What was SLB's net income for the first quarter of 2004, and how does it compare to the previous year?

For the first quarter of 2004, SLB reported a net income of $220.3 million, or $0.37 per diluted share. This represents a significant increase compared to the $149.2 million, or $0.26 per diluted share, reported in the first quarter of 2003.

What were the main drivers of SLB's revenue growth in the first quarter of 2004?

The primary drivers of revenue growth were a 15% increase in the Oilfield Services segment to $2.36 billion and strong performance in other segments. This growth was fueled by increased demand in various geo-markets, particularly North America, Latin America, and the Middle East & Asia, supported by technologies like Integrated Project Management and the PowerDrive rotary steerable systems.

Did SLB incur any significant one-time charges during the quarter?

Yes, SLB incurred significant one-time charges totaling $152 million after-tax ($0.25 per share). These included $77 million for debt extinguishment costs, $46 million related to US interest rate swaps, $14 million for a loss on the sale of Atos Origin shares, and $14 million for a US restructuring program.

How did the divestitures of various businesses impact SLB's financial results?

The divestitures of SchlumbergerSema, Infodata, and Telecom Billing Software businesses contributed significantly to the company's net income. These sales resulted in gains totaling $93 million ($0.15 per share) reported under discontinued operations. Proceeds from these sales and the sale of Atos Origin shares also bolstered the company's cash flow and aided in debt reduction.

SLB 10-Q Quarterly Report Q1 FY2004 — Revenue, Net Income, EPS

Summary

SLB LIMITED/NV (SLB) reported a strong first quarter for 2004, with net income of $220.3 million, or $0.37 per diluted share, a significant increase from $149.2 million, or $0.26 per diluted share, in the prior year's quarter. This growth was driven by a combination of robust operating performance in its core Oilfield Services segment and substantial gains from the divestiture of several businesses, including SchlumbergerSema, Infodata, and Telecom Billing Software. The company also benefited from proceeds related to the sale of its stake in Atos Origin. Despite significant one-time charges related to debt extinguishment and interest rate swaps totaling $152 million ($0.25 per share) after-tax, the underlying business demonstrated resilience. Operating revenue increased by 14% year-over-year to $3.02 billion. The Oilfield Services segment, in particular, saw revenue grow by 15% to $2.36 billion, with strong performance across various geo-markets and technologies like Integrated Project Management and the PowerDrive family of rotary steerable systems. WesternGeco also showed modest revenue growth and a significant improvement in profitability. The company's active management of its portfolio, coupled with operational improvements, positions it to navigate the evolving energy market.

Key Highlights

1Net income surged to $220.3 million ($0.37/share) in Q1 2004 from $149.2 million ($0.26/share) in Q1 2003, driven by strong operational performance and significant gains from business divestitures.
2Operating revenue increased by 14% year-over-year to $3.02 billion, with the core Oilfield Services segment up 15% to $2.36 billion.
3The company recognized substantial gains from the sale of SchlumbergerSema ($26 million), Infodata ($50 million), and Telecom Billing Software ($17 million), contributing to a total of $93 million ($0.15/share) from discontinued operations.
4Significant one-time charges totaling $152 million after-tax ($0.25/share) were recorded, including debt extinguishment costs ($77 million) and charges related to US interest rate swaps ($46 million).
5Oilfield Services revenue growth was led by strong performance in North America (up 17%), Latin America (up 32% year-over-year), and Middle East & Asia (up 11%).
6WesternGeco showed a revenue increase of 2% and a substantial improvement in pretax operating income to $34 million from a break-even in the prior year's quarter.
7The company managed its debt effectively, with Net Debt decreasing from $(4,176) million at the end of 2003 to $(2,960) million at the end of Q1 2004, partly due to proceeds from business divestitures and asset sales.

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2004

Summary

Key Highlights

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