Summary
SLB LIMITED/NV (SLB) reported robust financial performance for the first quarter of 2006, with a significant increase in operating revenue and net income compared to the prior year. Operating revenue surged by 34% to $4.24 billion, driven by strong growth in both the Oilfield Services and WesternGeco segments. Net income attributable to shareholders reached $722.5 million, a substantial increase from $523.4 million in the first quarter of 2005, with diluted earnings per share growing to $0.59 from $0.43. The company demonstrated operational efficiency and pricing power, particularly in its Oilfield Services segment, which saw a 70% increase in pretax segment income. WesternGeco also experienced significant growth, with revenue up 40% and pretax segment income rising by 149%. These results reflect strong demand for the company's services and technologies in the global oil and gas exploration and production market.
Key Highlights
- 1Operating revenue increased by 34% to $4.24 billion for Q1 2006 compared to $3.16 billion in Q1 2005.
- 2Net income rose significantly to $722.5 million ($0.59 per diluted share) from $523.4 million ($0.43 per diluted share) in the prior year's quarter.
- 3Oilfield Services segment revenue grew 34% year-over-year, with pretax segment income up 70%.
- 4WesternGeco segment revenue increased by 40% year-over-year, with pretax segment income surging by 149%.
- 5The company continues to invest in its business, with capital expenditures of $466.9 million in Q1 2006.
- 6Schlumberger repurchased approximately 2.2 million shares in Q1 2006 under its buy-back program.
- 7The company announced a significant acquisition of Baker Hughes' 30% minority interest in WesternGeco for $2.4 billion, signaling strategic expansion.