Summary
Schlumberger Limited (SLB) reported its first quarter 2009 results, showing a decline in revenue and net income compared to the same period in the prior year. Revenue for the first quarter of 2009 was $5.99 billion, down from $6.29 billion in Q1 2008. Net income attributable to Schlumberger decreased to $938.46 million ($0.78 per diluted share) from $1.34 billion ($1.09 per diluted share) in the first quarter of 2008. The company's performance reflects the challenging global economic environment and its impact on the oil and gas industry. While the company saw sequential revenue declines in both its Oilfield Services and WesternGeco segments, management noted that the rate of decline at WesternGeco slowed. The company has taken steps to reduce its cost base, including workforce reductions, to align with the lower activity levels and pricing pressures observed in the market. Despite the downturn, Schlumberger maintained a strong liquidity position with approximately $4.6 billion in cash and investments. The company also highlighted its ongoing commitment to capital discipline, with capital expenditures expected to be around $2.6 billion for the full year 2009. The company has temporarily suspended its share repurchase program due to the current economic climate but continues to monitor market conditions.
Financial Highlights
32 data points| Revenue | $6.00B |
| Cost of Revenue | $4.51B |
| Gross Profit | $1.49B |
| R&D Expenses | $190.00M |
| Interest Expense | $55.00M |
| Net Income | $938.00M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 1.20B |
| Shares Outstanding (Diluted) | 1.21B |
Key Highlights
- 1Total revenue for Q1 2009 decreased to $5.99 billion from $6.29 billion in Q1 2008, a 4.6% year-over-year decline.
- 2Net income attributable to Schlumberger declined significantly to $938.46 million in Q1 2009 from $1.34 billion in Q1 2008.
- 3Diluted earnings per share (EPS) decreased to $0.78 in Q1 2009 from $1.09 in Q1 2008.
- 4The Oilfield Services segment revenue was $5.44 billion, a 3% decrease year-over-year, impacted by North America activity and pricing.
- 5The WesternGeco segment revenue was $551 million, an 18% decrease year-over-year, primarily due to reduced Multiclient revenue.
- 6The company reported $550.6 million in cash flow from operating activities for Q1 2009, a significant decrease from $1.13 billion in Q1 2008, partly due to a large pension contribution.
- 7Schlumberger had approximately $4.6 billion in cash and investments on hand as of March 31, 2009, and has suspended its share repurchase program.