Schlumberger Announces First Quarter 2004 Results

Schlumberger Limited (NYSE:SLB) reported first quarter 2004 operating revenue of $3.02 billion versus $2.65 billion in 2003. Income from continuing operations (before the previously announced charges) of $279 million, or $0.47 per share, was 87% higher than last year. Including after-tax charges of $152 million, income from continuing operations was $127 million, or $0.22 per share.

Discontinued operations recorded a gain of $93 million ($0.15 per share) in the quarter, resulting in net income of $220 million, or $0.37 per share.

Oilfield Services revenue of $2.36 billion increased 2% compared to the fourth quarter of 2003, and 15% compared to the same quarter of last year. Pretax operating income of $423 million increased 1% sequentially and 31% year-on-year.

WesternGeco revenue of $313 million was 2% higher sequentially and year-on-year. Pretax operating income of $34 million improved $1 million sequentially and compared to break-even in the first quarter of 2003.

Other activities, which comprise mainly Axalto, Electricity Meters North America and Business Continuity had revenue of $349 million and pretax operating income of $26 million.

Schlumberger Chairman and CEO Andrew Gould commented, "First quarter activity was particularly strong in Canada, India, Indonesia, West Africa, and on land in the United States. These gains offset slow activity in Venezuela, the Gulf Coast, and the Caspian. Western Geco continued to progress due largely to recovery in Multiclient sales in the Gulf of Mexico.

The quarter marked the completion of the sale of SchlumbergerSema as well as the divestiture of a number of other non-oilfield businesses. As a result, net debt dropped below $3 billion at the end of the quarter. Programs for the remaining divestitures are in place and significant steps have been made to restructure our debt for a more efficient capital structure.

The activity confirmed our belief that E&P spending will remain robust in the face of increased demand from China and the United States. While fundamentals for the remainder of the year remain strong, geopolitical and local industry conditions continue to restrict investment and activity in some parts of the world, moderating short-term growth."