Schlumberger 2010 Annual Report - page 38

Fourth-quarter pretax operating income of $1.33 billion increased 21% sequentially. Pretax operating margin
increased 224 bps sequentially to 22.1% primarily driven by the robust performance in North America and strong
contributions from the year-end equipment and software sales.
North America
Fourth-quarter revenue of $1.60 billion increased 27% sequentially and pretax operating income of $385 million was
75% higher.
Sequentially, revenue in US land grew 24% versus a 4% increase in rig count due to a combination of additional service
capacity, improved utilization, and high service intensity that mostly benefited Well Services technologies. Canada
revenue grew from higher land activity for Well Services, although this was partially offset by a slowdown in offshore
activity that impacted Drilling & Measurements services. The US Gulf of Mexico revenue increased through a modest
improvement in shelf activity and from Completion Systems equipment sales. An $87 million early payout relating to
services on an IPM gain share project – triggered by the customer’s sale of the field – also contributed to Area growth.
Pretax operating margin for the Area increased 658 bps sequentially to 24.0%. This increase was largely driven by US
land through stronger activity and increased efficiency for Well Services operations. The IPM gain share payout
contributed approximately $55 million to Area pretax operating income.
Latin America
Fourth-quarter revenue of $1.05 billion decreased 2% versus the prior quarter. Pretax operating income of $174 million
increased 9% compared to the third quarter of 2010.
Sequentially, the Brazil GeoMarket achieved record high revenue on strong deepwater activity, while revenue in the
Peru/Colombia/Ecuador GeoMarket grew from higher gain share on IPM activity in Colombia and from Testing Services
equipment sales in Peru. These increases, however, were insufficient to offset a significant revenue drop in the Mexico/
Central America GeoMarket where continuing security issues and client budgetary constraints further reduced IPM
activity levels.
Pretax operating margin improved 171 bps sequentially to 16.6% primarily due to a more favorable revenue mix in the
Peru/Colombia/Ecuador and Venezuela/Trinidad & Tobago GeoMarkets.
Fourth-quarter revenue of $1.78 billion increased 3% compared to the third quarter of 2010. Pretax operating income
of $339 million increased 7% sequentially.
Sequentially, revenue in the North Sea GeoMarket increased primarily from higher activity in Norway and from year-
end SIS software sales. In the West & South Africa GeoMarket, revenue grew on stronger activity that benefited Wireline
and Drilling & Measurements services and on higher Completion Systems equipment sales. Caspian GeoMarket revenue
increased from the startup of several projects that resulted in higher demand for Drilling & Measurements, Testing
Services and Wireline technologies as well as from a Well Services equipment sale. Continental Europe revenue grew on
higher activity for Well Services and Testing Services technologies and on year-end SIS software sales. These increases,
however, were partially offset by a decrease in Nigeria & Gulf of Guinea GeoMarket revenue from lower Completion
Systems equipment sales and from delays that reduced demand for Wireline services. Russia revenue was also lower with
the onset of the winter slowdown.
Pretax operating margin improved sequentially by 74 bps to 19.0% primarily from a stronger mix of high-margin
Wireline and Drilling & Measurements services in the North Sea and West & South Africa GeoMarkets as well as from
year-end SIS software sales across much of the Area. These increases were partially offset by the impact of the activity
weakness in the Nigeria & Gulf of Guinea GeoMarket.
Middle East & Asia
Fourth-quarter revenue of $1.49 billion increased 6% sequentially. Pretax operating income of $434 million increased
2% sequentially.
Part II, Item 7
1...,28,29,30,31,32,33,34,35,36,37 39,40,41,42,43,44,45,46,47,48,...108
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