Latin America
Revenue of $4.22 billion was marginally lower compared to 2008. The weakening of local currencies against the
US dollar reduced 2009 revenue by approximately 3%. In addition, Venezuela/Trinidad & Tobago revenue fell due to
significantly reduced customer spending while Peru/Colombia/Ecuador revenue was lower due to reduced gain share in
IPM projects. These decreases were mostly offset by higher IPM activity in Mexico/Central America and increased
offshore activity in Brazil.
Pretax operating margin decreased 245 bps to 17.8% primarily as the result of the sharp activity decline in Venezuela/
Trinidad & Tobago and the lower gain share in Peru/Colombia/Ecuador.
Europe/CIS/Africa
Revenue of $7.15 billion was 13% lower than last year largely due to the weakening of local currencies against the
US dollar, which reduced revenue by approximately 7%. In addition, revenue was negatively impacted by reduced
customer spending that resulted in significantly lower activity and pricing erosion in Russia and the North Sea. Revenue
in the West & South Africa and Caspian GeoMarkets and in Framo was also negatively impacted by lower activity levels.
These decreases were partially offset by a revenue increase in the North Africa GeoMarket due to strong Testing Services
product sales.
Pretax operating margins declined 357 bps to 23.9% on a combination of the overall lower activity and heavy pricing
pressure across the Area.
Middle East & Asia
Revenue of $5.23 billion was 9% below 2008. Revenue was down across much of the Middle East, especially in the East
Mediterranean and Arabian GeoMarkets, due to reduced demand for Drilling & Measurements, Wireline and Testing
Services technologies. Revenue in Asia also fell, primarily due to a decrease in offshore exploration activity, which was
most significant in the East Asia and Australia/Papua New Guinea GeoMarkets, resulting in lower demand for Testing
Services and Wireline technologies as well as Completion Systems products.
Pretax operating margin decreased 268 bps to 32.4% primarily as a result of the lower overall activity and a less
favorable revenue mix across the Area.
WesternGeco
Full-year revenue of $2.12 billion was 25% lower than 2008. Revenue decreased across all product lines, with the
largest declines experienced in Marine and Multiclient. Marine revenue declined due to lower activity combined with
reduced pricing as the result of weak market conditions. Multiclient revenue decreased primarily in North America, as
customers continued to reduce discretionary spending. Land revenue fell on lower crew utilization, while Data
Processing revenue was down reflecting lower activity primarily in Europe/Africa and in North America.
Pretax margin decreased 14.1 percentage points to 15.4% primarily due to the weaker Marine activity and pricing as
well as lower Multiclient sales.
Interest and Other Income
Interest and other income consisted of the following:
2010
2009 2008
(Stated in millions)
Interest income
$ 50
$ 61 $119
Equity in net earnings of affiliated companies:
M-I SWACO
78
131 210
Others
86
78
83
Other
–
3
–
$214
$273 $412
24
Part II, Item 7
