10-QPeriod: Q1 FY2001

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2001

Filed April 25, 2001For Securities:SLB

Summary

SLB LIMITED/NV (SLB) reported a strong first quarter for 2001, with net income more than doubling to $235.9 million from $136.2 million in the same period of 2000. This robust performance was primarily driven by a significant surge in the Oilfield Services segment, which saw revenue jump 49% year-over-year, fueled by increased rig counts and improved pricing. The company also successfully integrated new technologies and expanded its operational reach across various geographic areas. While Oilfield Services led the growth, other segments showed mixed performance. Resource Management Services experienced a 5% revenue decline, largely due to divestitures, while Test & Transactions saw a 14% revenue increase, boosted by strong demand in its Cards and eTransactions Solutions businesses, though Semiconductor Solutions faced headwinds. The company also made a significant strategic move by acquiring approximately 20% of Sema plc in March, with plans to consolidate its results starting April 1st, anticipating a substantial addition to its IT services capabilities.

Key Highlights

  • 1Net income surged 73% to $235.9 million in Q1 2001, compared to $136.2 million in Q1 2000.
  • 2Oilfield Services revenue grew significantly by 49% year-over-year, supported by a 30% increase in the worldwide M-I rig count.
  • 3The company acquired approximately 20% of Sema plc in March 2001 for $1 billion, marking a strategic expansion into IT services.
  • 4Test & Transactions revenue increased by 14%, driven by strong performance in its Cards and eTransactions Solutions segments.
  • 5Resource Management Services revenue saw a 5% decrease, primarily attributed to the divestiture of Gas Service businesses in 2000.
  • 6Earnings per share (diluted) increased to $0.41 from $0.24 in the prior year's quarter.
  • 7The company recorded a $25 million in-process R&D charge related to the acquisition of Bull CP8.

Frequently Asked Questions

The primary driver was the significant growth in the Oilfield Services segment, which experienced a 49% increase in revenue compared to the first quarter of 2000. This growth was supported by a 30% rise in the worldwide M-I rig count and improved pricing levels.

Schlumberger acquired a substantial stake (approximately 20%) in Sema plc, an IT services company, for $1 billion in March 2001. This acquisition signals a strategic move to expand the company's presence and offerings in the IT services sector, with its results expected to be consolidated starting April 1, 2001.

Resource Management Services saw a 5% decline in revenue, mainly due to divestitures in the prior year. Test & Transactions revenue grew by 14%, driven by strong performance in its Cards and eTransactions Solutions businesses. However, the Semiconductor Solutions business experienced a 31% revenue decrease due to deteriorating industry conditions.

Yes, the company recorded a $25 million in-process research and development charge in the first quarter of 2001 related to the acquisition of Bull CP8. This charge impacted the Research & Engineering expenses and earnings per share.