlumberger Limited, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Simone (language) Simone - A simulation language by A. Hoare et al. based on Pascal. ["Quasiparallel Programming", W.H. Kaubisch et al, Soft Prac & Exp 6:341-356 1976]. Crook, 1-212-350-9432 |
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