Summary
SLB LIMITED/NV (SLB) reported strong financial performance for the nine months ended September 30, 2006, with operating revenue growing to $13.88 billion, a significant increase from $10.29 billion in the prior year period. Net income also saw a substantial rise to $2.58 billion, up from $1.55 billion in the same period of 2005. This growth was driven by robust performance across both its Oilfield Services and WesternGeco segments, fueled by increased customer spending on exploration and production activities, higher rig counts, and the successful integration of acquisitions. The company significantly expanded its operations through the acquisition of the remaining 30% minority interest in WesternGeco for $2.4 billion. This strategic move has consolidated full ownership and is expected to contribute to future growth. Despite increased investments and financing costs related to acquisitions, SLB demonstrated strong operational efficiency and margin expansion across its segments. The company also continued its share repurchase program, indicating a commitment to returning value to shareholders.
Key Highlights
- 1Operating revenue increased by 35% to $13.88 billion for the nine months ended September 30, 2006, compared to $10.29 billion in the prior year.
- 2Net income rose significantly to $2.58 billion from $1.55 billion in the comparable period.
- 3The company completed the acquisition of the remaining 30% minority interest in WesternGeco for $2.4 billion, bringing full ownership.
- 4Oilfield Services revenue grew 34% year-over-year, driven by strong activity in North America and Europe/CIS/West Africa.
- 5WesternGeco revenue increased by 46% year-over-year, primarily due to higher marine fleet utilization and multiclient sales.
- 6Diluted earnings per share from continuing operations improved to $2.09 for the nine months, up from $1.27 in the prior year.
- 7The company repurchased 16.13 million shares in the first nine months of 2006 under its share buy-back program.