Summary
Schlumberger Limited (SLB) reported strong financial performance for the fiscal year 2011, driven by significant revenue growth and improved operational efficiency. The company's strategy to integrate recent acquisitions, particularly Smith International and Geoservices, has broadened its service portfolio and enhanced its market position across all major oilfield service segments: Reservoir Characterization, Drilling, and Reservoir Production. Despite global economic uncertainties and modest oil demand growth, Schlumberger leveraged increased exploration and production (E&P) expenditures by oil and gas companies, particularly in North America's liquids-rich plays and international deepwater areas. The company's proactive approach to technology development and adoption, coupled with strategic acquisitions and operational integration, has positioned it well to capitalize on market opportunities. While facing risks associated with international operations, commodity price volatility, and regulatory changes, Schlumberger demonstrated resilience and growth. The company's robust cash flow generation and commitment to returning value to shareholders through dividends and share repurchases underscore its financial strength and strategic execution.
Financial Highlights
52 data points| Revenue | $36.58B |
| Cost of Revenue | $28.80B |
| Gross Profit | $7.78B |
| R&D Expenses | $1.06B |
| Operating Income | $4.52B |
| Interest Expense | $298.00M |
| Net Income | $5.00B |
| EPS (Basic) | $3.70 |
| EPS (Diluted) | $3.67 |
| Shares Outstanding (Basic) | 1.35B |
| Shares Outstanding (Diluted) | 1.36B |
Key Highlights
- 1Significant revenue growth of 39% year-over-year, reaching $39.5 billion, largely driven by the full-year impact of acquisitions (Smith International and Geoservices) and improved market conditions.
- 2Oilfield Services segment revenue increased by 39% to $37 billion, reflecting broad-based growth across Reservoir Characterization, Drilling, and Reservoir Production groups.
- 3North America region showed substantial growth (82% year-over-year), fueled by increased activity, stronger pricing, and a shift towards liquids-rich plays and deepwater work.
- 4International revenue grew by 24%, supported by strengthening activity in deepwater and exploration basins, along with signs of pricing traction.
- 5The company continued to invest in technology and innovation, with research and engineering expenses increasing in absolute dollars, supporting new product and service introductions.
- 6Shareholder returns were maintained through consistent dividend payments and an active share repurchase program, extending the program through December 31, 2013.
- 7The company's robust balance sheet and cash flow generation provide financial flexibility to navigate market dynamics and pursue strategic growth initiatives.