What was the most significant strategic event for SLB in 2010?

The most significant strategic event was the acquisition of Smith International, Inc. (Smith) for approximately $9.8 billion on August 27, 2010. This merger was aimed at combining complementary drilling and measurement technologies and expertise to enhance drilling efficiency and wellbore assurance, expanding SLB's overall service and product portfolio.

How did the Deepwater Horizon incident affect SLB's operations?

The Deepwater Horizon incident and the resulting oil spill led to a suspension of drilling activities in the US Gulf of Mexico. While the moratorium was lifted, new regulations and ongoing uncertainty impacted offshore operations, increasing costs and potentially reducing the area of operations. SLB noted that this significantly affected US offshore activity and caused slowdowns globally, although these effects were being absorbed by the fourth quarter of 2010.

What is the company's revenue exposure to international markets?

SLB has significant international exposure. In 2010, non-United States operations accounted for approximately 76% of consolidated revenue. This global presence subjects the company to various risks including political and economic instability, trade restrictions, currency fluctuations, and differing regulatory environments in the approximately 80 countries where it operates.

How is SLB managing its debt and liquidity?

In 2010, SLB assumed $1.8 billion in net debt from the Smith acquisition and acquired Geoservices for cash. The company also repurchased debt and maintained committed debt facilities totaling $6.0 billion, with $3.7 billion available and unused at year-end 2010. Cash flow from operations was robust, providing ample liquidity for ongoing operations and investments.

SLB 10-K FY2010 Annual Report — Revenue, Net Income, EPS

Summary

SLB LIMITED/NV (SLB) filed its 2010 Annual Report on Form 10-K on February 4, 2011. The report highlights a strong recovery in oil demand in 2010, with oil prices ranging between $65-$85 per barrel, although natural gas markets faced oversupply and price pressures. A significant event for SLB in 2010 was the acquisition of Smith International, Inc. for approximately $9.8 billion, which expanded its business segments to five: Schlumberger Oilfield Services, WesternGeco, M-I SWACO, Smith Oilfield, and Distribution. The company emphasizes its role as a leading global supplier of technology, integrated project management, and information solutions to the oil and gas industry. Despite facing challenges such as the Deepwater Horizon incident impacting offshore operations and increased environmental regulations, SLB reported revenue growth driven by strong performance in North America and the Middle East & Asia regions. The integration of Smith International is noted as proceeding smoothly, with identified synergy opportunities contributing to results and anticipated for 2011.

Financial Highlights

54 data points

Beta

Revenue

$26.67B

0.2% Gross Margin

Net Income

$4.27B

0.2% Net Margin

EPS (Diluted)

$3.38

Total Assets

$51.77B

Cash & Equivalents

$1.76B

Free Cash Flow

$2.60B

Financial Statements

Beta

Revenue	$26.67B
Cost of Revenue	$21.10B
Gross Profit	$5.58B
R&D Expenses	$919.00M
Operating Income	$4.25B
Interest Expense	$207.00M
Net Income	$4.27B
EPS (Basic)	$3.41
EPS (Diluted)	$3.38
Shares Outstanding (Basic)	1.25B
Shares Outstanding (Diluted)	1.26B

Key Highlights

1Acquisition of Smith International, Inc. for approximately $9.8 billion in August 2010, significantly expanding the company's offerings and market reach.
2Full-year 2010 revenue increased by 8% compared to 2009, driven by recovery in the North America natural gas market and increased demand for pressure pumping services.
3Operations in 80 countries, with non-United States operations accounting for approximately 76% of consolidated revenue in 2010, exposing the company to geopolitical and economic risks.
4The company's business segments now include Schlumberger Oilfield Services, WesternGeco, M-I SWACO, Smith Oilfield, and Distribution.
5Despite global economic recovery, natural gas markets faced oversupply and price pressure, leading to a shift in North American shale activity towards liquid-rich plays.
6WesternGeco revenue decreased by 6% year-over-year due to lower marine activity and weaker pricing, though multiclient sales provided some offset.
7Schlumberger declared a quarterly dividend of $0.210 in each quarter of 2010, and announced a 19% increase to $0.25 in January 2011.

SLB LIMITED/NV Annual Report, Year Ended Dec 31, 2010

Summary

Financial Highlights

Key Highlights

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