Schlumberger Oilfield Services segment posts record revenue

Schlumberger Ltd.'s Oilfield Services segment posted record 2001 revenue of $9.8 billion and $1.9 billion in pretax operating income. Oilfield Services revenue for the fourth quarter was $2.5 billion, up 21% over the same quarter 2000. Pretax operating income was $469 million.

Jan. 22, 2002

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By the OGJ Online Staff

HOUSTON, Jan. 22 -- Schlumberger Ltd.'s Oilfield Services segment Tuesday posted record 2001 revenue of $9.8 billion and $1.9 billion in pretax operating income.
Oilfield Services revenue for the fourth quarter was $2.5 billion, up 21% over the same quarter of 2000.

Its pretax operating income was $469 million.

"The double digit year-on-year increase was led by higher non-rig related activities with 44% of the total revenue growth attributable to the WesternGeco Joint Venture," said Schlumberger. "In addition, increased pricing and market share gains contributed to double-digit growth across all areas led by the Middle East and Asia."

In North America, revenue of $847 million increased 17% over the same quarter last year but was down 10% from the third quarter, partly because of lower revenues and pricing pressures in the Canada and the US Gulf Coast.

In Latin America, revenue of $401 million was up 17% over the same quarter 2000 and up 12% over the third quarter, led by increased demand for wireline services because of the startup of new projects in southern Mexico and improved drilling activity in Ecuador.

Revenue from Russia and other members of the Commonwealth of Independent States, Europe, and West Africa was up 25% over the same quarter last year and 4% over the third quarter.

The segment's Middle East and Asia revenue totaled $581 million, up 33% over fourth quarter 2000 and up 6% over the third quarter. The growth came from increased well services activity in the Malaysia-Brunei-Philippines segment and in Saudi Arabia.

Schlumberger said that during the fourth quarter it secured a 10-year production optimization contract for Kyurovdag field in Azerbaijan, which it calls the largest such project in the world, covering 1,100 wells.

As a whole, Schlumberger Ltd. posted operating revenue of $13.7 billion and income of $819 million for the year and for the fourth quarter, operating revenue of $3.6 billion, up 33% from fourth quarter 2000.