The following discussion and analysis of results of operations should be read in conjunction with the
Consolidated
Financial Statements
.
Fourth Quarter 2012 Results
Product Groups
(Stated in millions)
Fourth Quarter 2012
Third Quarter 2012
Revenue
Income
before
taxes
Revenue
Income
before
taxes
Oilfield Services
Reservoir Characterization
$ 3,150 $ 917
$ 2,910 $ 838
Drilling
4,137
696
4,048
733
Production
3,924
590
3,675
548
Eliminations & other
(37)
(39)
(25)
23
11,174 2,164
10,608
2,142
Corporate & other
(1)
–
(180)
–
(176)
Interest income
(2)
–
6
–
8
Interest expense
(3)
–
(90)
–
(85)
Charges & credits
(4)
–
(93)
–
(32)
$11,174 $1,807
$10,608 $1,857
Geographic Areas
(Stated in millions)
Fourth Quarter 2012
Third Quarter 2012
Revenue
Income
before
taxes Revenue
Income
before
taxes
Oilfield Services
North America
$ 3,409 $ 655
$ 3,290 $ 610
Latin America
2,071
377
1,860
333
Europe/CIS/Africa
2,958
579
2,985
646
Middle East & Asia
2,577
601
2,352
570
Eliminations & other
159
(48)
121
(17)
11,174 2,164
10,608 2,142
Corporate & other
(1)
–
(180)
– (176)
Interest income
(2)
–
6
–
8
Interest expense
(3)
–
(90)
–
(85)
Charges & credits
(4)
–
(93)
–
(32)
$11,174 $1,807
$10,608 $1,857
(1)
Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based
compensation costs, amortization expense associated with intangible assets recorded as a result of the 2010 acquisition of Smith International,
Inc. (“Smith”) and certain other nonoperating items.
(2)
Excludes interest income included in the segments’ income (fourth quarter 2012 – $- million; third quarter 2012 – $- million).
(3)
Excludes interest expense included in the segments’ income (fourth quarter 2012–$3 million; third quarter 2012 – $3 million).
(4)
Charges and credits are described in detail in Note 3 to the
Consolidated Financial Statements
.
Oilfield Services
Fourth-quarter revenue of $11.17 billion increased $567 million or 5% sequentially, on robust international activity.
Of the revenue increase, approximately 36% came from the typical year-end surge in product and software sales, and
12% came from the increase in WesternGeco multiclient sales. Reservoir Characterization Group revenue grew 8% to
reach $3.2 billion, while Drilling Group revenue of $4.1 billion was 2% higher. Production Group revenue increased 7%
to $3.9 billion. Geographically, International revenue of $7.6 billion increased $409 million or 6% sequentially, while
North America revenue of $3.4 billion grew by $118 million or 4% sequentially.
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