Summary
Schlumberger Limited (SLB) reported a significant increase in revenue for the second quarter of 2010, reaching $5.94 billion, up from $5.53 billion in the same period of 2009. This growth was primarily driven by the Oilfield Services segment, which saw a 10% revenue increase year-over-year, benefiting from improved activity and pricing in North America, particularly in the US Land GeoMarket. Net income attributable to Schlumberger also saw a substantial rise to $818 million from $613 million in Q2 2009. The company also completed the acquisition of Geoservices for approximately $915 million in April 2010, adding to its service portfolio. The company is actively navigating the post-recessionary environment, with a cautious outlook for the remainder of 2010, anticipating a slow build of activity. The ongoing merger with Smith International, Inc. remains a key development, with an expected closing date of August 27, 2010. While revenue and profitability are improving, the company is also addressing strategic initiatives such as the "Excellence in Execution" program and managing the impact of the US Gulf of Mexico drilling moratorium, which is expected to reduce earnings per share by $0.08 to $0.12 in the second half of the year.
Financial Highlights
53 data points| Revenue | $5.94B |
| Cost of Revenue | $4.58B |
| Gross Profit | $1.36B |
| R&D Expenses | $216.00M |
| Operating Income | $1.49B |
| Interest Expense | $53.00M |
| Net Income | $818.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 1.19B |
| Shares Outstanding (Diluted) | 1.21B |
Key Highlights
- 1Revenue increased to $5.94 billion in Q2 2010 from $5.53 billion in Q2 2009, driven by a 10% rise in Oilfield Services revenue.
- 2Net income attributable to Schlumberger rose significantly to $818 million in Q2 2010, up from $613 million in Q2 2009.
- 3The company completed the acquisition of Geoservices for approximately $915 million in April 2010, expanding its service offerings.
- 4Diluted earnings per share improved to $0.68 in Q2 2010 from $0.51 in Q2 2009.
- 5The merger agreement with Smith International, Inc. was approved, with an expected closing date of August 27, 2010.
- 6The US Gulf of Mexico drilling moratorium is expected to reduce EPS by $0.08 to $0.12 in the second half of 2010.
- 7Cash flow from operating activities was $2.3 billion for the first six months of 2010, an increase from $2.1 billion in the same period of 2009.