Sequentially, revenue growth resulted from the continued ramp up of IPM activity in Iraq and the start of new offshore
projects in East Asia. Year-end sales of Artificial Lift and Completion Systems equipment, Well Services products, and
SIS software also contributed to Area growth. These increases were partially offset by lower revenue in the Australia/
Papua New Guinea GeoMarket resulting from offshore project completions and delays in land activity due to severe
flooding, and by lower activity in the Qatar GeoMarket that reduced demand for Wireline and Drilling & Measurements
services.
Pretax operating margin decreased 119 bps sequentially to 29.1% as the positive contribution from the year-end sales
and a more favorable revenue mix in the Arabian GeoMarket were insufficient to offset the impact of the lower activity in
the Australia/Papua New Guinea GeoMarket and startup costs in Iraq.
WesternGeco
Fourth-quarter revenue of $560 million increased 17% sequentially. Pretax operating income of $113 million increased
183% sequentially.
Sequentially, revenue growth was driven by Multiclient, which recorded strong year-end sales from the US Gulf of
Mexico. This increase was partially offset by a decrease in Marine revenue due to the seasonal slow-down in activity.
Land and Data Processing revenues were flat sequentially.
Pretax operating margin increased 11.8 percentage points sequentially to 20.2% as the result of the high Multiclient
sales partially offset by the impact of the lower Marine activity.
Full-Year 2010 Results
Revenue
Income
before
taxes
Revenue
Income
before
taxes
2010
2009
(Stated in millions)
OILFIELD SERVICES
North America
$ 5,010 $ 802
$ 3,707 $ 216
Latin America
4,321
723
4,225
753
Europe/CIS/Africa
6,882 1,269
7,150
1,707
Middle East & Asia
5,586 1,696
5,234
1,693
Elims/Other
280
(15)
202
(43)
22,079 4,475
20,518
4,326
WESTERNGECO
1,987
267
2,122
326
M-I SWACO
(1)
1,568
197
SMITH OILFIELD
(1)
957
132
DISTRIBUTION
(1)
774
29
Corporate
(2)
82 (405)
62
(344)
Interest income
(3)
43
52
Interest expense
(4)
(202)
(188)
Charges & credits
(5)
620
(238)
$27,447 $5,156
$22,702 $3,934
(1) 2010 includes four months of post-merger activity following the transaction with Smith on August 27, 2010. See Note 4 to the
Consolidated
Financial Statements
for further details.
(2) Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compen-
sation costs, amortization expense associated with intangible assets recorded as a result of the merger with Smith and certain other nonoperating
items.
(3) Excludes interest income included in the segments’ income (2010 – $7 million; 2009 – $10 million).
(4) Excludes interest expense included in the segments’ income (2010 – $5 million; 2009 – $33 million).
(5) Charges and credits are described in detail in Note 3 to the
Consolidated Financial Statements
.
Oilfield Services
Full-year 2010 revenue of $22.08 billion was 8% higher than 2009. Revenue growth was strongest in the North America
Area mostly as a result of higher activity and pricing for Well Services technologies in US Land but partially offset by
21
Part II, Item 7
