GeoMarkets. PetroTechnical Services revenue also posted double-digit growth on strong consulting activity in the
Mexico & Central America GeoMarket. WesternGeco increased slightly as the end-of-year multiclient sales and UniQ
land seismic technology direct sale in Russia were partly offset by the sharp seasonal decline in Marine revenue on
lower vessel utilization following seasonal transits out of the North Sea. Wireline grew slightly on increased activity in
the US Gulf of Mexico following the recovery from the activity shut-down associated with Hurricane Isaac in the
previous quarter, but this was offset by a seasonal activity decline in Asia, mainly in the Australasia and China
GeoMarkets.
Pretax operating margin of 29.1% increased 31 bps sequentially. Margin expansion was primarily due to traditionally
strong end-of-year sales of Schlumberger Information Services (SIS) software and WesternGeco multiclient licenses.
Testing Services, Wireline and PetroTechnical Services margins also expanded on a more favorable technology mix in
exploration and development projects. These improvements were, however, subdued by lower WesternGeco Marine
margin as a result of lower vessel utilization.
Drilling Group
Fourth-quarter revenue of $4.1 billion increased $88 million or 2% sequentially. Pretax operating income of $696
million was 5% lower sequentially.
Revenue increased on international and offshore demand for Drilling & Measurements and M-I SWACO products and
services. Drilling Tools & Remedial Services activity also contributed to growth with a full-quarter of revenue for
Radius services. IPM revenue grew slightly, as increased projects in Australia and new start-ups in Iraq and Argentina
were partly offset by project completions in North Africa. The overall revenue increase was tempered by a decline in
drilling-related services, mainly in North America land, due to a seasonal decline in deviated and horizontal drilling
activity coupled with pricing weakness.
Pretax operating margin of 16.8% decreased 128 bps sequentially. Among the Group Technologies, sequential
margins in Drilling & Measurements and Drilling Tools & Remedial Services were flat, while margin contractions were
recorded at M-I SWACO and IPM due to geographical mix and operational and start-up delays.
Production Group
Fourth-quarter revenue of $3.9 billion increased $249 million or 7% sequentially. Pretax operating income of $590
million was 8% higher sequentially.
The increase in revenue resulted primarily from stronger Completions and Artificial Lift product year-end sales
coupled with new Framo subsea projects in the US Gulf of Mexico and in the North Sea and Angola GeoMarkets. Well
Intervention Services revenue increased on higher activity in the Mexico & Central America and Saudi Arabia &
Bahrain GeoMarkets. Well Services revenue grew mainly due to higher activity in the international and the North
America offshore markets. International activities were strong from stimulation vessel operations in Brazil,
unconventional fracturing activity in Mexico, and new projects in Kuwait and Iraq. Well Services stage count in North
America land also grew but land revenue declined on continued pricing weakness from the oversupply of hydraulic
horsepower.
Pretax operating margin increased 13 bps sequentially to 15%. The increase was largely attributable to the favorable
impact of year-end Completions and Artificial Lift product sales coupled with improved profitability from new Framo
subsea projects. This margin increase was largely offset by continued Well Services pricing weakness.
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