Summary
Schlumberger (SLB) reported its third quarter 2009 results, showing a significant year-over-year decline in revenue and net income, reflecting the challenging global economic environment and its impact on the oil and gas industry. Total revenue for the quarter was $5.43 billion, down from $7.26 billion in the same period of 2008. Net income attributable to Schlumberger was $787 million, or $0.65 per diluted share, compared to $1.526 billion, or $1.25 per diluted share, in the prior year. Despite the overall downturn, the company's Oilfield Services segment revenue remained flat sequentially, indicating some stabilization. However, the WesternGeco segment experienced a notable sequential and year-over-year decline in revenue and profitability. Management indicated an outlook for continued stabilization of global activity, with potential modest increases in spending for oil exploration, while gas markets remain oversupplied. The company also highlighted its financial position, with approximately $4.9 billion in cash and investments and sufficient liquidity for at least the next twelve months.
Financial Highlights
51 data points| Revenue | $5.43B |
| Cost of Revenue | $4.14B |
| Gross Profit | $1.29B |
| R&D Expenses | $198.00M |
| Operating Income | $2.34B |
| Interest Expense | $54.00M |
| Net Income | $787.00M |
| EPS (Basic) | $0.66 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 1.20B |
| Shares Outstanding (Diluted) | 1.22B |
Key Highlights
- 1Revenue for Q3 2009 decreased 25% year-over-year to $5.43 billion, reflecting a challenging market for oilfield services.
- 2Net income attributable to Schlumberger decreased 48% year-over-year to $787 million ($0.65 diluted EPS) in Q3 2009.
- 3Oilfield Services segment revenue was flat sequentially, showing signs of stabilization, but down 22% year-over-year.
- 4WesternGeco segment revenue declined significantly, down 48% year-over-year and 17% sequentially, indicating continued weakness in seismic services.
- 5The company recorded $207 million in after-tax charges in Q2 2009 related to workforce reductions and postretirement benefits, which impacted year-over-year comparisons.
- 6Schlumberger maintained a strong liquidity position with $4.9 billion in cash and investments and $2.8 billion in available credit facilities as of September 30, 2009.
- 7The company's outlook suggests continued stabilization of global activity with potential modest increases in oil exploration spending, while gas markets remain oversupplied.