What was the primary driver behind SLB's net loss in the second quarter of 2001?

The primary driver for the net loss of $93.3 million was a significant $280 million impairment charge related to the planned disposition of certain Resource Management Services businesses. Without this charge, the company would have reported a net profit.

How did the acquisition of Sema plc impact the company's financial statements?

The acquisition of Sema plc for $5.15 billion in April 2001 was a major event. It significantly increased assets and liabilities, particularly long-term debt and goodwill on the balance sheet. It also led to the creation of the new SchlumbergerSema business segment, which is now included in the consolidated financial statements.

What is the outlook for the Oilfield Services segment?

The Oilfield Services segment showed strong performance with a 44% year-over-year revenue increase, driven by higher rig counts and improved pricing. Management commentary suggests continued positive momentum, with growth across most services and regions.

What is the company's strategy regarding its Resource Management Services businesses?

The company is planning to divest certain Resource Management Services businesses (Electricity and Water outside North America, and worldwide Gas businesses). This strategic decision led to the substantial impairment charge recorded in the second quarter.

SLB 10-Q Quarterly Report Q2 FY2001 — Revenue, Net Income, EPS

Summary

SLB LIMITED/NV (SLB) reported a net loss of $93.3 million for the second quarter ended June 30, 2001, translating to a loss of $0.16 per diluted share. This performance was significantly impacted by a substantial $280 million impairment charge related to the expected disposition of certain Resource Management Services businesses. Excluding this charge, the company would have posted a net income of $187 million, or $0.32 per diluted share, representing an increase from the prior year's second quarter net income of $156 million. The company saw robust revenue growth, particularly in its Oilfield Services segment, which increased by 44% year-over-year, driven by a 27% rise in the worldwide M-I rig count and improved pricing. The newly formed SchlumbergerSema segment, bolstered by recent acquisitions, also contributed significantly to revenue, though it reported a pretax operating loss for the quarter due to integration costs and sector-specific challenges. The overall financial results reflect a company undergoing significant strategic shifts, including major acquisitions and planned divestitures.

Key Highlights

1Reported a net loss of $93.3 million ($0.16 per diluted share) for Q2 2001, heavily influenced by a $280 million impairment charge.
2Excluding the impairment charge, adjusted net income was $187 million ($0.32 per diluted share), up from $156 million ($0.27 per diluted share) in Q2 2000.
3Oilfield Services revenue surged 44% year-over-year to $2.47 billion, driven by a 27% increase in worldwide rig count and improved pricing.
4The newly formed SchlumbergerSema segment generated $901 million in revenue, including contributions from recent acquisitions of Sema plc and Bull CP8.
5The company completed the acquisition of Sema plc for $5.15 billion in April 2001, significantly impacting its balance sheet and financing activities.
6Cash used in investing activities was substantial at $3.84 billion, primarily due to the Sema acquisition, while financing activities provided $3.69 billion in cash.
7The company plans to divest certain Resource Management Services businesses, contributing to the significant impairment charge recognized in the quarter.

SLB LIMITED/NV Quarterly Report for Q2 Ended Jun 30, 2001

Summary

Key Highlights

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