What drove the decrease in net income for the second quarter of 2003?

The decrease in net income for the second quarter of 2003 was primarily due to a significant charge of $81 million for debt extinguishment costs related to repurchasing European bonds. Additionally, the company's results included losses from discontinued operations and a year-over-year decline in income from continuing operations before charges.

How did the different business segments perform in terms of revenue?

The Oilfield Services segment showed positive revenue growth, increasing by 9% year-over-year in the second quarter. SchlumbergerSema also reported strong revenue growth of 16%, benefiting from currency fluctuations and increased activity in the UK Public Sector. Conversely, WesternGeco saw a revenue decline of 15% compared to the same period last year.

What significant financial transactions occurred during the quarter?

Schlumberger issued $1.425 billion in convertible debentures and used a substantial portion of the proceeds to repurchase $1.3 billion of its outstanding European bonds. This refinancing is expected to generate annual interest savings.

Are there any notable divestitures or asset sales mentioned?

Yes, the company completed the sale of its NPTest business for $220 million and plans to complete a management buyout of its Verification Systems business. These are reported under 'Discontinued Operations'.

SLB 10-Q Quarterly Report Q2 FY2003 — Revenue, Net Income, EPS

Summary

SLB Limited/NV (SLB) reported a decrease in net income for the second quarter and the first six months of 2003 compared to the same periods in 2002. For the second quarter, net income was $112.1 million, down from $196.0 million in the prior year. For the six-month period, net income was $261.3 million, compared to $368.5 million in 2002. This decline is partly attributable to significant charges, including $81 million for debt extinguishment costs in the second quarter of 2003. Despite lower net income, the company saw revenue growth in its core Oilfield Services segment, which increased by 9% year-over-year for the quarter and 6% for the six months. SchlumbergerSema also showed revenue growth, up 16% for the quarter and 14% for the six months, benefiting from currency fluctuations and increased activity in the UK Public Sector. WesternGeco, however, experienced revenue declines in both periods. The company completed significant financing activities, issuing $1.425 billion in convertible debentures and used proceeds to repurchase $1.3 billion of European bonds, aiming for annual interest savings. The company also continues to divest non-core assets, with the sale of NPTest and plans for the sale of Verification Systems. Investors should monitor the integration of new technologies and the performance of the Oilfield Services segment, as well as the impact of ongoing restructuring and asset sales.

Key Highlights

1Net income for Q2 2003 was $112.1 million, a decrease from $196.0 million in Q2 2002.
2Six-month net income was $261.3 million, down from $368.5 million in the same period of 2002.
3Revenue from Oilfield Services increased 9% year-over-year in Q2 2003.
4SchlumbergerSema revenue grew 16% year-over-year in Q2 2003, aided by currency and UK Public Sector growth.
5WesternGeco experienced revenue declines, down 15% year-over-year in Q2 2003.
6The company issued $1.425 billion in convertible debentures and repurchased $1.3 billion in European bonds.
7Significant charges of $81 million were recorded for debt extinguishment costs in Q2 2003.

SLB LIMITED/NV Quarterly Report for Q2 Ended Jun 30, 2003

Summary

Key Highlights

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