Business Wire India
Schlumberger Limited (NYSE:SLB) today reported results for the third quarter of 2015.
| (Stated in millions, except per share amounts) | |||||||||||||||
| Three Months Ended | Change | ||||||||||||||
| Sept. 30, 2015 | Jun. 30, 2015 | Sept. 30, 2014 | Sequential | Year-on-year | |||||||||||
| Revenue | $8,472 | $9,010 |
$12,646 |
-6% | -33% | ||||||||||
| Pretax operating income | 1,521 | 1,708 | 2,806 | -11% | -46% | ||||||||||
| SLB income from continuing operations* | 989 | 1,124 | 1,949 | -12% | -49% | ||||||||||
| Diluted EPS from continuing operations* | $0.78 | $0.88 | $1.49 | -11% | -48% | ||||||||||
| Pretax operating margin | 18.0% | 19.0% | 22.2% | -101 bps | -424 bps | ||||||||||
| North America revenue | $2,273 | $2,361 |
$4,255 |
-4% | -47% | ||||||||||
| North America pretax operating income | 202 | 242 | 825 | -17% | -76% | ||||||||||
| North America pretax operating margin | 8.9% | 10.2% | 19.4% | -136 bps | -1,051 bps | ||||||||||
| International revenue | $6,068 | $6,525 |
$8,309 |
-7% | -27% | ||||||||||
| International pretax operating income | 1,440 | 1,595 | 2,041 | -10% | -29% | ||||||||||
| International pretax operating margin | 23.7% | 24.5% | 24.6% | -72 bps | -83 bps | ||||||||||
| *There were no charges or credits recorded during the second and third quarters of 2015 or the third quarter of 2014. | |||||||||||||||
Schlumberger Chairman and CEO Paal Kibsgaard commented, “Schlumberger third-quarter revenue decreased 6% sequentially driven by a continuing decline in rig activity and persistent pricing pressure throughout our global operations. North America revenue fell 4% sequentially as we focused on balancing margins and market share, while International revenue dropped 7% due to customer budget cuts, activity disruptions, and service pricing erosion.
“The business environment deteriorated further in the third quarter. However, the cost reduction actions we took in previous quarters and the acceleration of our transformation program enabled us to protect our financial performance in what is shaping up to be the most severe downturn in the industry for decades. As a result of our actions, we have been able to deliver pretax operating margins well above those seen in any previous downturn and we have continued to generate significant liquidity with free cash flow of $1.7 billion in the third quarter, representing 170% of earnings.
“During the first nine months of 2015, our year-on-year revenue has dropped by 34% in North America, and 18% internationally. In spite of the size of these declines, our decremental operating margins over the same period have been limited to 34% in North America, and 23% internationally. These figures continue to
