Schlumberger Announces Fourth Quarter and Full Year 2003 Results.Energy Editors/Business Editors/High-Tech Writers NEW YORK--(BUSINESS WIRE)--Jan. 23, 2004 Schlumberger Limited (NYSE NYSE See: New York Stock Exchange :SLB SLB Solomon Islands (ISO Country code) SLB Schlumberger Ltd. (oil field services firm) SLB Server Load Balancing SLB Sport Lisboa e Benfica (soccer) ) reported today 2003 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. of $13.9 billion versus $13.1 billion in 2002. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , before credits and charges, of $913 million was 32% higher than last year with diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $1.56 versus $1.20 in 2002. Income from continuing operations, including credits and charges, was $473 million representing diluted earnings per share of $0.82. Net income was $383 million or $0.67 per share. Fourth Quarter Results Fourth quarter operating revenue of $3.67 billion was 10% above fourth quarter 2002 and 6% above the prior quarter. Net income from continuing operations before credits and charges was $295 million, 95% above 2002 and 23% above the prior quarter. Diluted earnings per share from continuing operations, excluding credits and charges, of $0.50 increased 92% versus the same period last year and 22% sequentially. Including a net charge of $61 million ($0.10 per share) for the write-down of an investment partially offset by the gain on the sale of a note, the earnings per share from continuing operations was $0.40. Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. recorded a loss of $57 million ($0.10 per share) in the quarter. Net income was $177 million ($0.30 per share). Oilfield Services revenue of $2.31 billion increased 12% versus the same period last year and 3% sequentially. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $420 million grew 48% year-on-year and 5% sequentially. WesternGeco revenue of $308 million was 17% higher sequentially, but 7% lower compared to the same period last year. Pretax operating income of $32 million improved $69 million sequentially, and $26 million year-on-year. SchlumbergerSema revenue improved 12% to $721 million sequentially and 16% year-on-year. Pretax operating income of $31 million increased 86% sequentially and 26% year-on-year. Within Other activities, Cards revenue of $206 million increased 6% versus the same period last year and 2% sequentially, while pretax operating income of $27 million grew 36% year-on-year and 21% sequentially. The following credits and charges were taken in the quarter: -- In August 2001, Schlumberger sold its Oilfield Services worldwide gas compression activity to Hanover Compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve Company (NYSE:HC). The proceeds included 8.7 million shares of Hanover Compressor with a value at closing of $173 million which are restricted from marketability Marketability A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold. marketability The ease with which an investment may be bought and sold in the secondary market. until Aug. 30, 2004, and a $150 million long-term subordinated note maturing Dec. 15, 2005. During the fourth quarter of 2003, Schlumberger sold the note for $177 million realizing an after-tax gain of $20 million. As of Dec. 31, 2003 the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of Schlumberger's investment in Hanover Compressor common stock exceeded the market value. As required by generally accepted accounting principles and SEC regulations, Schlumberger wrote down its investment to fair market value at Dec. 31, 2003. The write-down was $81 million after tax. -- Discontinued operations in the quarter consisted of the parking and mass transit mass transit, public transportation systems designed to move large numbers of passengers. Types and Advantages Mass transit refers to municipal or regional public shared transportation, such as buses, streetcars, and ferries, open to all on a terminals (e-City) activities sold to Apax Partners in October 2003 for $84 million in cash. e-City had nine-month 2003 revenue of $88 million and a pretax operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.3 million. As a consequence of this sale, Schlumberger recorded a loss from discontinued operations of $57.4 million, including a $65 million allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of goodwill. Schlumberger Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Andrew Gould Andrew Gould (December 17, 1946) is chairman and chief executive officer of Schlumberger Limited, a global oilfield services company supplying technology, information solutions and integrated project management. , commented, "The fourth quarter activity continued the trend set earlier in the year, posting sequential gains that contributed to an encouraging year-on-year performance. In particular, Oilfield Services activity was strong in 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. , India, Peru/Colombia/Ecuador, Indonesia, and Mexico driven by new contracts, new technologies, and demand for project management and information solutions services. Further divestitures of non-core assets were made during the quarter. These, together with strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , lowered net debt by $691 million to $4.18 billion at the quarter end in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite unfavorable currency effects that increased European debt by $154 million. The recent acceleration of the global economic recovery has led to several successive upward revisions of oil demand for 2004, particularly in China. Current supplies are likely to be adequate, as existing new projects come on line. However, there is no doubt that any sustained economic recovery and the consequent con·se·quent adj. 1. a. Following as a natural effect, result, or conclusion: tried to prevent an oil spill and the consequent damage to wildlife. b. increase in demand coupled with the acceleration of the underlying rate of decline of the world's aging production base will require higher E&P investment going forward. Current signs are that the customer base is beginning to respond to this need." Notes: -- Following the Atos Origin Atos Origin, SA (Euronext: ATO) is an international IT corporation which operates in 40 countries worldwide, with over 50,000 employees. The corporate headquarters are located in Paris, France and Zaventem, Belgium. shareholder meeting held on Jan. 22, 2004, the closing of the sale of certain SchlumbergerSema businesses is expected at the end of January. The transaction proceeds will consist of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 400 million in cash and a fixed number of 19.3 million of Atos Origin common shares that will represent approximately 29% of the common shares outstanding of Atos Origin. As previously announced and subsequent to closing, Schlumberger expects to reduce its ownership in Atos Origin to 19%.
Schlumberger is retaining the strategic activities of IT
services for the oil & gas industry and the operations that
provide connectivity with the upstream oil and gas business.
These activities are reported under Oilfield Services, the
figures of which are restated for the quarter, the full year,
and prior periods.
-- Additionally, Schlumberger will retain a number of specific SchlumbergerSema businesses, which are in the process of divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). . These include Business Continuity, Infodata, and all software products related to SchlumbergerSema telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. activity. These activities are reported under "Other," the figures of which are also restated.
Consolidated Statement of Income
(Stated in thousands except per share amounts)
Fourth Quarter Twelve Months
For Periods Ended --------------------------------------------------
December 31 2003 2002 2003(6) 2002
----------------------------------------------------------------------
Revenue
Operating $3,670,774 $3,350,412 $13,892,604 $13,117,562
Interest and
other income(1) 68,168 26,138 166,493 139,068
----------------------------------------------------------------------
3,738,942 3,376,550 14,059,097 13,256,630
----------------------------------------------------------------------
Expenses
Cost of goods
sold and
services
(2)(4)(5) 2,911,633 5,804,399 11,419,873 13,525,742
Research &
engineering 138,269 146,284 556,124 595,675
Marketing 92,443 97,173 350,996 353,622
General 165,273 166,067 662,224 640,641
Debt
extinguishment
costs(3) - - 167,801 -
Interest 73,246 91,069 334,336 367,973
----------------------------------------------------------------------
3,380,864 6,304,992 13,491,354 15,483,653
----------------------------------------------------------------------
Income (Loss) from
continuing
operations
before taxes and
minority
interest 358,078 (2,928,442) 567,743 (2,227,023)
Taxes on income(4)
(5)(8) 119,999 95,341 209,386 282,070
----------------------------------------------------------------------
Income (Loss) from
continuing
operations
before minority
interest 238,079 (3,023,783) 358,357 (2,509,093)
Minority interest
(2)(4)(5) (3,600) 94,328 114,200 91,879
----------------------------------------------------------------------
Income (Loss) from
Continuing
Operations 234,479 (2,929,455) 472,557 (2,417,214)
Income (Loss) from
Discontinued
Operations (57,439) 68,116 (89,555) 97,219
----------------------------------------------------------------------
Net Income (Loss) $177,040 $(2,861,339) $383,002 $(2,319,995)
----------------------------------------------------------------------
Diluted Earnings
(Loss) Per Share(a):
Income (Loss)
from Continuing
Operations $0.40 $(5.04) $0.82 $(4.18)
Income (Loss)
from
Discontinued
Operations (0.10) 0.12 (0.15) 0.17
--------- --------- --------- ---------
Net Income
(Loss) $0.30 $(4.92) $0.67 $(4.01)
========= ========= ========= =========
Average shares
outstanding 585,755 581,174 583,904 578,588
Average shares
outstanding
assuming dilution(a) 607,967 581,174 597,057 578,588
(a) There was no dilution of shares in the fourth quarter and twelve
months of 2002 due to the net loss.
Depreciation &
Amortization
included in
expenses(7) $360,537 $385,950 $1,570,851 $1,533,406
----------------------------------------------------------------------
1) Includes interest income of:
-- Fourth quarter 2003 - $14 million (2002 - $13 million)
-- Twelve months 2003 - $52 million (2002 - $69 million)
2) The first quarter of 2002 includes a $29 million charge (pretax $30
million and minority interest credit of $1 million) related to the
financial/economic crisis in Argentina ($0.05 per share -
diluted).
3) Related to the repurchase of European Bonds ($0.14 per share in the
second quarter 2003 and $0.14 per share in the third quarter
2003).
4) The third quarter of 2003 includes a $205 million ($0.34 per share)
Multiclient library impairment charge (pretax $398 million, tax
benefit $106 million and minority interest credit $88 million), a
$38 million ($0.06 per share) vessel impairment charge (pretax $54
million and minority interest credit of $16 million) and a pretax
and after-tax gain of $31 million ($0.05 per share) on the sale of
a rig. In addition, the quarter included a provision for insurance
claims and a release of a prior period business divestiture
reserve, which substantially offset. The fourth quarter of 2003
includes a net $61 million ($0.10 per share - diluted) charge
related to the write-down of an investment (pretax and after tax,
$81 million), which is recorded in Cost of goods sold and
services, partially offset by a $20 million credit (pretax $32
million, tax charge $12 million) related to the gain on the sale
of a note, which is recorded in Interest and other income.
5) In the fourth quarter of 2002, Cost of goods sold and services,
Taxes on income, and Minority interest include the following ($
millions):
Goodwill impairment $2,638
Intangibles impairment 147
SchlumbergerSema severance & other 97
WesternGeco severance & other 117
Multiclient library impairment 184
Other 42
-----
Pretax 3,225
Tax (a) 33
Minority interest (90)
-----
3,168
Gain on sale of drilling rigs (87)
-----
$3,081
-----
(a) Includes deferred tax valuation allowance of $94 million.
6) Reclassified, in part, for comparative purposes.
7) Including Multiclient seismic data costs.
8) The effective tax rate for continuing operations excluding the
charges/credits referred to in notes 1, 2, 3, 4, and 5 above were
as follows:
-- Fourth quarter 2003: 26.6%
-- Fourth quarter 2002: 29.7%
-- Total year 2003: 25.2%
-- Total year 2002: 26.4%
Condensed Consolidated Balance Sheet
(Stated in
thousands)
Assets Dec. 31, 2003 Dec. 31, 2002
----------------------------------------------------------------------
Current Assets
Cash and short-term investments $3,108,973 $1,736,016
Assets held for sale (a) 3,140,153 -
Other current assets 4,049,627 5,449,424
----------------------------------------------------------------------
10,298,753 7,185,440
Fixed income investments, held to
maturity 223,300 407,500
Fixed assets 3,799,711 4,663,756
Multiclient seismic data 505,784 1,018,483
Goodwill 3,284,254 4,229,993
Other assets 1,823,835 1,930,023
----------------------------------------------------------------------
$19,935,637 $19,435,195
----------------------------------------------------------------------
Liabilities and Stockholders' Equity
----------------------------------------------------------------------
Current Liabilities
Accounts payable and accrued
liabilities $3,225,546 $4,580,762
Estimated liability for taxes on
income 807,938 625,058
Bank loans and current portion of
long-term debt 1,411,168 1,135,533
Dividend payable 110,511 109,565
Liabilities held for sale (a) 1,119,880 -
----------------------------------------------------------------------
6,675,043 6,450,918
Long-term debt 6,097,418 6,028,549
Postretirement benefits 614,850 544,456
Other liabilities 254,707 251,607
----------------------------------------------------------------------
13,642,018 13,275,530
Minority interest 398,330 553,527
Stockholders' Equity 5,895,289 5,606,138
----------------------------------------------------------------------
$19,935,637 $19,435,195
(a) Assets and liabilities held for sale represent the gross assets
and liabilities of the SchlumbergerSema businesses to be sold to
Atos Origin.
Net Debt
Net Debt represents gross debt less cash, short-term investments and
fixed income investments, held to maturity. Details of the Net Debt is
as follows:
(Stated in millions)
Qtr. ended Year ended
Dec. 31, 2003 Dec. 31, 2003
----------------------------------------------------------------------
Net Debt, beginning of period $(4,867) $(5,021)
Net income from continuing operations 234 473
Charges 61 440
Depreciation and amortization 361 1,571
Change in working capital 247 (228)
Capital expenditures (355) (1,175)
Dividends paid (110) (437)
Employee stock plans 51 172
Sale of NPTest - 220
Sale of e-City 79 79
Debt extinguishment costs - (168)
Sale of Grant Prideco stock - 106
Sale of Hanover note 177 177
Other 100 76
Translation effect on net debt (154) (461)
------------- -------------
Net Debt, end of period $(4,176) $(4,176)
============= =============
(Stated in millions)
Components of Net Debt Dec. 31, 2003 Dec. 31, 2002
----------------------------------------------------------------------
Cash and short-term investments $3,109 $1,736
Fixed income investments, held to maturity 223 408
Bank loans and current portion of long-term
debt (1,411) (1,136)
Long-term debt (6,097) (6,029)
------------- -------------
$(4,176) $(5,021)
============= =============
Business Review
(Stated in millions) Fourth Quarter Twelve Months
--------------------- -----------------------
2003(2) 2002 %chg 2003(2) 2002(2) %chg
--------------------- -----------------------
Oilfield Services
-----------------------
Operating Revenue $2,313 $2,073 12% $8,823 $8,171 8%
Pretax Operating
Income(1) $420 $283 48% $1,536 $1,278 20%
WesternGeco
-----------------------
Operating Revenue $308 $332 (7)% $1,183 $1,476 (20)%
Pretax Operating
Income(1)(3) $32 $6 412% $(20) $71 -
SchlumbergerSema
-----------------------
Operating Revenue $721 $623 16% $2,677 $2,409 11%
Pretax Operating
Income(1) $31 $25 26% $61 $17 249%
Other(4)
-----------------------
Operating Revenue $409 $377 9% $1,480 $1,334 11%
Pretax Operating
Income(1) $47 $22 109% $109 $18 505%
1) Pretax operating income represents income before taxes and minority
interest, excluding interest income, interest expense and
amortization of intangibles.
2) The fourth quarter of 2003 does not include a net charge of $49
million for the write-down of an investment and the gain on the
sale of a note. The third quarter of 2003 does not include $86
million of debt extinguishment costs and a charge of $421 million
for impairment and other charges/credits. The second quarter of
2003 does not include $81 million of debt extinguishment costs.
The first quarter of 2002 does not include an aggregate $30
million charge related to the financial/economic crisis in
Argentina.
3) The third quarter of 2003 does not include impairment charges of
$398 million for Multiclient library and $54 million for vessels.
The fourth quarter of 2002 does not include an impairment charge
of $184 million for Multiclient library and charges of $117
million for severance and other costs.
4) Principally comprises the Cards and Meters North America
activities. Also included are the Business Continuity, Infodata
and Telecom activities.
Oilfield Services
Revenue of $8.82 billion increased 8% in 2003 versus 2002. North America led with an increase of 14%, followed by 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. and Middle East & Asia, which both increased 9%, and Europe/CIS/West Africa, which was up 4%. Pretax operating income of $1.54 billion in 2003 was 20% higher than in 2002. Fourth quarter revenue of $2.31 billion was 3% higher sequentially and increased 12% year-on-year. The M-I rig count increased 3% sequentially and 23% year-on-year. Pretax operating income of $420 million increased 5% sequentially and 48% year-on-year. Overall sequential revenue growth was strongest in the Gulf Coast, India, Peru/Colombia/Ecuador, Indonesia, and Mexico GeoMarkets. By product, demand was particularly strong for Schlumberger Information Solutions Schlumberger Information Solutions (SIS) functions as an operating unit of the global oil services giant Schlumberger Limited. SIS products consist of software developed by Schlumberger itself, as well as products acquired from GeoQuest (GeoFrame), Iron Mountain (eSearch), Merak (SIS) services, Integrated Project Management, Data & Consulting Services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , Wireline and Drilling & Measurements. The year-on-year revenue growth reflected strong activity across most of the GeoMarkets, but particularly in Mexico, Indonesia and U.S. Land. Most technology segments recorded double-digit increases with record levels being achieved in Drilling & Measurements from introduction of new technologies, and Data & Consulting Services from the award of several contracts for reservoir modeling, field assessments and production optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. projects. North America Revenue of $679 million increased 1% sequentially and 19% year-on-year as the M-I rig count was up 4% sequentially and 36% year-on-year. Pretax operating income of $106 million increased 17% sequentially and 91% year-on-year due mainly to a better geographic mix. Year-on-year, activity remained strong with the US Land, Alaska, and Canada GeoMarkets posting significant increases while the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east showed a more modest gain. New Well Services Well services is a department within a petroleum production company through which matters concerning existing wells are handled. Having a shared well services department for all (or at least multiple) assets operated by a company is seen as advantageous as it allows the pooling of technologies, such as ClearFRAC(a) polymer-free fracturing fluid, and Viscoelastic Adj. 1. viscoelastic - having viscous as well as elastic properties natural philosophy, physics - the science of matter and energy and their interactions; "his favorite subject was physics" Diverting di·vert v. di·vert·ed, di·vert·ing, di·verts v.tr. 1. To turn aside from a course or direction: Traffic was diverted around the scene of the accident. 2. Acid (VDA VDA Vendor Driven Architecture VDA Verband Der Automobilindustrie E.V. (German Automobile Industry Association) VDA Virginia Department for the Aging VDA Ovda, Israel (Airport Code) VDA Visual Data Analysis (a)), an advanced acidizing system, continued to penetrate the market in US Land and Canada. Sequentially, Gulf of Mexico activity increased following the end of the tropical storm tropical storm n. A cyclonic storm having winds ranging from approximately 48 to 121 kilometers (30 to 75 miles) per hour. tropical storm season that had impacted results in the prior quarter, partially offsetting lower activity in US Land due to an early activity reduction by a major customer related to budget restrictions. New measurement-while-drilling (MWD MWD Metropolitan Water District of Southern California MWD Measurement While Drilling (oil drilling) MWD Morgan Stanley Dean Witter (stock symbol) MWD Molecular Weight Distribution MWD Military Working Dog ) and logging-while-drilling (LWD LWD Labor and Workforce Development (State of New Jersey) LWD Logging While Drilling (oil drilling industry) LWD Large Woody Debris LWD Little White Dress LWD Life With Derek ) depth and pressure records for the Gulf of Mexico were set during operations on ChevronTexaco's deepwater Tonga Exploratory Prospect located in Green Canyon Block 727. Drilling & Measurements wellsite engineers delivered continuous real-time surveys that allowed the well trajectory Trajectory The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. to be kept on target during the entire drilling and logging process. Latin America Revenue of $408 million was up 8% sequentially and 15% year-on-year as the M-I rig count increased 3% sequentially and 16% year-on-year. Pretax operating income of $67 million rose 7% sequentially and 32% year-on-year. Activity levels in the Peru/Colombia/Ecuador GeoMarket improved sequentially due to additional rig activity in Ecuador and resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of Camisea operations in Peru, but decreased year-on-year due to the one-off sale of Florena facilities in the prior year. Mexico showed year-on-year and sequential growth from almost all technology segments. Activity in Venezuela was stable both year-on-year and sequentially. Contract wins during the quarter included the Repsol YPF Repsol YPF, S.A., (IBEX-35:REP) is an integrated Spanish oil and gas company with operations in 29 countries, the bulk of its assets are located in Spain and Argentina. The product of a 1999 takeover of Argentine energy firm YPF by the Spanish conglomerate Repsol S.A. D-150 integrated well construction project in Argentina. This project entails the drilling, completion, testing, and tie-in of 150 wells in the Manantiales Behr Field over a two-year period. Europe/CIS/West Africa Revenue of $670 million increased 2% sequentially and 7% year-on-year, as the M-I rig count (excluding Russia) increased 3% sequentially and 1% year-on-year. Pretax operating income of $115 million declined 6% sequentially, but increased 72% year-on-year. Year-on-year increases were recorded in the Caspian and Russia, fueled by Well Completions & Productivity Artificial Lift pump and PhaseWatcher(a) fixed multiphase Mul´ti`phase a. 1. (Elec.) Having many phases; Adj. 1. multiphase - of an electrical system that uses or generates two or more alternating voltages of the same frequency but differing in phase angle well production monitoring equipment, and Well Services fracturing technologies, including ClearFRAC(a), which continued to penetrate the market. However, revenue growth was partially offset by lower exploration activity in the Norwegian sector of the North Sea and an overall decline in activity in Nigeria. Sequentially revenue growth across the region was also partially offset by the lower activity in the U.K. and West & South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . In the North Sea, wellbore instability and geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. uncertainties threatened the success of the BG Group Blake Flank flank (flank) the side of the body between ribs and ilium. flank n. 1. The side of the body between the pelvis or hip and the last rib; the side. 2. development project. The No Drilling Surprises (NDS See eDirectory. NDS - Netware Directory Services ) process from Drilling & Measurements, which combines real-time wellbore stability modeling and geosteering, was implemented in close collaboration with BG, resulting in the successful completion of the F1 well. This has resulted in a global wellbore stability agreement between BG Group and Schlumberger as an important part of the BG well assurance process. The sequential decline in pretax operating income was due to the recognition of gains from the sale of the Langley Lang·ley , Mount A peak, 4,227.9 m (14,026 ft) high, in the Sierra Nevada of southern California. lang·ley n. pl. facilities and rigs in the prior quarter, start-up costs for projects in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , appreciation of local currencies against the U.S. dollar, and a less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. revenue mix. Middle East & Asia Revenue of $538 million increased 1% sequentially and was 13% higher year-on-year, while the M-I rig count increased 1% sequentially and 7% year-on-year. Pretax operating income of $131 million increased 2% sequentially and 13% year-on-year. Strong year-on-year improvements across the region were tempered by reduced rig activity in the Arabian GeoMarket and lower activity in China. The Wireline ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. (a) Analysis Behind Casing suite of services contributed to significantly improved results sequentially and year-on-year in Indonesia, where the Slim Cased Hole Resistivity resistivity Electrical resistance of a conductor of unit cross-sectional area and unit length. The resistivity of a conductor depends on its composition and its temperature. Tool, which extends the range of service and can be operated through tubing, was introduced, and the Cased Hole Drilling Tool was used to obtain formation pressures in a complex wellbore environment. Sequential increases were posted throughout by Integrated Project Management and SIS, but were partially offset by a decline in Well Completions & Productivity due to the artificial lift pump delivery in the prior quarter. During the quarter, Kuwait Oil Company (KOC KOC Knights of Columbus KOC Kings of Chaos (gaming) KOC Kuwait Oil Company KoC Knights of Cydonia (Muse song) KOC Kiss on the Cheek KOC Kuwait Olympic Committee KOC Kids of Cracatau ) chose Schlumberger to build and support the first 3D Visual Reality center in Kuwait. The contract includes full time IT support together with Schlumberger experts in software and domain science working alongside KOC multidisciplinary mul·ti·dis·ci·pli·nar·y adj. Of, relating to, or making use of several disciplines at once: a multidisciplinary approach to teaching. teams for improved decision-making. Highlights -- espWatcher(a), a service for remote real-time surveillance and control for electric submersible pumps A submersible pump is a pump which has a hermetically sealed motor close-coupled to the pump body. The whole assembly is submerged in the fluid to be pumped. The advantage of this type of pump is that it can provide a significant lifting force as it does not rely on external air , continued successful introduction this quarter. In total, over 600 wells were connected in 2003 worldwide, making this the largest number of wells monitored with a centralized system In telecommunications, a centralized system is one in which most communications are routed through one or more major central hubs. Such a system allows certain functions to be concentrated in the system's hubs, freeing up resources in the peripheral units. of this type. Once online, pumps can be monitored to maximize well performance, reducing workovers and enabling a step change in production and lift system performance with lower operating costs operating costs npl → gastos mpl operacionales for producing assets. -- MRX MRX Mission Rehearsal Exercise (US DoD) MRX Mental Retardation, X-Linked MRX Magneto-Resistive Extended MRX Magnetic Resonance, Soft Spectrum Coupled X-Ray Laser (a) Magnetic Resonance magnetic resonance, in physics and chemistry, phenomenon produced by simultaneously applying a steady magnetic field and electromagnetic radiation (usually radio waves) to a sample of atoms and then adjusting the frequency of the radiation and the strength of the eXpert, the leading Wireline magnetic resonance tool, was commercialized in the quarter to wide industry acceptance. Operations were run in multiple locations, including Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. , Egypt and Gulf of Mexico.Customer demand for this service has grown rapidly due to improved fluid characterization A rather long and fancy word for analyzing a system or process and measuring its "characteristics." For example, a Web characterization would yield the number of current sites on the Web, types of sites, annual growth, etc. . -- Well Services introduced LiteCRETE(a) Coalbed Methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. (CBM CBM Commodore Business Machines CBM Coalbed Methane CBM Christoffel Blindenmission CBM Condition Based Maintenance CBM Confidence-Building Measures CBM Curriculum Based Measurement (education) CBM Cubic Meter ) slurry slurry, n a thin mixture of insoluble material floating in liquid. slurry solids in suspension. Used as a method of feeding pigs—slurry is pumped through fixed lines and delivered to troughs by hoses equipped with gasoline pump fittings. system, a technology specifically designed for cementing coalbed methane wells that exerts lower pressure on the coalbed to prevent breakdown and inhibit inhibit /in·hib·it/ (in-hib´it) to retard, arrest, or restrain. in·hib·it v. 1. To hold back; restrain. 2. cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. flow into factures and fissures. In the U.S., one large coalbed methane operator saw cementing success rise from 40% to 75% when using LiteCRETE. -- The growing family of PowerDrive(a) rotary steerable systems A rotary steerable system is a new form of drilling technology used in directional drilling. It employs the use of specialized downhole equipment to replace conventional directional tools such as mud motors. (RSS (Really Simple Syndication) A syndication format that was developed by Netscape in 1999 and became very popular for aggregating updates to blogs and the news sites. RSS has also stood for "Rich Site Summary" and "RDF Site Summary. ) continues to penetrate markets while realizing record-breaking performance. In Norway, a record 2,784 meters were drilled on Norsk Hydro Norsk Hydro ASA (OSE: NHY, NYSE: NHY) is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. Njord field in one run. Operators continue to see reduced drilling time, improved wellbore quality, and lower well construction costs. -- SIS announced a set of digital, auditable software reports, which are compliant with the new disclosure regulations for publicly traded upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger oil and gas companies in Canada. These reports work seamlessly with the SIS Merak VOLTS VOLTS Video Online Lottery Terminators Society VOLTS Volunteer Training and Support Program (Macomb, IL) (a) reserve management and reporting system, to help reduce errors, speed up processing, and facilitate Canadian securities reporting.
WesternGeco
Operating revenue for 2003 was $1.18 billion versus $1.48 billion in 2002, reflecting a 20% decrease year-on-year. This was primarily due to lower land crew activity following the exiting of the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Land market combined with the completion of some contracts in the Middle East and lower Multiclient sales in North & South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . Pretax operating loss in 2003 was $20 million versus a profit of $71 million in 2002. Fourth quarter revenue of $308 million was 17% higher sequentially, but 7% lower compared to the same period last year. Sequential growth was primarily impacted by a return to traditional fourth quarter seasonal Multiclient revenue levels. Data Processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a revenue also increased sequentially, mainly in North America, while a slight increase in Land in Mexico and Europe was offset by lower activity in the Middle East. Marine revenue decreased due to the seasonal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the North Sea, completion of projects in the Middle East, and vessel transits. This was partially mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the completion of a Q(a) project for a large independent in West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. , and expanded operations in North & South America. The year-on-year decline was mainly due to the reduction of Land, which was down 23% although revenue per crew was maintained. Multiclient revenue was 7% lower due to a historically low third quarter in North America. Marine and Data Processing business lines both showed slight increases. Pretax operating income of $32 million improved by $69 million sequentially and $26 million year-on-year. Sequential improvement was mainly in Multiclient due to the combination of increased sales and lower amortization costs, and the release of about $10 million of business related contingency contingency n. an event that might not occur. reserves/accruals, partially offset by seasonally lower Marine activity. The year-on-year increase reflected the impact of contractual losses in Marine in India and Land in Mexico during the same period the previous year. Including Multiclient pre-commitments, the backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at the end of the quarter reached $408 million, a 22.5% increase over the previous quarter, reflecting the award of a number of Land contracts in the Middle East and a material Multiclient volume agreement signed in December 2003. Highlights -- Q(a) acceptance continued to grow during the fourth quarter, and contract wins included a Q-Marine(a) contract for a major client in the Gulf of Mexico, as well as an integrated project for Kuwait Oil Company that includes Q-Land(a) acquisition, processing and interpretation. Q(a) revenue approximately doubled year-on-year. -- WesternGeco signed a long-term business agreement with a major energy company that included the licensing of part of the WesternGeco data library, as well as joint R&D and training on new technology for seismic data processing.
SchlumbergerSema
The results for SchlumbergerSema are limited to the businesses being sold to Atos Origin. The retained businesses are reported in Oilfield Services for IT services for the oil & gas industry and network and infrastructure services for the upstream oil and gas sector, and in Other for Business Continuity, Infodata, and all software products related to the SchlumbergerSema telecommunications activity. Revenue of $2.68 billion in 2003 was 11% higher than in 2002. The increase was mainly due to the strengthening of European currencies against the U.S. dollar with a positive impact of $274 million. Pretax operating income of $61 million increased $44 million over 2002 reflecting mainly the benefits of cost reduction programs carried out in North & South America, Asia, the U.K. and Sweden coupled with an improvement in gross margins in Asia and Brazil. These increases were partially offset by declining prices in France, and lower activity in Germany. Revenue of $721 million in the fourth quarter was 16% higher year-on-year and 12% higher sequentially. The improvement on prior year is mainly due to the strengthening of the European currencies against the U.S. dollar, with a positive impact of 12% year-on-year. Sequentially, excluding the positive impact of exchange rates of 4%, revenue increased following the seasonally low revenue in the third quarter due to vacations in Europe. Pretax operating income of $31 million increased 26% year-on-year and 86% sequentially. The improvement on prior year is mainly due to the benefit of cost reduction programs carried on throughout the year, principally in North & South America, Asia, and Sweden, partially offset by continued pricing pressures in France. Sequential growth is consistent with increased revenues following the seasonal effects of vacations in the third quarter, and increased customer spending in the fourth. Europe, Middle East & Africa Revenue of $602 million increased 9% year-on-year and 17% sequentially. The increase year-on-year was due to the strengthening of the European currencies against the U.S. dollar, with a positive impact of $73 million, coupled with stronger activity in the U.K. for the Public Sector. This was partially offset by overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. in France leading to further pricing pressure. The sequential increase was mainly a result of the seasonal and currency effects noted above combined with increased activity in the Public Sector in the U.K. Pretax operating income of $20 million decreased $29 million year-on-year, but increased $10 million sequentially. The year-on-year decline was mainly due to lower margins in France and Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. , partially offset by improvements in Sweden from the cost-cutting programs implemented during the year, and the African Games contract that started in the second quarter of 2003. The sequential improvement was a result of higher Consulting & Systems Integration utilization in France, and a general seasonal increase in activity in Spain and Italy. North & South America Revenue of $86 million increased 16% year-on-year, but decreased 5% sequentially. The year-on-year improvement was partially due to new contract wins with Lee County and Sprint, partially offset by a decline in activity in Consulting & Systems Integration. The sequential decline was mainly due to the energy segment in the U.S., partially offset by new contracts in Mexico and Brazil in the Telecom segment. Pretax operating income of $1 million increased $15 million from a loss of $14 million last year, but decreased $3 million sequentially. The year-on-year increase was a result of the cost reduction program in North America and improved margins in Brazil and Mexico. The sequential decline was a direct consequence of the lower activity base. Asia Revenue of $36 million decreased 12% year-on-year but increased 2% sequentially. The year-on-year decrease was mainly due to lower activity in India. The sequential improvement resulted mainly from higher activity in Malaysia. Pretax operating income of $8 million increased $7 million year-on-year, but showed a $1 million decrease sequentially. The year-on-year growth reflected improved gross margins and indirect cost savings.
Other
Cards revenue for 2003 was $717 million versus $658 million in 2002. Cards fourth quarter revenue of $206 million was up 2% sequentially and 6% year-on-year. Pretax operating income of $27 million increased 21% sequentially and 36% year-on-year. Sequentially, mobile communication card activity improved 12%, of which 3% was due to the strengthening of European currencies against the U.S. dollar. The increase was mainly in Europe due to strong demand coupled with a shift toward high-end products, which led to a pricing increase, and in North & South America, partially offset by lower demand in Asia. Electricity Meters North America revenue of $78 million increased 13% year-on-year, while pretax operating income was $21 million compared to $9 million for the same period last year. About Schlumberger Schlumberger is a global oilfield and information services See Information Systems. company with major activity in the energy industry. The company employs 78,000 people of more than 140 nationalities working in 100 countries and comprises three primary business segments. Schlumberger Oilfield Services Schlumberger Oilfield Services, a division of Schlumberger Limited, is the world’s largest supplier of exploration and production (E&P) services, solutions and technology to the international petroleum industry. is the world's premier oilfield services company supplying a wide range of technology services and solutions to the international oil and gas industry. WesternGeco, jointly owned with Baker Hughes Baker Hughes NYSE: BHI is the world's third-largest oilfield services company behind Schlumberger & Halliburton, its main competitors. Baker Hughes provides the world's oil & gas industry with products and services for drilling, formation evaluation, completion and production. , is the world's largest and most advanced surface seismic company. SchlumbergerSema is a leading supplier of IT consulting, systems integration, and network and infrastructure services. In 2003, Schlumberger operating revenue was $13.9 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, Jan. 23, 2004, at 9:00 a.m. 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 City time (2:00 p.m. London time/3:00 p.m. Paris time). To access the conference call, attendees should contact the conference call operator at +1-888-428-4480 within North America or +1-612-288-0318 outside of North America approximately 10 minutes prior to the call's start time, and ask for the "Schlumberger Earnings Conference Call." A replay of the conference call will be available until Feb. 6, 2004, and can be accessed by dialing +1-800-475-6701 within North America or +1-320-365-3844 outside of North America, and giving the access code 715631. A live webcast of the conference call will be simultaneously broadcast at www.slb.com/irwebcast on a listen-only basis. Attendees should log-in 15 minutes ahead of time to test their browsers and register for the webcast. Following the event, a replay will be available at the same URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. until Feb. 6, 2004. -- Supplemental information in the form of a question and answer document on this press release is available at www.slb.com/ir. |
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