Oilfield services giant Schlumberger reported its second-quarter 2011 results late Thursday.
In a detailed company statement, Schlumberger reported a rise in quarterly revenue to $9.62 billion, a year on year increase of 62%, from $5.94 billion in Q2 2010.
Oilfield Services revenue of $8.99 billion increased 11% sequentially and 51% year-on-year. Pretax segment operating income of $1.75 billion was up 20% sequentially and 56% year-on-year.
Diluted earnings-per-share from continuing operations, excluding charges, was $0.87 versus $0.71 in the previous quarter, and $0.68 in the second quarter of 2010.
Distribution revenue of $637 million increased 6% sequentially. Pretax segment operating income of $24 million improved 8% sequentially.
Schlumberger now reports their results in three sectors: Reservoir characterization; Drilling; and Reservoir Production.
Reservoir Characterization revenue increased primarily on higher WesternGeco marine proprietary surveys and multi-client sales, on greater Wireline exploration activity and a partial recovery from the previous quarter’s exceptional weather and geopolitical events, and on increased Schlumberger Information Solutions (SIS) software sales.
Drilling revenue increased on higher M-I SWACO activity, and on stronger Drilling & Measurements technology penetration, increased pricing and improved job count. Among the Drilling Technologies, sequential increases were posted by Bits & Advanced Technologies, Drilling Tools & Remedial and Pathfinder. These increases, however, were partially offset by lower Integrated Project Management (IPM) Well Construction in Russia following the sale of the drilling rig business related to the strategic alliance with EDC in the Russia/CIS region.
Reservoir Production revenue increased sequentially on higher pricing, capacity additions and improved asset utilization for Well Services in North America but this increase was partially reduced by the effects of the spring break-up in Canada and adverse weather in the Williston basin. Internationally, Well Services grew on stronger activity in the Middle East and Asia Area. Artificial Lift and Completions product sales also grew robustly in the second quarter, particularly in Latin America.
Schlumberger Chairman and CEO Andrew Gould commented, “Second-quarter results showed strong growth worldwide. All Product Groups grew at double-digit rates. In North America, a prolonged Canadian spring break-up and poor weather in the northwest were offset by very strong growth in the rest of US land and a significant contribution from deepwater operations as the rig count increased and renewed interest in exploration activity in the Gulf of Mexico led to high multi-client seismic data sales”.
The company has released a detailed report, which can be read on their website.
