Summary
SLB LIMITED/NV (SLB) reported its financial results for the third quarter and the first nine months ended September 30, 2011. The company demonstrated robust revenue growth, driven by strong performance across its Oilfield Services segments, particularly in North America and internationally. This growth was significantly bolstered by the recent acquisitions of Smith International and Geoservices. Profitability also saw improvement, with pretax operating income and margins increasing, reflecting higher activity levels, improved pricing, and operational efficiencies. Despite global economic uncertainties, SLB maintained a positive outlook, emphasizing the continued need for oil and gas reserves and its diversified technological offerings. The company also continued its capital allocation strategies, including share repurchases and debt management, while maintaining a strong liquidity position.
Financial Highlights
52 data points| Revenue | $9.55B |
| Cost of Revenue | $7.44B |
| Gross Profit | $2.10B |
| R&D Expenses | $266.00M |
| Operating Income | $3.32B |
| Interest Expense | $70.00M |
| Net Income | $1.30B |
| EPS (Basic) | $0.97 |
| EPS (Diluted) | $0.96 |
| Shares Outstanding (Basic) | 1.34B |
| Shares Outstanding (Diluted) | 1.36B |
Key Highlights
- 1Revenue increased by 44% year-over-year in the third quarter of 2011 to $10.23 billion, primarily due to the acquisition of Smith and increased activity in North America and internationally.
- 2Pretax operating margin for Oilfield Services improved by 190 basis points to 20.2% in Q3 2011 compared to the prior year, driven by strong performance in Well Services, higher-margin exploration activities, and improvements at WesternGeco.
- 3Net income attributable to Schlumberger for the third quarter was $1.301 billion, or $0.97 per diluted share, compared to $1.734 billion, or $1.38 per diluted share, in the same period of 2010.
- 4For the nine months ended September 30, 2011, revenue reached $28.57 billion, a 47% increase year-over-year, driven by acquisitions and improved global activity.
- 5The company actively managed its balance sheet, issuing new debt while also repurchasing existing notes and continuing its share repurchase program.
- 6SLB's cash flow from operations was strong, providing $3.74 billion in the first nine months of 2011, up from $3.10 billion in the prior year.
- 7The company continues to invest in capital expenditures, with $2.76 billion spent in the first nine months of 2011, an increase from $1.91 billion in the same period of 2010, indicating ongoing investment in future growth.