Summary
SLB LIMITED/NV (SLB) reported its first-quarter 2003 financial results, showing a slight decrease in net income compared to the same period in 2002. Revenue increased marginally year-over-year, driven primarily by the Oilfield Services segment, which saw a 4% increase in revenue. However, this was partially offset by a significant decline in WesternGeco's revenue (down 20%) and a smaller increase in SchlumbergerSema's revenue (up 12%). Profitability was impacted by several factors, including charges related to restructuring and a less favorable tax rate. Diluted earnings per share for continuing operations stood at $0.26, down from $0.30 in the prior year. Despite the challenging revenue environment in some segments, the company generated positive cash flow from operations, though it was significantly lower than the prior year. Management's discussion highlights ongoing efforts to manage costs and adapt to market conditions, particularly noting challenges in Venezuela and the lingering effects of the Argentine crisis.
Key Highlights
- 1Net income for the first quarter of 2003 was $149 million, a decrease from $172 million in the first quarter of 2002.
- 2Total revenue for the quarter was $3.34 billion, a modest increase from $3.29 billion in the prior year.
- 3Diluted earnings per share from continuing operations decreased to $0.26 from $0.30 in the same period last year.
- 4Oilfield Services revenue grew 4% year-over-year to $1.98 billion, showing resilience.
- 5WesternGeco experienced a significant revenue decline of 20% year-over-year, reaching $307 million.
- 6SchlumbergerSema's revenue increased by 12% to $793 million, driven by European currency strength and e-government projects.
- 7Cash provided by operating activities was $91 million, a substantial decrease from $282 million in the prior year.