SLB » Topics » WesternGeco

These excerpts taken from the SLB 10-K filed Feb 5, 2010.

WesternGeco

 

Fourth-quarter revenue of $549 million increased 19% sequentially. Pretax operating income of $115 million increased 89% sequentially.

Sequential revenue growth was led by Multiclient which recorded strong year-end sales of wide-azimuth surveys in the US Gulf of Mexico. Land revenue also grew due to increased activity in the Middle East and North Africa. These increases, however, were partially offset by a significant decrease in Marine as the result of weaker pricing, project start-up delays and vessel transits.

Pretax operating margin improved 776 bps sequentially to 20.9% primarily as a result of the high Multiclient sales that were partially offset by the impact of the lower pricing and project delays in Marine.

 

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.

Revenue backlog was $1.0 billion at December 31, 2009, compared to $1.8 billion at December 31, 2008.

 

WesternGeco

 

Full-year 2008 revenue of $2.84 billion was 4% lower than 2007. Multiclient revenue was down primarily as the result of significantly lower client discretionary spending in the fourth quarter of 2008, while Land decreased on lower crew utilization. These decreases were partially offset by increases in Marine, as a result of additional vessel capacity and higher pricing, and in Data Processing, which experienced a growth in activity in all geographic areas.

Pretax operating margin of 29.5% decreased 634 bps due to significantly lower Multiclient sales, reduced Land activity and cost inflation that affected Marine operations.

Revenue backlog was $1.8 billion at December 31, 2008, compared to $1.2 billion at December 31, 2007.

 

WesternGeco

 

Revenue from all services is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable and collectibility is reasonably assured. Revenue from contract services performed on a dayrate basis is recognized as the service is performed. Revenue from other contract services, including pre-funded multiclient surveys, is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a non-transferable basis. Revenue on completed multiclient data surveys is recognized upon obtaining a signed licensing agreement and providing customers with access to such data.

 

This excerpt taken from the SLB 8-K filed Jan 22, 2010.

WesternGeco

Full-year 2009 revenue of $2.12 billion was 25% lower than 2008. Pretax operating income of $326 million was down 61% versus 2008. Pretax operating margin decreased 14 percentage points to 15.4% primarily due to significantly lower activity and pricing in Marine as well as a decrease in Multiclient sales.

Fourth-quarter revenue of $549 million increased 19% sequentially but decreased 8% year-on-year. Pretax operating income of $115 million increased 89% sequentially and 30% year-on-year.

Sequential revenue growth was led by Multiclient which recorded strong year-end sales of wide-azimuth surveys in the US Gulf of Mexico. Land revenue also grew due to increased activity in the Middle East and North Africa. These increases, however, were partially offset by a significant decrease in Marine as the result of weaker pricing, project start-up delays and vessel transits.

Pretax operating margin improved 776 bps sequentially to 20.9% primarily as a result of the high Multiclient sales that were partially offset by the impact of the lower pricing and project delays in Marine.

In the US Gulf of Mexico, two WesternGeco multiclient wide-azimuth crews were active during the quarter. The first crew, on the WG Magellan, continued acquisition of the E-Octopus IX survey in the Alaminos and Keathley Canyon areas, while the second crew, on the WG Columbus, began acquisition of the E-Octopus VII survey in the Lower Tertiary of the Walker Ridge—a survey that will integrate the previous E-Octopus IV and E-Octopus VI phases.

Wide-azimuth multiclient survey processing in the US Gulf of Mexico also advanced in the quarter with completion of final processing on the E-Octopus IV project in the Keathley Canyon area. With this step, the WesternGeco Gulf of Mexico data library has expanded to more than 1,000 Outer Continental Shelf blocks of seamless depth-migrated E-Octopus seismic coverage.

WesternGeco has been contracted to perform the first multi- and wide-azimuth projects offshore Brazil. The projects are to be acquired in the first quarter of 2010, with the wide-azimuth survey forming the baseline for future 4D projects. Multi- and wide-azimuth seismic acquisition techniques have been shown to improve illumination and imaging around and beneath salt structures allowing better prospect definition.

Offshore Angola, a WesternGeco Q-Seabed* multicomponent seabed seismic system crew recently completed a year-long project for Chevron (CABGOC). The 1,100-sq km survey ranks among the largest ocean-bottom-cable multicomponent surveys ever acquired, and was performed in a highly congested, active oilfield with many platforms, pipelines and production installations.

During the quarter, WesternGeco deployed the next-generation UniQ* integrated point-receiver land seismic acquisition and processing system in Kuwait for the Kuwait Oil Company. The new system, designed for greater operational efficiency and flexibility, offers up to four times the capability of existing Q-Land* systems and is currently acquiring data from 53,000 live point-receiver channels in conjunction with WesternGeco DX-80* Desert Explorer vibrators and MD Sweep* technology.

 

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This excerpt taken from the SLB 8-K filed Oct 23, 2009.

WesternGeco

Third-quarter revenue of $463 million decreased 17% sequentially and 48% year-on-year. Pretax operating income of $61 million decreased 37% sequentially and 83% year-on-year.

Sequentially, Multiclient revenue decreased mostly on reduced sales in North America and the North Sea. Marine revenue fell primarily as the result of weaker pricing and the completion of two large contracts. Land revenue was also lower due to project delays in the Middle East and Africa. Data Processing revenue was flat versus the previous quarter.

Pretax operating margin fell 421 bps sequentially to 13.1% primarily as a result of the lower Multiclient sales and Land project delays.

During the quarter, the WesternGeco Magellan left the shipyard in Spain on its maiden voyage to begin operations. The 12-streamer vessel is the world’s second seismic X-Bow design to sail, following the WesternGeco Columbus earlier in 2009. The new design provides improved transit speeds, lower power consumption, reduced emissions and lower levels of pitching and vibration for a friendlier work environment.

WesternGeco recently completed the first ever wide-azimuth survey in Angolan waters—ahead of schedule and within budget. The vessels Western Trident, Geco Diamond and Gilavar performed the survey and their crews and shore-side management were commended by BP for their professional approach, timely delivery of service, excellent data quality and outstanding performance.

Following the feasibility study completed for Apache on the Forties field in the UK North Sea, WesternGeco was awarded a 4D Q-Marine* seismic survey on the field. The contract includes data processing of the new survey as well as the reprocessing of several other existing datasets and is the first Q-Marine award by Apache.

 

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In response to significant customer interest, WesternGeco began acquisition of multiclient surveys E-Octopus VIII and E-Octopus IX in early September. Located in the highly prospective Alaminos Canyon, Keathley Canyon and East Breaks areas of the US Gulf of Mexico, the surveys cover more than 450 Outer Continental Shelf (OCS) blocks and target some of the most challenging subsalt imaging areas of the OCS.

Operations commenced on a land 4D baseline survey for Chevron Australia during the quarter. The survey is a mixture of onshore and transition zone work within a Class A nature reserve on Barrow Island. The results of this and future surveys will be used to monitor the underground injection of carbon dioxide from gas produced from the Gorgon field and injected into a formation more than 2,000 m beneath Barrow island.

In seismic data processing, the proven results generated by WesternGeco 3D GSMP* Generalized Surface Multiple Prediction and Reverse Time Migration (RTM) workflows resulted in the award of three significant contracts in North America during the quarter.

WesternGeco Electromagnetics completed a multiclient project in the Potiguar Basin, offshore Brazil. The project comprised integrated interpretation of 2D prestack depth-migrated seismic data, Petromod* petroleum systems modeling, and analysis of satellite oil-seep information to generate prospects. An accumulated total of approximately 1,300 sq km of Controlled Source Electromagnetics (CSEM) data were then acquired over these prospects and inverted to create resistivity datasets. The resulting geophysical datasets have been integrated into a Petrel database to be offered as part of a multiclient package.

WesternGeco Electromagnetics was awarded a contract to conduct the first CSEM survey in the Turkish sector of the Black Sea. The survey, to be acquired by Toisa Vigilant is the largest volume of CSEM work tendered and awarded in the industry to date.

 

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This excerpt taken from the SLB 8-K filed Jul 24, 2009.

WesternGeco

Second-quarter revenue of $559 million increased 1% sequentially but decreased 17% year-on-year. Pretax operating income of $97 million increased 77% sequentially but was 51% lower year-on-year.

Sequentially, Multiclient revenue improved primarily in North America due to increased sales of the E-Octopus surveys, and in the North Sea following the announcement of licensing round awards. Land revenue increased slightly with the start of a new project in Asia. These increases were partially offset by a decrease in Marine revenue on weaker activity.

Pretax operating margin increased 7.4 percentage points sequentially to 17.3% primarily due to higher Multiclient sales and improved profitability in Marine as cost reduction initiatives more than offset the impact of the lower revenue.

In Oman, Petroleum Development Oman LLC (PDO) awarded WesternGeco a land seismic acquisition survey over a 3,000 sq km area in the south. The Waad survey marks the first WesternGeco land seismic acquisition contract with PDO since 2004.

Offshore Brazil, WesternGeco Electromagnetics has begun a multiclient controlled-source electromagnetic (CSEM) and magneto-telluric (MT) survey over the Potiguar and Ceara basins. Survey locations have been identified through seismic data and PetroMod* petroleum systems modeling technology. The resulting integrated data sets derived from joint interpretation of seismic, CSEM, MT and petroleum system model inputs will be available in Petrel workflow process software.

Offshore Australia, WesternGeco DISCover* Deep Interpolated Streamer Coverage technology has been successfully used to efficiently acquire broad bandwidth seismic data rich in low-frequency information without compromising high-frequency content. Low frequency content is extremely important for high quality inversion and geological interpretation and the technique shows great promise in areas with complex overburden and deep targets. The service is available across the Q-Marine* fleet.


These excerpts taken from the SLB 10-Q filed Apr 29, 2009.

WESTERNGECO

First-quarter revenue of $551 million decreased 8% versus the fourth-quarter of 2008. Pretax operating income of $55 million was down 38% sequentially.

Sequentially, Multiclient revenue decreased sharply, primarily in North America, as customers further curtailed discretionary spending. Data Processing recorded a sequential decrease across all areas except Latin America, while Land was down due to the completion of projects in the Middle East. These decreases were partially offset by an increase in Marine revenue with the start of several new proprietary contracts.

Total backlog decreased $319 million to $1.5 billion at the end of the quarter, partly due to delayed contract awards pending the results of licensing rounds in several countries.

Pretax operating margin decreased 483 bps to 9.9% primarily due to the lower Multiclient and Data Processing revenues, which were partially offset by improvements from Land as the result of efficient shutdowns following contract completions.

 

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Table of Contents

WESTERNGECO

First-quarter 2009 revenue of $551 million decreased 18% year-on-year. Multiclient revenue was down significantly, mostly in North America, as customers reduced discretionary spending. Land revenue was lower primarily due to the completion of projects in Latin America. Marine revenue decreased on reduced vessel utilization.

Year-on-year, pretax operating margin decreased 19.1 percentage points to 9.9% primarily due to the impact of the lower Multiclient and Marine revenue.

This excerpt taken from the SLB 8-K filed Apr 24, 2009.

WesternGeco

First-quarter revenue of $551 million decreased 8% sequentially and 18% year-on-year. Pretax operating income of $55 million was down 38% sequentially and 72% year-on-year.

Sequentially, Multiclient revenue decreased sharply, primarily in North America, as customers further curtailed discretionary spending. Data Processing recorded a sequential decrease across all areas except Latin America, while Land was down due to the completion of projects in the Middle East. These decreases were partially offset by an increase in Marine revenue with the start of several new proprietary contracts. Total backlog decreased $319 million to $1.5 billion at the end of the quarter, partly due to delayed contract awards pending the results of licensing rounds in several countries.

Pretax operating margin decreased 483 bps to 9.9% primarily due to the lower Multiclient and Data Processing revenues, which were partially offset by improvements from Land as the result of efficient shutdowns following contract completions.

During the quarter, the WG Columbus left the shipyard in Spain on its maiden voyage to commence seismic operations in the US Gulf of Mexico. The 12-streamer vessel was acquired through the 2007 purchase of Eastern Echo and is the world’s first seismic X-Bow design to sail. The new design provides improved transit speeds, lower power consumption, reduced emissions and lower levels of pitching and vibration for a friendlier work environment.

 

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In Yemen, Safer E&P Operations Company awarded WesternGeco a 1,600 sq-km 3D land seismic contract over Block 18. The award marks the first WesternGeco onshore venture in Yemen since 2002.

In Libya, WesternGeco Land Crew 1914 set a new productivity record for a land seismic crew by completing 13,315 vibrator points in a single day. The survey is being conducted for BP using the BP independent simultaneous sweeping (ISS) vibroseis technique.

In Norway, StatoilHydro and WesternGeco conducted a collaborative full-azimuth marine survey design and modeling project to evaluate multiple wide-azimuth (WAZ) acquisition configurations including Coil Shooting*. Coil Shooting is the new WesternGeco method for acquiring full-azimuth towed-streamer surveys using Q-Marine* technology with a single vessel. Previously, this type of survey was a lengthy operation requiring multiple vessels.

 

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These excerpts taken from the SLB 10-K filed Feb 11, 2009.

WesternGeco

 

Revenue from all services is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable and collectibility is reasonably assured. Revenue from contract services performed on a dayrate basis is recognized as the service is performed. Revenue from other contract services, including pre-funded multiclient surveys, is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a non-transferable basis. Revenue on completed multiclient data surveys is recognized upon obtaining a signed licensing agreement and providing customers with access to such data.

 

WesternGeco

 

STYLE="margin-top:0px;margin-bottom:0px">Revenue from all services is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable and collectibility is reasonably assured.
Revenue from contract services performed on a dayrate basis is recognized as the service is performed. Revenue from other contract services, including pre-funded multiclient surveys, is recognized as the seismic data is acquired and/or processed on
a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a
non-transferable basis. Revenue on completed multiclient data surveys is recognized upon obtaining a signed licensing agreement and providing customers with access to such data.

SIZE="1"> 

This excerpt taken from the SLB 8-K filed Jan 23, 2009.

WesternGeco

Full-year 2008 revenue of $2.84 billion was 4% lower than 2007. Pretax operating income of $836 million was down 21% versus 2007. Pretax operating margin of 29.5% decreased 634 bps due to significantly lower Multiclient sales, reduced Land activity and cost inflation that affected Marine operations. At the end of 2008, the backlog of $1.77 billion was 51% higher year-on-year and underpinned by long-term contracts.

Fourth-quarter revenue of $599 million decreased 33% sequentially and 25% year-on-year. Pretax operating income of $88 million was 75% lower sequentially and 68% lower year-on-year.

Sequentially, Marine revenue decreased significantly due to seasonal vessel transits, dry docks and project startups. Multiclient revenue was also down markedly as customers reduced discretionary spending. Land revenue, however, increased due to higher utilization and the start of new projects in Latin America and Africa while Data Processing recorded modest growth.

Pretax operating margin decreased sequentially to 14.7% due to lower Marine vessel utilization, higher transits and the slowdown in Multiclient sales, the effects of which were only partially offset by the higher Land crew utilization.

In Angola, WesternGeco began acquisition of a wide-azimuth survey in Block 31 for BP Exploration (Angola) Ltd. BP chose the wide-azimuth technique to enable better imaging of structures beneath salt intrusions.

Also in Angola, WesternGeco began a major Q-Seabed* multicomponent (4C) project for Chevron in Block 0 adjacent to the Cabinda coastline. The survey will cover an area of approximately 1,500 sq km making it one of the largest seabed projects ever to be undertaken. The use of 72 km of Q-Seabed cable with dual source vessels will allow superior acquisition efficiency and significant data quality improvement over conventional systems in a challenging area with extensive production activity and infrastructure.

PEMEX awarded WesternGeco a seismic acquisition and processing contract for the Aquila project—the largest 3D Q-Marine survey in Mexico to date. The survey covers an 8,000-sq km deep-water area offshore northern Mexico and data acquisition began in October 2008.

WesternGeco Electromagnetics successfully acquired a controlled source electromagnetic survey (CSEM) for ENI in deepwater offshore Nigeria. The acquisition phase was completed during October and November and the data are currently undergoing advanced processing and inversion in the Milan Electromagnetics Center of Excellence. WesternGeco Electromagnetics also completed the processing and interpretation of a large CSEM project in Greenland with the application of industry-leading inversion techniques to integrate the data with seismic information over the areas of interest.

 

 

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Crescent Petroleum awarded WesternGeco a Q-Land* acquisition and processing contract to image a complex thrust belt in Sharjah, United Arab Emirates (UAE). The project followed a successful survey in a similar play in the UAE using the Q-Land system, proprietary DX-80* vibrators, MD Sweep* maximum displacement sweep design methodology for low frequencies and low distortion, and WesternGeco proprietary depth imaging processing.

In Australia, WesternGeco was awarded a contract for a 4D Q-Marine* monitor survey on the Enfield field for Woodside Energy Ltd.

Also in Australia, acquisition of the Keystone and Aragon Multiclient 3D surveys has been completed in the North West Shelf area. These data cover 5,000 sq km and 3,500 sq km respectively. Both surveys were fully prefunded.

 

 

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This excerpt taken from the SLB 10-Q filed Oct 22, 2008.

WESTERNGECO

Nine-month revenue of $2.24 billion was 3% higher than the same period last year. Marine revenue increased as the result of higher pricing and the addition of one vessel to the fleet while Data Processing revenue grew on increased activity. These increases were partially offset by a decrease in Multiclient on lower late sales in North America, and in Land due to reduced activity and contract completions.

Pretax operating margin decreased from 36.4% to 33.4% primarily as the result of the impact of lower Multiclient late sales in North America and the reduced Land activity.

This excerpt taken from the SLB 8-K filed Oct 17, 2008.

WesternGeco

Third-quarter revenue of $892 million increased 33% sequentially and 12% year-on-year. Pretax operating income of $355 million was 81% higher sequentially and increased 16% year-on-year.

Sequentially, Marine revenue increased sharply on strong activity in the North Sea and the transfer of three vessels from multi-client to proprietary surveys during the quarter. Multiclient revenue grew due to increased sales in North America, Latin America and Europe. Data Processing also recorded higher revenue primarily in Europe, North America and India. However, these increases were partially offset by a decrease in Land revenue on reduced activity and contract completions in North Africa and Latin America.

Pretax operating margin increased sequentially to 39.8% mainly due to increased Marine activity with seasonally stronger pricing and to Multiclient as a result of the increased sales and more favorable margin mix. These increases were partially offset by lower Land operating income resulting from the impact of reduced crew utilization and contract completions.

WesternGeco completed the first commercial Coil Shooting* full-azimuth marine seismic survey for Eni Indonesia. The project, which has received full technical support and endorsement from the Indonesian authorities, covered the Tulip Reservoir in the Bukat PSC in Kalimantan, Indonesia. The acquisition commenced in July 2008 using the seismic vessel Geco Topaz. The data will be processed with WesternGeco depth imaging software and integrated with Schlumberger inversion products. Coil Shooting is a unique full-azimuth acquisition and processing technique made possible with Q-Marine* technology, using a single seismic vessel to record 360 degrees of azimuth over a survey area– removing the need for additional source vessels.

WesternGeco completed the acquisition phase of a major electromagnetics project to acquire and interpret Controlled Source Electromagnetics (CSEM) and Marine Magnetotellurics (MMT) data over selected prospects offshore Greenland. The survey data were acquired using the M/V Toisa Valiant, a specialized electromagnetics vessel. The next phase of the project is to complete data processing, inversion, interpretation and integration with other measurements.

In Libya, Gazprom Libya BV awarded WesternGeco a Q-Land* seismic acquisition and processing contract covering 3,400 sq km of 3D seismic over the Ghadames Basin. In order to improve the imaging of this deep target, Gazprom selected the Q-Land system combined with WesternGeco DX-80 vibrators and low-frequency, low-distortion MD Sweep* maximum displacement sweep technology.


This excerpt taken from the SLB 10-Q filed Jul 23, 2008.

WESTERNGECO

Six-month revenue of $1.35 billion was 2% lower than the same period last year primarily as a result of a decline in Multiclient sales in North America and lower activity in Land, partially offset by an increase in Marine upon the addition of a new vessel and increased demand in Data Processing.

Pretax operating margin decreased from 35.2% to 29.1% primarily as the result of the reduced high-margin multiclient sales in North America.

This excerpt taken from the SLB 8-K filed Jul 18, 2008.

WesternGeco

Second-quarter revenue of $671 million decreased 1% over the prior quarter but was 1% higher than the same period last year. Pretax operating income of $196 million was flat sequentially and 9% lower year-on-year.

Sequentially, Multiclient revenue increased on additional pre-commitments for wide-azimuth surveys in North America as well as pre-commitments on new projects in Norway and Australia, although these increases were partially offset by lower late sales of narrow-azimuth data in North America. Land revenue increased due to improved utilization and productivity in North Africa partially offset by reduced activity in Latin America. Data Processing revenue also recorded a sequential increase—primarily in Europe and India. However, these increases were more than offset by decreased Marine revenue resulting from seasonal vessel transits and vessel transfers to multiclient surveys.

Pretax operating margin was essentially flat sequentially at 29.2% as increased contributions from higher Land and Data Processing activity were partially offset by the impact of the Multiclient sales mix in North America.

During the quarter, Schlumberger acquired Integrated Exploration Systems (IES), the Aachen, Germany-based technology leader in petroleum systems modeling. IES PetroMod® proprietary software models basin evolution through geological time to predict the generation, migration and entrapment of hydrocarbons. IES technology will be combined with other Schlumberger services to create the new Integrated Services for Exploration software suite designed to mitigate exploration risk.

In addition, Schlumberger acquired Staag Imaging, L.P., a Houston-based provider of leading-edge depth imaging technologies for seismic data processing. Staag will become part of the Schlumberger WesternGeco business segment. The company is one of the first providers of a commercial full waveform inversion technique that uses the two-way wave equation method to build highly accurate velocity models of the subsurface, including complex geology formations such as salt bodies. The accurate models it produces can then be used to exploit the power of WesternGeco complementary high-resolution reverse time migration capability.

The improved prospect imaging of the Q-Land* Chaves II multiclient survey in New Mexico led to the survey being expanded from 74 to 120 square miles as a result of additional client prefunding.

WesternGeco commenced phase IV of the E-Octopus wide-azimuth multiclient survey in the ultra-deepwaters of the US Gulf of Mexico. The survey is designed to assist operators in imaging and identifying subsalt prospects, and is due to complete acquisition in early Q3 2008.

WesternGeco Electromagnetics continued acquisition of marine magnetotelluric (MMT) data over wide-azimuth multiclient seismic data sets in the US Gulf of Mexico. Approximately 7,000 km of information has been acquired, making this the largest MMT data set recorded to date. The data are now being introduced into integrated imaging product offerings. Additionally, WesternGeco Electromagnetics launched the Toisa Vigilant, a second controlled-source electromagnetics (CSEM) acquisition vessel which will commence work in the North Sea in Q3 2008.


This excerpt taken from the SLB 10-Q filed Apr 23, 2008.

WESTERNGECO

First-quarter revenue of $676 million decreased 15% over the prior quarter and 4% compared to the same period last year. Pretax operating income of $196 million decreased 28% sequentially and 26% year-on-year.

Sequentially, Marine revenue increased as both vessel utilization and productivity improved following the vessel dry-docks and the seasonal transits of the prior quarter. Data processing also recorded a sequential increase in revenue, but these increases were more than offset by a significant decrease in Multiclient revenue in North America following the record sales in the previous quarter. The Gulf of Mexico lease sale late in the first quarter, coupled with the increased cost of wide-azimuthal data sets that are fast becoming the norm for new multiclient purchases, delayed new sales activity until customers absorb the results of the March leasing round. Land revenue also declined following project completions in North Africa and lower demand in the Middle East.

Pretax operating margin declined sequentially from 34.1% to 29.1% as the increase in Marine was more than offset by the decline in high-margin Multiclient sales.

Year-on-year Marine revenue grew due to higher efficiency, increased pricing and the addition of the seventh Q-vessel in the fleet. Data Processing also recorded a growth primarily driven by increased demand in North America and Africa. However, these increases were more than offset by the decline in Multiclient sales in North America and lower crew count on Land.

Year-on-year pretax margin declined from 37.7% to 29.1% primarily due to reduced sales of high-margin multiclient data and the lower revenue on Land.

This excerpt taken from the SLB 8-K filed Apr 18, 2008.

WesternGeco

First-quarter revenue of $676 million decreased 15% over the prior quarter and 4% compared to the same period last year. Pretax operating income of $196 million decreased 28% sequentially and 26% year-on-year.

Sequentially, Marine revenue increased as both vessel utilization and productivity improved following the vessel dry-docks and the seasonal transits of the prior quarter. Data processing also recorded a sequential increase in revenue, but these increases were more than offset by a significant decrease in Multiclient revenue in North America following the record sales in the previous quarter. Land revenue also declined following project completions in North Africa and lower demand in the Middle East.

Pretax operating margin declined sequentially to 29.1% as the increase in Marine was more than offset by the decline in high-margin Multiclient sales.

Sonatrach awarded WesternGeco a Q-Land* acquisition and data processing project over the Hassi R’Mel field covering 2,225 sq km – the largest Q-Land survey to date. Acquisition commenced earlier in the quarter and the data will be processed at the recently opened WesternGeco center in Algiers.

In the Norwegian sector of the North Sea, StatoilHydro ASA awarded WesternGeco multicomponent acquisition projects using Q-Seabed* technology. The system will deliver superior imaging and inversion results using the low-frequency signals made possible by the system’s high-fidelity technology. The projects will cover parts of the Oseberg Sør and Gullfaks fields. At Oseberg Sør, Q-Seabed technology will acquire multiazimuth data through the use of the system’s active cable lengths. At Gullfaks, the survey will be used as a reservoir monitoring tool to optimize production.

Elsewhere in the Norwegian sector of the North Sea, StatoilHydro ASA awarded WesternGeco integrated 4D Q-Marine* acquisition, processing and inversion projects covering the Norne and Heidrun fields including the Epsilon structure with the total area of the award exceeding 500 sq km. This will be the fifth survey using Q-Marine technology at Norne and the third at Heidrun. The surveys are part of ongoing efforts to maximize recovery from both fields through identification of unswept and partially swept areas.

WesternGeco commenced the previously announced fourth phase of the multiclient E-Octopus wide-azimuth acquisition program in the US Gulf of Mexico. In parallel with these projects, WesternGeco Electromagnetics is completing 3D marine magnetotelluric inversion and interpretation using a dedicated computer cluster in Houston. This first multi-measurement constrained imaging project involves significant interpretation iterations of magnetotelluric, gravity and Q-Marine seismic data sets to produce a more precise integrated sub-surface model – thus reducing overall risk in this challenging sub-salt environment.


These excerpts taken from the SLB 10-K filed Feb 13, 2008.

WesternGeco

 

Revenue from all services is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable and collectibility is reasonably assured. Revenue from contract services performed on a dayrate basis is recognized as the service is performed. Revenue from other contract services, including pre-funded multiclient surveys, is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a non-transferable basis. Revenue on completed multiclient data surveys is recognized upon obtaining a signed licensing agreement and providing customers access to such data.

 

WesternGeco

 

STYLE="margin-top:0px;margin-bottom:0px">Revenue from all services is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable and collectibility is reasonably assured.
Revenue from contract services performed on a dayrate basis is recognized as the service is performed. Revenue from other contract services, including pre-funded multiclient surveys, is recognized as the seismic data is acquired and/or processed on
a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a
non-transferable basis. Revenue on completed multiclient data surveys is recognized upon obtaining a signed licensing agreement and providing customers access to such data.

SIZE="1"> 

This excerpt taken from the SLB 8-K filed Jan 18, 2008.

WesternGeco

Full-year 2007 revenue of $2.96 billion increased 20% versus 2006. Pretax operating income of $1.06 billion in 2007 was 31% higher than 2006. Pretax operating margin reached 35.8%—an increase of 299 bps in 2007 versus 2006—demonstrating continued high vessel utilization, pricing increases in Marine and accelerating demand for exploration-driven seismic services. Q-Technology* revenue reached $1.14 billion, representing 38% of 2007 full-year revenue.

Fourth-quarter revenue of $798 million increased 1% over the prior quarter and increased 11% compared to the same period last year. Pretax operating income of $272 million decreased 11% sequentially but increased 4% year-on-year.

Sequentially, Multiclient revenue increased 83% due to higher sales in North America, Africa and Asia. However, this increase was largely offset by a decrease in Marine revenue due to vessel transits between projects, several vessel dry docks, and lower vessel utilization. Overall vessel utilization in 2007 was 93%.

Pretax operating margin declined sequentially to 34.1% as the high-margin Multiclient activity was more than offset by the lower Marine vessel utilization.

Eni awarded WesternGeco two Q-Marine* acquisition and processing contracts over their recently acquired acreage in Angola and Mozambique. The Angola survey will cover a base area of at least 2,200 sq km—with options to extend by a further 800 sq km—and the Mozambique survey will cover an area of 1,040 sq km.

Following the successful 3D seismic survey acquired offshore Alaska in the Chukchi Sea, WesternGeco used the marine vessel M/V Gilavar to complete the first open-water towed-streamer 3D survey in the US sector of the Beaufort Sea for Shell Offshore Inc.

In Egypt, Apache awarded WesternGeco an integrated Q-Land* single-sensor technology acquisition and processing contract for 460 sq km in the Salloum, and 800 sq km in the West Ghazalat concessions.

WesternGeco completed a Controlled-Source ElectroMagnetics (CSEM) survey for Eni offshore Norway using the CSEM vessel Toisa Valiant.

WesternGeco and TGS-NOPEC Geophysical Company ASA (TGS) signed a cooperative agreement to acquire and process a minimum of 650 Outer Continental Shelf blocks covering approximately 15,000 sq km of multiclient wide-azimuth (WAZ) 3D data in the Mississippi Canyon and Atwater Valley areas of the Gulf of Mexico. Under this agreement, WesternGeco and TGS will share project costs and revenues equally. Q-Technology will be used for data acquisition and processing with the surveys significantly complementing the WesternGeco library of multiclient WAZ data. While both parties will market this product, TGS will be responsible for sales. WesternGeco has acquired more than 950 Outer Continental Shelf blocks of WAZ data since July 2006 and has an additional 1,300 blocks planned for 2008.


This excerpt taken from the SLB 10-Q filed Oct 24, 2007.

WESTERNGECO

Nine-month revenue of $2.17 billion was 23% higher compared to the same period last year. Pretax income of $788 million increased 43% year-on-year. Growth was driven primarily by higher conventional and Q-Marine pricing and by the addition of the seventh Q vessel, higher Multiclient sales predominantly in North America together with higher pricing and increased demand for Data Processing services.

This excerpt taken from the SLB 8-K filed Oct 19, 2007.

WesternGeco

Third-quarter revenue of $794 million increased 19% sequentially and was 20% higher compared to the same period last year. Pretax operating income of $306 million increased 42% sequentially and 32% year-on-year.

Sequentially, Marine revenue increased due to higher vessel utilization following seasonal transits and scheduled dry dock inspections in the prior quarter, full-quarter utilization of the seventh Q* vessel, and improved pricing for conventional and Q-Marine* surveys. Data Processing revenue also increased driven primarily by higher sales in Europe, North America and Asia. These increases were partially offset by lower Multiclient sales while Land activity remained flat.

Pretax operating margins increased by a robust 611 bps to reach 38.6% driven by higher operating leverage in Marine and higher-margin Data Processing activities.

Shanghai Petroleum Co., Ltd. awarded WesternGeco the first Q-Marine acquisition survey in China, which was completed in August using the vessel Geco Searcher to cover an area of more than 380 sq km.

In Mexico, Pemex awarded an integrated Q-Marine acquisition and processing survey covering 7,050 sq km of the Temoa field. Acquisition began in July 2007 and is expected to be completed in December 2007.

In Africa, Petrobras awarded WesternGeco an integrated Q-Marine acquisition and processing survey to cover 1,200 sq km in Angola Block 6. The survey was completed ahead of schedule.

WesternGeco recently completed a 1,100 sq km 3D land seismic acquisition project for Abu Dhabi National Oil Company in South East Abu Dhabi. The survey area consisted of 180-m high sand dunes and the survey was completed three months ahead of schedule.

During the quarter, Schlumberger acquired a minority interest in PetroMarker, a Norwegian-based developer of marine electromagnetics measurements and interpretation technology. This acquisition will complement the WesternGeco integration of seismic and electromagnetics services designed to introduce a step change in reservoir definition.

In the US Gulf of Mexico, WesternGeco announced the expansion of the E-Octopus wide-azimuth towed- streamer survey with the fourth and fifth phases scheduled to commence in January 2008. These surveys offer the unique advantage of more precise base and edge-of-salt definition through multi-measurement constrained imaging—the integration of magnetotellurics, gravity and Q-Marine data. As part of the E-Octopus survey, WesternGeco has developed the world’s first onboard prestack wave-extrapolation (WEM) depth migration using proprietary Q-Xpress* techniques to provide quick-look migrated data volumes for interpretation, quality control, illumination, and to meet in-fill acquisition requirements. The E-Octopus final deliverables will include the latest state-of-the-art technologies such as anisotropic multi-azimuthal tomography, wavefield extrapolation demultiple and shot domain WEM with angle gathers.


This excerpt taken from the SLB 10-Q filed Jul 25, 2007.

WESTERNGECO

Six-month revenue for WesternGeco of $1.37 billion was 25% higher compared to the same period last year. Year-on-year revenue increased primarily in Multiclient, Marine and Data Processing. Multiclient sales increased predominantly in North America, reflecting a strong Multiclient market and the success of large reprocessing and wide-azimuth projects. The increase in Marine was due to higher pricing on both Q and conventional surveys. Data Processing was ahead driven by higher pricing and an improved ability to bundle data processing services with acquisition services.

Pretax income of $482 million improved by $164 million year-on-year, reflecting strong multiclient margins and increased prices in Marine and Data Processing.

 

23


This excerpt taken from the SLB 8-K filed Jul 20, 2007.

WesternGeco

Second-quarter revenue of $665 million was 6% lower sequentially but 18% higher compared to the same period last year. Pretax operating income of $216 million decreased 19% sequentially but increased 28% year-on-year.

Sequentially, Marine increased due to higher production and pricing despite seasonal transits and scheduled dry dock inspections. Data Processing revenue also increased driven primarily by higher sales in North America, Europe, Africa and the Middle East while Land revenue remained flat. However, the improvement in Marine and Data Processing revenues was more than offset by the normal seasonal decline in Multiclient revenues.

Pretax operating margins declined to 32.5% due to the lower Multiclient sales and to crew costs associated with certain Land projects.

The seventh Q-Marine* vessel, the Western Spirit, was launched near the end of the quarter. Equipped with DSC* Dynamic Spread Control—the new WesternGeco automated vessel, source and streamer steering technology that enables more accurate survey positioning—the Western Spirit began 4D survey work in the North Sea for Statoil.

Offshore India, ONGC awarded WesternGeco an integrated Q-Marine acquisition, processing and post-stack inversion contract through the 2009-2010 field season. This fourth long-term Q-Marine contract for ONGC underscores their commitment to the value delivered by Q-Technology*.

Offshore Angola, Sonangol Pesquisa & Produção awarded WesternGeco a contract for a Q-Marine acquisition and processing survey over 1,800 km2. This is the first Q-Marine survey to be acquired for Sonangol.

In North Africa, Q-Land* activity saw further success with the award of a second 350-km2 survey for Sirte Oil Company in Libya, and a 300-km2 survey for First Calgary Petroleum in the Berkine basin in Algeria.

Three new technologies for land operations were introduced during the quarter. The Desert Explorer* DX-80 vibroseis unit complements the Q-Land integrated acquisition and processing system with low distortion across a broad bandwidth; the MD Sweep design methodology enables a vibrator to produce higher energy at low frequencies; and the SHARP technique increases productivity of slip-sweep data acquisition without suffering quality degradation due to harmonic noise.

Under a technical collaboration agreement with Petrobras, WesternGeco has started acquisition of a controlled source electromagnetics survey in the Santos basin offshore Brazil. This survey will include both 2D and 3D acquisition, processing and interpretation.

The third phase of the E-Octopus wide-azimuth survey commenced in May and now extends to cover approximately 10,540 km2 of the Green Canyon area in the US Gulf of Mexico. This phase, which is highly prefunded, has deployed a total of 20 streamers from two Q-Marine vessels, with the data processed using the proprietary Q-Xpress* technique to produce the world’s largest onboard prestack depth migration. MMCI* Multimeasurement-Constrained Imaging workflow technology will be applied to selected areas of the survey to improve delineation of base-of-salt events for enhanced subsalt imaging. MMCI is a WesternGeco proprietary workflow that integrates marine magnetotelluric, gravity and seismic measurements. The E-Octopus project is part of the family of E-surveys that benefit from the most advanced acquisition and processing technologies in the industry.


This excerpt taken from the SLB 10-Q filed Apr 25, 2007.

WESTERNGECO

First-quarter revenue of $706 million decreased 2% sequentially but increased 33% compared to the same period last year. Pretax operating income of $266 million increased 2% sequentially and 79% year-on-year.

Sequentially, Multiclient continued to register growth due to high demand for E-surveys in the US Gulf of Mexico. However, this growth was more than offset by the decline in Marine due to vessel transits; lower Land

 

18


Table of Contents

activity associated with project completions and new project start-up delays; together with lower Data Processing revenue following the reassignment of resources toward processing Multiclient surveys.

The year-on-year revenue increase was led by Multiclient, which increased 67%, arising predominantly from sales of E-projects in North America. Marine increased with higher pricing on both Q and conventional technology while Land increased due to improved pricing, technology, project start-ups and new crew mobilisations. Data Processing growth was driven by increased activity and pricing gains.

Pretax operating margins improved sequentially by 142 bps to reach 37.7% driven by increased higher margin Multiclient sales in North America and improved efficiencies in Land and Data Processing.

The year-on-year increase in pre-tax income was led by Multiclient due to significant activity within the Gulf of Mexico on E-Projects as well as in Africa. Marine and Land improved primarily due to pricing gains and increased activity while Data Processing increased due to additional multiclient reprocessing in North America.

This excerpt taken from the SLB 8-K filed Apr 20, 2007.

WesternGeco

First-quarter revenue of $706 million decreased 2% sequentially but increased 33% compared to the same period last year. Pretax operating income of $266 million increased 2% sequentially and 79% year-on-year.

Sequentially, Multiclient continued to register growth due to high demand for E-surveys in the US Gulf of Mexico. However, this growth was more than offset by the decline in Marine due to vessel transits; lower Land activity associated with project completions and new project start-up delays; together with lower Data Processing revenue following the reassignment of resources toward processing Multiclient surveys.

Pretax operating margins improved sequentially by 142 bps to reach 37.7% driven by increased higher margin Multiclient sales in North America and improved efficiencies in Land and Data Processing.

The second phase of acquisition in the E-Octopus wide-azimuth towed-streamer survey in the Gulf of Mexico neared completion. Located in the deepwater Walker Ridge and Keathley Canyon areas, the E-Octopus project is part of the family of E-surveys, which utilize the most advanced acquisition and processing technologies in the industry. The family also includes reprocessed surveys such as the E-Cat and E-Dog deepwater projects, and the shallow-water shelf E-Dragon project offshore Louisiana.

BP Exploration extended the current contract in Algeria to acquire a third high-quality exploration survey using Q-Land* technology. Utilizing the unique single-sensor acquisition and processing technology of Q-Land, high-quality 3D migrated images from more than 23,000 channels will be delivered shortly after survey completion.

In the Turkish sector of the Black Sea the Western Pride completed a Q-Marine* exploration survey for Turkiye Petrolleri A.O. This high-quality survey over the deepwater Sinop and Kozlu blocks was initially 4,500 sq km but was extended in size by a further 40%. This marks the fourth Q-Marine survey in the Black Sea.

In Nigeria, Total contracted WesternGeco to carry out a high-resolution 3D survey using Q-Marine acquisition and processing. The two-month survey will be acquired with the vessel Western Pride. The specifications are such that the survey is designed as a baseline for future 4D repeat monitor surveys.


This excerpt taken from the SLB 10-K filed Feb 16, 2007.

WesternGeco

 

Revenues from all services are recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable and collectibility is reasonably assured. Revenues from contract services performed on a dayrate basis are recognized as the service is performed. Revenues from other contract services, including pre-funded multiclient surveys, are recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a non-transferable basis. Revenues on completed multiclient data surveys are recognized upon obtaining a signed licensing agreement and providing customers access to such data.

 

This excerpt taken from the SLB 8-K filed Jan 19, 2007.

WesternGeco

Full-year 2006 revenue of $2.47 billion increased 49% versus 2005. Pretax operating income of $853 million in 2006 was 170% higher than 2005. Pretax operating margins grew strongly by 1,548 bps in 2006 versus 2005, demonstrating accelerating demand for exploration-driven seismic services. Marine vessel utilization of 99% in 2006 versus 88% in 2005, pricing growth exceeding 50%, and robust demand for Q-Technology* all contributed to this growth. Overall Q-Technology revenue reached $726 million, representing 29% of 2006 full-year revenue, an increase of 82% over 2005. In response to rapid growth in demand for Q-Technology for exploration and production, WesternGeco commissioned construction of the eighth and ninth Q-Marine* vessels, to be delivered in 2008 and 2009 respectively. In addition, WesternGeco approved the deployment of the sixth and seventh Q-Land* crews in 2007.

Fourth-quarter revenue of $721 million was 9% higher sequentially and 55% higher compared to the same period last year. Pretax operating income of $273 million improved 13% sequentially and 149% year-on-year.

The sequential revenue increase was driven by the traditionally strong fourth-quarter Multiclient sales. Land increased with higher crew activity across all regions and the deployment of new crews in the Middle East and North Africa. Data Processing also increased due to higher activity in Asia and Europe and an increase in proprietary third-party processing activity in North America following a shift of resources from multiclient surveys. Marine revenue decreased with the deployment of additional resources on phase two of E-Octopus, the world’s first multiclient wide-azimuth survey in the US Gulf of Mexico.

Pretax operating margins improved sequentially by 116 bps to reach 37.9% driven by higher Multiclient sales in Africa and North America and higher crew utilization in Land. This was offset by the assignment of two vessels to the E-Octopus survey and higher costs in Data Processing.

Statoil awarded WesternGeco a 4D amplitude-variation-with-offset (AVO) inversion contract for seismic reservoir monitoring on their four Q-Marine 4D North Sea surveys acquired by WesternGeco over the past five years. Reservoir Seismic Services in Stavanger will integrate the Q-Marine measurements with Ødegaard advanced surface seismic data inversion software into the 4D simultaneous AVO workflow to quantify changes in reservoir properties as a result of hydrocarbon production.

During the quarter, WesternGeco began a pilot Q-Land acquisition project for Qatar Petroleum to achieve improved resolution of a carbonate reservoir. The extensive data acquisition program also included deployment of the Wireline Sonic Scanner* service to ensure recovery of slowness measurements in shallow formations—measurements unattainable with conventional technology. Simultaneous Q-Land and Q-Borehole* surveys were under evaluation to further extend bandwidth limits and improve signal quality.

In the central Gulf of Mexico, WesternGeco completed data acquisition of phase one of the E-Octopus multiclient wide-azimuth survey. Utilizing Q-Technology, the 11,072 sq km survey covers 475 deepwater blocks and provides a step change in subsalt imaging in this region. Due to demand generated by the upcoming lease sale and the need for dramatic improvements in subsurface illumination, the second phase of the project was accelerated in the fourth quarter of 2006 with the addition of a second Q-Marine vessel and two source vessels.

 

This excerpt taken from the SLB 10-Q filed Oct 25, 2006.

WESTERNGECO

 

Nine month revenue for WesternGeco of $1.75 billion was 46% higher compared to the same period last year with all product lines contributing to the strong growth.

The strong increase in Marine revenue was mainly due to significantly higher vessel fleet utilization, continued strong demand for Q-Marine technology coupled with better pricing and terms and conditions on most contracts. Marine activity increased mainly in Europe, Asia, India, North America, North Africa and the Middle East. Land increased primarily in North Africa and, to a lesser extent, in South America. Multiclient sales increased in North America, reflecting a strong multiclient market and the success of large reprocessing projects. Data Processing increased significantly, predominantly in India and North Africa.

Pretax income of $580 million improved by $373 million year-on-year. The income growth was mainly attributable to Marine with higher Q-activity, improved pricing and contractual terms and increased Multiclient sales with strong margins.

 

This excerpt taken from the SLB 8-K filed Oct 20, 2006.

WesternGeco

Third-quarter revenue of $659 million was 17% higher sequentially and 51% higher compared to the same period last year. Pretax operating income of $242 million improved 35% sequentially and 183% year-on-year.

The sequential revenue increase was driven by significant Multiclient sales arising from the E-Dog survey in North America as well as Multiclient sales in other regions following the seasonal low of the second quarter. Marine revenue increased through higher pricing and utilization, which reached 97% during the quarter, with the bulk of the marine fleet operating in Asia, Europe and North America. Land revenue declined due to weather-related shutdowns in South America and the Middle East coupled with the completion of projects in Saudi Arabia. During the quarter, WesternGeco mobilized a new Q-Land* crew in Libya and relocated the Q-Land crew from Egypt to Qatar following the completion of projects in the Western Desert. Data Processing revenue decreased with a reduction in activity in North America where resources were focused on the processing of multiclient surveys.

Pretax operating margins improved sequentially by 482 bps to reach 36.8%. The higher utilization and improved pricing in Marine drove strong sequential improvement in pretax operating income. Multiclient margins increased on higher revenue following the seasonal reduction in activity during the second quarter. This growth was partially offset by Land due to lower utilization, while Data Processing remained flat.

In North America, WesternGeco completed the world’s largest and most complex depth migration project. This 20,250 sq km project named E-Dog extends over 800 blocks in the deepwater Gulf of Mexico and dramatically improves the sub-salt imaging in an area that has historically been technically challenging.

Contracts awarded during the quarter included a two-year extension of the Q-Marine* contract with India’s Oil and Natural Gas Corporation Ltd. to include additional exploration and development seismic programs, as well as a new contract with Petronas Carigali to conduct a number of Q-Marine surveys over various fields offshore Malaysia.

WesternGeco is conducting the first-ever 3D over/under configuration in the Norwegian sector of the Barents Sea for Statoil and its partners. This survey design, enabled through the unique capabilities of Q-Marine, extends the frequency bandwidth to better image the complex geology.

 

This excerpt taken from the SLB 10-Q filed Jul 27, 2006.

WESTERNGECO

 

Six months revenue for WesternGeco of $1.09 billion was 43% higher compared to the same period last year with all product lines contributing to the strong growth.

The strong increase in Marine was mainly due to significantly higher vessel fleet utilization, continued strong demand for Q-Marine technology coupled with better pricing and terms and conditions on most contracts. Marine activity increased principally in Asia, India, North America, North Africa and the Middle East regions.

Land acquisition revenue growth was mainly experienced in South America and North Africa with several new crews starting up in the current year to address higher demand. Multiclient sales increased mainly in Brazil, North America, Asia and the Caspian. Data Processing grew significantly with higher third party demand and increased activity with the establishment of a new Data Processing Center in Mumbai.

Six months pretax operating income of $338 million improved by $217 million year-on-year. The income growth was mainly attributable to Marine with higher Q-activity, improved pricing and contractual terms. Also contributing to the income improvement were Land acquisition due to higher active crew count and Data Processing due to increased activity levels.

 

This excerpt taken from the SLB 8-K filed Jul 21, 2006.

WesternGeco

Second-quarter revenue of $562 million was 6% higher sequentially and 47% higher compared to the same period last year. Pretax operating income of $180 million improved 13% sequentially and 211% year-on-year.

Sequentially, Marine revenue increased to record levels with the vessel fleet utilization at 89%. Q* vessel utilization remained substantially flat at 91%. WesternGeco commissioned its sixth Q-Marine* vessel during the quarter with the upgrade of the Western Monarch to address increased industry demand for Q-Marine technology. The vessel has a backlog of contracts through May 2007. Land acquisition revenue increased with new crews added in the North Africa and the Middle East regions, coupled with improved efficiencies in operations in the South America region. Data Processing revenue increased with higher activity in both Asia and India linked to the recently opened Mumbai data processing and reservoir services center. Seasonal declines in Multiclient revenue, although less than expected due to a late surge in sales in the US, partially offset sequential gains in Marine, Land, and Data Processing.

Pretax operating margins improved sequentially by 200 bps to reach 32%. This was primarily driven by Marine due to higher utilization and improved pricing, coupled with Land activity increases in the South America, North Africa, and the Middle East regions, together with high-margin Q-data processing. These improvements were partially offset by the seasonal decline in Multiclient.

During the quarter, Schlumberger acquired Copenhagen-based Ødegaard A/S, the leader of advanced surface seismic data inversion software. The company, which will become part of WesternGeco, specializes in applications of seismic data to determine rock parameters critical to better reservoir characterization and improved oil and gas recovery. The integration of surface seismic data with key Schlumberger petrophysical and electromagnetic measurement technologies will lead to reduced reservoir uncertainty, particularly in the smaller and more complex reservoir targets of the future.

Revenue backlog is at an all-time high of $1.2 billion, an increase of 35% over the previous quarter reflecting strong and sustained Marine, Land, Multiclient, and Data Processing market positions.

This excerpt taken from the SLB 10-Q filed Apr 27, 2006.

WESTERNGECO

 

First-quarter revenue of $530 million was 14% higher sequentially and 40% higher compared to the same period last year. Pretax operating income of $158 million improved 44% sequentially and $95 million year-on-year.

Marine revenue reached record levels in the quarter with vessel utilization attaining 97%, while pricing improved 58% versus the same period last year. This increased level of activity is attributable to continued strength in exploration seismic activity. Reflecting confidence in the exploration market, a seventh Q* vessel will be commissioned in the second quarter of 2007.

Land acquisition revenue increased sequentially due to new crews being added in Russia and Chile, as well as higher Q-Land* activity in Kuwait.

Data Processing sequential revenue declined slightly and Multiclient revenue remained at levels similar to the previous quarter.

Marine led year-on-year revenue growth with higher Q-vessel utilization augmented by improved pricing and contractual terms. Growth in Land, Multiclient and Data Processing revenues also contributed to the increase.

Multiclient sales in the first quarter of 2006 were $164 million compared to $141 million in the prior year. Approximately 65% of the multiclient surveys sold in 2006 has no net book value due to prior amortization of capitalized costs, compared to 70% in 2005.

Sequential improvement in pretax operating income was mainly in Marine due to higher utilization and improved pricing. Land acquisition also improved due to the higher active crew count. Overall pretax operating margins reached a record level of 29.9%.

 

This excerpt taken from the SLB 8-K filed Apr 21, 2006.

WesternGeco

First-quarter revenue of $530 million was 14% higher sequentially and 40% higher compared to the same period last year. Pretax operating income of $158 million improved 44% sequentially and $95 million year-on-year.

Sequentially, Marine revenue increased to record levels with vessel utilization improving to 97% for the quarter, while pricing improved 58% versus the same period last year. This increased level of activity is attributable to continued strength in exploration seismic activity. Reflecting our confidence in the exploration market, a seventh Q* vessel will be commissioned in the second quarter of 2007.

Land acquisition revenue increased sequentially due to new crews being added in Russia and Chile, as well as higher Q-Land* activity in Kuwait.

Data Processing sequential revenue declined slightly and Multiclient remained at levels similar to the previous quarter.

Marine led year-on-year revenue growth with higher Q-vessel utilization augmented by improved pricing and contractual terms. Growth in Land, Multiclient and Data Processing revenues also contributed to the increase.

Sequential improvement in pretax operating income was mainly in Marine due to higher utilization and improved pricing. Land acquisition also improved due to the higher active crew count. Overall pretax operating margins reached a record level of 29.9%.

Q-vessel utilization improved from 92% in the previous year to 100% in the current year. Overall Q revenue was 91% higher than the same quarter of last year.

Revenue backlog is at an all-time high of $887 million reflecting strong and sustained Marine, Land, Multiclient and Data Processing market positions.

Highlights:

 

    WesternGeco commenced the acquisition of a new multiphase Q-Marine* Multiclient survey in the Walker Ridge area of the Gulf of Mexico. The Q-Technology* application and Kirchhoff/Wavefield Extrapolation Migration processing will deliver an improved high-resolution data set to address the sub-salt imaging challenges. The project is significantly pre-funded.

 

    In Mumbai, India, WesternGeco opened a new data processing and reservoir services center. The new center, staffed with more than 40 geologists and geophysicists, is the second most powerful computing facility for WesternGeco worldwide. The center is equipped to provide customers with a full suite of advanced data processing services, including depth imaging and reservoir seismic services such as reservoir characterization and 4D (time-lapse) processing and analysis.


This excerpt taken from the SLB 10-K filed Feb 24, 2006.

WesternGeco

 

Revenues from all services are recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable and collectibility is reasonably assured. Revenues from contract services performed on a dayrate basis are recognized as the service is performed. Revenues from other contract services, including pre-funded multiclient surveys, are recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a non-transferable basis. Revenues on completed multiclient data surveys are recognized upon obtaining a signed licensing agreement and providing customers access to such data.

 

This excerpt taken from the SLB 8-K filed Jan 20, 2006.

WesternGeco

 

Operating revenue for 2005 was $1.66 billion versus $1.24 billion in 2004. Pretax operating income in 2005 was $317 million versus $124 million in 2004. This strong performance was mainly attributable to the continued market acceptance of Q* technology, a higher level of Multiclient sales and improved operating leverage in Marine acquisition.

 

Fourth-quarter revenue of $464 million was 6% higher sequentially and grew 39% compared to the same period of last year.

 

Sequentially, revenue from Multiclient sales grew significantly, primarily in North America due to a larger number of blocks in the Gulf of Mexico coming up for renewal and the pending first quarter lease sale. Multiclient sales also increased in West Africa, the Caspian and Asia—indicating a worldwide interest in exploration.

 

Marine revenue declined in the North Sea, Canada and Russia as a result of the winter season in the Northern Hemisphere affecting activity. This resulted in a number of vessels transiting to other areas, with transit revenues deferred and recognized over the term of the contract. The seasonal decline was partly offset by strong activity in Asia with three conventional vessels and three Q-vessels operating in the region at improved pricing and utilization levels. As a result of the transits, vessel utilization decreased slightly to 88% from 92% in the previous quarter.

 

Data Processing was consistent with higher acquisition activity. Land acquisition activity was flat from the previous quarter.

 

Revenue backlog reached an all-time high of $790 million versus $656 million at the end of the previous quarter, reflecting increasing exploration and production budgets in 2006.

 

Pretax operating income of $110 million improved 29% sequentially and grew by $67 million year-on-year. The strong sequential growth resulted from higher Multiclient sales and transfer fees. This improvement was partly offset by higher transit days.

 

Q technology revenues reached $399 million in 2005, more than doubling the $162 million achieved in 2004. A growth rate higher than 80% is expected in 2006.

 

This excerpt taken from the SLB 10-Q filed Oct 27, 2005.

WESTERNGECO

 

Nine months revenue for WesternGeco of $1.2 billion was 32% higher compared to the same period last year. Marine, Land, Multiclient and Data Processing all experienced year-on-year revenue increases. The increase in Marine was attributable to higher vessel utilization coupled with better pricing and better terms and conditions on most contracts. Marine activity increased mainly in Europe, Asia, North America, South America and the Caspian but was partially offset by lower activity in Mexico following the transfer of vessels to other regions. Land increased mainly in Middle East with several additional crews active in the current year, higher activity in Europe and in South America, partially offset by Mexico and Malaysia. Multiclient sales increased 13% to $345 million. This increase was mainly in North America from higher sales in Alaska, in US Land and in Canada, partially offset by lower sales in the Gulf coast. Multiclient sales also increased in Asia, Europe, West Africa and the Caspian. Data Processing increased due to higher third party processing in North America as well as higher activity in Brazil, Russia, the Middle East and in Asia, partially offset by lower activity in Mexico.

 

Pretax operating income of $207 million improved by $125 million year-on-year. Marine, Land, Multiclient and Data Processing all experienced increases due to higher revenue, better pricing and utilization, partly mitigated by higher operating costs. In addition, approximately 67% of Multiclient sales in the current period had no net book value due to the prior amortization of capitalized costs, versus 54% in the prior period.

 

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