HOUSTON (Jan. 20, 2012)—Schlumberger Limited reported full-year 2011 revenue of $39.54 billion versus $27.45 billion in 2010.
Full-year 2011 income from continuing operations attributable to Schlumberger, excluding charges and credits, was $4.97 billion, representing diluted earnings-per-share of $3.66 versus $2.86 in 2010.
Fourth-Quarter Results:
Fourth-quarter 2011 revenue was $10.97 billion versus $10.23 billion in the third quarter of 2011, and $9.07 billion in the fourth quarter of 2010.
Income from continuing operations attributable to Schlumberger, excluding charges and credits, was $1.49 billion—an increase of 13% sequentially and 28% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.11 versus $0.98 in the previous quarter, and $0.85 in the fourth quarter of 2010.
Schlumberger recorded charges of $0.06 per share in the fourth quarter of 2011 versus $0.02 per share in the previous quarter, and $0.09 per share in the fourth quarter of 2010.
Oilfield Services revenue of $10.30 billion increased 8% sequentially and 21% year-on-year. Pretax segment operating income of $2.17 billion was up 12% sequentially and 28% year-on-year.
Distribution revenue of $685 million decreased 2% sequentially but increased 19% year-on-year. Pretax segment operating income of $26 million declined 14% sequentially but increased 26% year-on-year.
Schlumberger CEO Paal Kibsgaard commented, “Fourth-quarter results showed solid sequential growth driven by stronger activity both on land and offshore for most Technologies, and stronger product sales for completions, software and multiclient seismic. All Areas and Product Groups grew sequentially.
Growth in North America was led by high-technology services in deepwater Gulf of Mexico, where operational performance was extremely solid. Significant multiclient seismic sales were recorded and a second wide-azimuth seismic fleet was mobilized. North America land revenue grew in line with rig count while performance improved through asset deployment and crew efficiency. Pricing momentum in our Wireline and Drilling product lines continued though the trend slowed somewhat versus the prior quarter.
International growth was driven by deepwater and exploration activity, particularly in East and West Africa, and by strong land activity in the Middle East and North Africa. In addition, regional strength was seen for drilling and production technologies in a number of GeoMarkets.
Bidding remained competitive on large tenders for standard technology. We continued to see positive pricing signs for Wireline and Drilling & Measurements driven by our unique technology capability and strong operational performance.
Integration with Smith made further progress during the quarter and revenue synergies in 2011 exceeded our revised targets. The transaction was accretive on an earnings-per-share basis in the quarter and for the full year.
Uncertainty remains over the outlook for 2012 due to the continuing sovereign debt crisis in Europe which places downward pressure on GDP and oil demand forecasts. Natural gas markets are well supplied in North America with gas storage well above five-year highs. In this environment, the thin excess oil supply cushion is expected to support oil prices close to current levels, while global demand for LNG continues to increase. Recent E&P customer spending forecasts also point to higher E&P investment in 2012, particularly in international markets.
Against this backdrop we are planning for growth in 2012, while building the required flexibility into our resource plans. We remain confident that any potential reductions in activity will be short-lived and that our competitive position remains strong, given our presence and strength in the international markets and the balance we have established between reservoir characterization, drilling and production services in our North America offering.”