Summary
Schlumberger Limited (SLB) reported robust revenue growth of 17% in 2008, reaching $27.2 billion, driven primarily by its Oilfield Services segment, which saw a 20% increase. Despite strong performance throughout most of the year, the fourth quarter was impacted by the global economic downturn, leading to a sequential decline in revenue and downward pressure on service pricing. The company's international operations continue to be a significant revenue driver, accounting for approximately 78% of total revenue. While Oilfield Services demonstrated resilience, the WesternGeco segment experienced a 4% revenue decline due to lower multiclient sales and reduced land activity. However, WesternGeco's backlog reached a record $1.8 billion, indicating future potential. The company maintained a strong financial position with significant cash reserves and managed its debt effectively. Looking ahead to 2009, Schlumberger anticipates a challenging environment with weakening activity across the board, particularly in North American gas drilling and mature offshore basins, prompting proactive cost adjustments while preserving long-term R&D commitments.
Financial Highlights
53 data points| Revenue | $27.16B |
| Cost of Revenue | $18.96B |
| Gross Profit | $8.21B |
| R&D Expenses | $819.00M |
| Operating Income | $5.40B |
| Interest Expense | $247.00M |
| Net Income | $5.43B |
| EPS (Basic) | $4.54 |
| EPS (Diluted) | $4.45 |
| Shares Outstanding (Basic) | 1.20B |
| Shares Outstanding (Diluted) | 1.22B |
Key Highlights
- 12008 total revenue increased by 17% to $27.2 billion, driven by strong Oilfield Services performance.
- 2Oilfield Services revenue grew 20% year-over-year, with notable strength in international markets, although Q4 saw sequential declines due to the economic downturn.
- 3WesternGeco revenue decreased by 4% in 2008, but its backlog ended the year at a record $1.8 billion.
- 4The company operated in approximately 80 countries, with 78% of its 2008 revenue generated from international operations.
- 5Significant share repurchases continued in 2008, with $1.8 billion spent as part of an $8 billion program.
- 6Schlumberger expects challenging market conditions in 2009, with anticipated reductions in exploration and production expenditures by customers.
- 7The company ended 2008 with $3.7 billion in cash and short-term investments, maintaining a strong liquidity position.