Drilling
Fourth-quarter revenue of $3.91 billion was 6% higher sequentially. Pretax operating income of $658 million
improved 7% sequentially.
Significant sequential revenue growth was recorded by M-I SWACO from higher rig count on land in the US &
Canada; sustained growth in deepwater activity in the US Gulf of Mexico; and strong contributions in Latin America.
IPM activity increased significantly, mainly from projects in Mexico and in Iraq. Drilling & Measurements revenue
increased on improved pricing and strong activity in the US Gulf of Mexico and the Nigeria & Gulf of Guinea
GeoMarket, although this was partially offset by weather-related activity reductions in the North Sea and East Asia
GeoMarkets. In addition, Geoservices and Bits & Advanced Technologies registered robust sequential increases.
Sequentially, pretax operating margins were up slightly to 16.8%. Drilling & Measurements obtained increased
margins from improved technology mix and service pricing but this was partly offset by the effects of weather-related
activity delays and reductions. Most of the other Technologies exacted margin expansion following the continued
successful integration and expansion of Smith, Geoservices and Schlumberger drilling technologies.
Reservoir Production
Fourth-quarter revenue of $3.60 billion increased 7% over the prior quarter. Pretax operating income of $768 million
was 9% higher sequentially.
Among Reservoir Production Group Technologies, Completions and Artificial Lift posted the strongest sequential
growth driven by robust product sales across all Areas. Well Services sequential growth was seen mainly in North
America Land as additional fleets deployed and continued improvements in asset utilization and crew efficiency were
achieved although these positive factors were partially muted by the impact of year-end seasonal effects. Framo and
SPM also posted strong sequential increases.
Sequentially, fourth-quarter pretax operating margins were slightly up at 21.3%. Completions, Artificial Lift and Well
Services reported improvements from strong sales.
Full-Year 2011 Results
(Stated in millions)
2011
2010
Revenue
Income
before
taxes
Revenue
Income
before
taxes
Oilfield Services
Reservoir Characterization
$ 9,929 $2,449
$ 9,321 $2,321
Drilling
14,248 2,275
8,230 1,334
Reservoir Production
12,748 2,616
9,053 1,368
Eliminations & other
34
(35)
69
48
36,959 7,305
26,673 5,071
Distribution
2,621
103
774
29
Eliminations
(40)
–
–
–
2,581
103
774
29
Corporate & other
(1)
– (592)
– (405)
Interest income
(2)
–
37
–
43
Interest expense
(3)
– (290)
– (202)
Charges & credits
(4)
–
(225)
–
620
$39,540 $6,338
$27,447 $5,156
19
