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Schlumberger Loses $93.3 Million

July 25, 2001

NEW YORK (AP) _ Schlumberger Ltd., the world’s second-largest oil services company, reported a second-quarter loss of $93.3 million after taking a hefty charge to account for acquisitions and the sale of certain businesses.

The New York-based company said Wednesday it lost 16 cents a share in the April-June period, compared with earnings of $155.9 million, or 27 cents a share in the second quarter of last year.

Before one-time items, but including goodwill and amortization, Schlumberger earned 32 cents a share. Wall Street had been expecting comparable earnings of 38 cents per share, according to a consensus estimate of analysts by Thomson Financial/First Call.

But revenue climbed 52 percent from $3.69 billion during the quarter ended June 30, up from $2.42 billion during the same period last year.

In afternoon trading on the New York Stock Exchange, shares of Schlumberger were up 30 cents to $54.

Schlumberger took a $280 million charge due in large part to its planned sale of parts of its Resource Management Services division.

In April, the company finalized its roughly $5 billion acquisition of Sema PLC, a London-based information technology services company. The acquisition enlarges Schlumberger’s systems-integration business, particularly in the development of smart cards, or wallet-sized devices embedded with microchips.

``We have been able to identify $140 million of cost synergies which we expect to realize by mid 2002,″ the company’s chairman and chief executive officer Euan Baird said in a prepared statement.

Baird also said that gas drilling in North America was being affected by weaker demand triggered by a slowdown in economic activity.

But he added the company expects an increase in gas drilling once the U.S. economy recovers.

For the first half of the year, Schlumberger earned $142.6 million, or 25 cents a share, down from $292 million, or 51 cents a share. Sales rose to $6.69 billion during the first six months of 2001, up from $4.64 billion during the same period last year.

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