Schlumberger Profits Slide

24 January 2010 (Last Updated January 24th, 2010 18:30)

Oil services company Schlumberger has reported a net income of $795m for the fourth quarter of 2009, down from $1.15bn during the same period in 2008. Fourth-quarter revenue stood at $5.74bn, which is $113m less than the same quarter of the previous year. The company also repo

Oil services company Schlumberger has reported a net income of $795m for the fourth quarter of 2009, down from $1.15bn during the same period in 2008.

Fourth-quarter revenue stood at $5.74bn, which is $113m less than the same quarter of the previous year.

The company also reported a drop in net income in 2009 ($3.13bn) compared with 2008 ($5.44bn), while the full-year 2009 revenue stood at $22.70bn, from $27.16bn in 2008.

Schlumberger chairman and CEO Andrew Gould said that fourth-quarter revenue increased sequentially in the North America, Latin America, and Middle East and Asia areas, while Europe / CIS / Africa was flat compared with the previous quarter.

Fourth quarter revenue in North America was $873m, in Latin America $1.13bn, and Middle East and Asia $1.31bn, while in Europe / CIS / Africa it was $1.78bn.

"Europe / CIS / Africa was flat compared with the previous quarter as stronger offshore activity and year-end software and product sales in the area were not sufficient to offset the seasonal decline in Russia," Gould said in a statement.

"Overall, sequential margins were particularly affected by three events: a changed revenue mix in Canada; seasonal weakness in Russia; and reduced activity coupled with a less favourable revenue mix in the Mexico / Central America GeoMarket.

"We anticipate that 2010 will be a better year for multi-client seismic sales and for land seismic activity, particularly in the Middle East and North Africa, while marine activity will be reasonably robust, pricing improvements will be limited due to continued new capacity additions."

Oilfield services revenue of $5.17bn was up 4% sequentially, but down 17% year-on-year, while WesternGeco revenue of $549m was up 19% sequentially, but down 8% year-on-year.