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 Highlights
50 data points| Revenue | $10.50B |
| Cost of Revenue | $8.24B |
| Gross Profit | $2.26B |
| R&D Expenses | $291.00M |
| Operating Income | $3.92B |
| Interest Expense | $89.00M |
| Net Income | $1.42B |
| EPS (Basic) | $1.07 |
| EPS (Diluted) | $1.07 |
| Shares Outstanding (Basic) | 1.33B |
| Shares Outstanding (Diluted) | 1.34B |
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.