10-QPeriod: Q3 FY2012

SLB LIMITED/NV Quarterly Report for Q3 Ended Sep 30, 2012

Filed October 24, 2012For Securities:SLB

Summary

Schlumberger Limited (SLB) reported a strong third quarter and nine-month performance for 2012, showcasing revenue growth driven primarily by robust international activity. For the third quarter, revenue increased by 11% year-over-year to $10.6 billion, and net income rose to $1.427 billion. The nine-month period also saw significant growth, with revenue up 16% to $30.97 billion and net income reaching $4.147 billion. The company's performance was bolstered by strong contributions from its international operations, particularly in the Europe/CIS/Africa and Middle East & Asia regions, where exploration and development activities remained high. While North America revenue experienced a slight year-over-year decline, this was largely attributed to weakness in the hydraulic fracturing market, a trend that also impacted sequential profitability in that region. Despite regional challenges, Schlumberger's diversified business and strong operational execution across its Reservoir Characterization, Drilling, and Production segments position it well in the evolving energy landscape.

Financial Statements
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Key Highlights

  • 1Revenue for the third quarter of 2012 was $10.608 billion, an 11% increase compared to $9.546 billion in the third quarter of 2011.
  • 2Net income for the third quarter of 2012 was $1.427 billion, up from $1.305 billion in the same period last year.
  • 3Earnings per diluted share for the third quarter of 2012 were $1.07, an increase from $0.96 in the third quarter of 2011.
  • 4The company reported significant international revenue growth, with Europe/CIS/Africa up 21% and Middle East & Asia up 17% year-over-year for the third quarter.
  • 5Despite overall strong performance, North America revenue saw a slight decrease of 1% year-over-year for the third quarter, impacted by the hydraulic fracturing market.
  • 6The company repurchased approximately $972 million of its stock in the nine months ended September 30, 2012, under its ongoing share repurchase program.
  • 7Schlumberger divested its Wilson distribution business and sold its interest in CE Franklin Ltd. during the second and third quarters of 2012, respectively, classifying these as discontinued operations.

Frequently Asked Questions

The primary driver of Schlumberger's revenue growth in the third quarter of 2012 was robust international activity. The Europe/CIS/Africa and Middle East & Asia regions showed significant year-over-year increases in revenue, driven by strong exploration and development activities.

North America revenue experienced a slight year-over-year decline of 1% in the third quarter of 2012. This was largely due to continued weakness in the hydraulic fracturing market and a drop in US land rig count, contrasting with the strong growth seen in international markets.

Schlumberger has an ongoing share repurchase program with a Board-approved authorization extending to December 31, 2013. In the nine months ended September 30, 2012, the company repurchased approximately $972 million of its stock under this program, indicating a continued focus on returning capital to shareholders.

Yes, Schlumberger completed the divestiture of its Wilson distribution business in the second quarter and sold its interest in CE Franklin Ltd. in the third quarter of 2012. The results of these businesses, which comprised the Distribution segment, were classified as discontinued operations.