Schlumberger in ‘Record High’ Q3

Schlumberger has reported third-quarter 2014 revenue of $12.6 billion versus $12.1 billion in the second quarter of 2014, and $11.6 billion in the third quarter of 2013.

Third-quarter revenue was up 5% sequentially and increased 9% year-on-year with International Areas revenue of $8.3 billion growing $222 million, or 3% sequentially, while North America Area revenue of $4.3 billion increased $367 million, or 9% sequentially.

Income from continuing operations attributable to Schlumberger was $1.9 billion, an increase of 8% sequentially and an increase of 14% year-on-year. Diluted earnings-per-share from continuing operations was $1.49 versus $1.37 in the previous quarter, and $1.29 in the third quarter of 2013, an increase of 9% sequentially and an increase of 16% year-on-year.

Pretax operating income in the third quarter reached $2.8 billion, up 7% sequentially and 12% year-on-year. International Areas pretax operating income of $2.0 billion increased 5% sequentially, while North America pretax operating income of $825 million increased 18% sequentially.

Schlumberger CEO, Paal Kibsgaard, commented: “Strong activity in North America and robust growth in International Areas, led by Latin America and supported by Europe/Africa/CIS in spite of international sanctions in Russia, drove third-quarter results to a new record high. At the same time, Middle East & Asia proved highly resilient in the face of significant headwinds in Northern Iraq. All Areas and all Groups recorded growth, backed by new technology penetration and strong operational execution.

Geographically, results were led by North America and driven by Canada with a strong seasonal rebound on land and significantly higher east coast offshore activity. US land was also strong in spite of adverse weather. In Latin America, all markets recorded growth—particularly in Mexico, both on land and offshore—and in Argentina on unconventional resource development. In Sub-Saharan Europe/Africa/CIS, exploration activity in Angola and new projects in Congo and Equatorial Guinea together with a seasonal rebound in Russia more than offset a slowdown in Norway. Middle East and Asia results were solid, with strength in Saudi Arabia and Oman offsetting a significant slowdown in Northern Iraq and lower activity in India.”

OneSubsea, a Cameron International Corporation and Schlumberger joint venture, and Helix Energy Solutions Group, Inc. entered into a letter of intent to form an alliance to develop technologies and deliver services to optimize the cost and efficiency of subsea well intervention systems.

Upon agreement on the final terms of the definitive agreement, the alliance will leverage the capabilities of Helix, OneSubsea and Schlumberger, to provide a unique, fully integrated offering, combining marine support with well access and control technologies.

The alliance will focus on several objectives aimed at increasing the operating envelope of today’s subsea intervention technology. These objectives include the expansion of applications enabled by subsea well-access technology, and specific solutions for deep and ultra-deepwater basins and higher well pressure environments.