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SCL: Schlumberger Limited: Schlumberger Announces Fourth-Quarter and Full-Year 2013 Results



  SCL: Schlumberger Limited: Schlumberger Announces Fourth-Quarter and
  Full-Year 2013 Results

UK Regulatory Announcement

                             Schlumberger Limited

Full-Year Results

LONDON

Schlumberger Limited (NYSE:SLB) today reported full-year 2013 revenue from
continuing operations of $45.27 billion versus $41.73 billion in 2012.

Full-year 2013 income from continuing operations attributable to Schlumberger,
excluding charges and credits, was $6.33 billion, representing diluted
earnings-per-share of $4.75 versus $4.01 in 2012.

Fourth-Quarter Results

Fourth-quarter 2013 revenue was $11.91 billion versus $11.61 billion in the
third quarter of 2013, and $11.08 billion in the fourth quarter of 2012.

Income from continuing operations attributable to Schlumberger, excluding
charges and credits, was $1.79 billion—an increase of 4% sequentially and an
increase of 28% year-on-year. Diluted earnings-per-share from continuing
operations, excluding charges and credits, was $1.35 versus $1.29 in the
previous quarter, and $1.04 in the fourth quarter of 2012.

Schlumberger recorded charges of $0.09 per share in the fourth quarter of 2013
versus $0.06 per share in the fourth quarter of 2012. Schlumberger did not
record any charges or credits in the third quarter of 2013.

Oilfield Services revenue of $11.91 billion was up 3% sequentially and
increased 7% year-on-year. Oilfield Services pretax operating income of $2.60
billion was up 4% sequentially and increased 23% year-on-year.

Schlumberger CEO Paal Kibsgaard commented, “We ended 2013 with revenue of more
than $45 billion, up 8%, and growing for the fourth consecutive year.
International Area revenue grew by $3.2 billion, or 11%, from higher
exploration and development activity--both offshore and in key land markets.
In North America, we demonstrated continued resilience to the challenges of
the land markets by growing the business by close to $400 million, or 3%,
aided by our strong position in the offshore market, particularly in the US
Gulf of Mexico. Full-year pretax operating income grew 15%, with International
delivering a 24% increase and International margin expanding by more than 200
basis points for the second consecutive year to reach 22.2% while still
posting a margin of 19.7% in North America.

Our fourth-quarter results were driven by solid activity in key international
markets and strong year-end product, software and multiclient seismic sales in
almost all areas. Growth was strongest internationally, where revenue set a
new record high, but all Areas recorded sequential growth underpinned by the
quality and efficiency of our execution. Overall results were, however,
impacted by the temporary shutdown of activity in South Iraq and seasonal
slowdowns in North America, the North Sea, Russia and China.

Geographical results were led by the Middle East & Asia, with continuing
strength in the key markets of Saudi Arabia and the United Arab Emirates as
well as in exploration activity in Malaysia and Australia. Deepwater
exploration work and strong project management activity in Argentina and
Ecuador led Latin America higher, while Europe/CIS/Africa made progress
through significant activity in Angola, Azerbaijan and Turkmenistan. In North
America, deepwater activity in the Gulf of Mexico continued to be strong,
while on land increased service intensity, improved efficiency, market share
gains, and new technology uptake was again offset by further pricing weakness
in most product lines.

Among the Technologies, year-end sales most benefited the Production and
Reservoir Characterization groups. Software and multiclient license sales were
more than sufficient to offset seasonal effects in WesternGeco and Wireline
activity as seismic surveys and exploration drilling projects were completed
in northern regions. Underlying activity was robust for the Drilling Group on
international demand in key markets and grew in Mexico, Saudi Arabia and Iraq
for integrated project management work. New technology sales remained strong
across all groups, offering select opportunities for higher pricing in a
competitive international market.

The overall global economic outlook continues largely unchanged, with
fundamentals continuing to improve in the U.S., and Europe seemingly set for
stronger growth. These positive effects should overcome lower growth in some
developing economies and support a continuing rebound in the world economy.
Largely as a result, forecasts for oil demand in 2014 have been revised
upwards to reach the highest demand growth in several years. Supply is
expected to keep pace with demand, with the market, therefore, remaining well
balanced. Natural gas prices internationally should be supported by demand in
Asia and Europe. In the U.S., we see no change in fundamentals, with any
meaningful recovery in dry gas drilling activity some way out in the future.

The quality of our results in 2013 was driven by strong new technology sales
and an unwavering focus on execution and resource management. With E&P
spending expected to grow further in 2014, led by international activity and
continuing strength in deepwater US Gulf of Mexico, we remain positive about
the year ahead on the back of a well-balanced business portfolio, wide
geographical footprint and strong operational, organizational, and executional
capability.”

Other Events

  * During the quarter, Schlumberger repurchased 11.9 million shares of its
    common stock at an average price of $89.67 per share for a total purchase
    price of $1.07 billion.
  * On January 16, 2014, the Board of Directors approved a 28% increase in the
    quarterly dividend. The next quarterly dividend, which will increase to
    $0.40 per share of outstanding common stock, is payable on April 11, 2014
    to stockholders of record on February 19, 2014.

                              Oilfield Services

Full-Year Results

Full-year 2013 revenue of $45.27 billion increased 8% over 2012 with the
International Areas growing by 11% and the North America Area by 3%. Revenue
grew for the fourth consecutive year setting a new record for the company.

On a segment basis, revenues from the Reservoir Characterization and Drilling
Groups increased 10% and 9%, respectively. The increase in Reservoir
Characterization revenue resulted from market share gains and higher
exploration activity in both offshore and key international land markets that
benefited Testing Services, WesternGeco, Wireline and Schlumberger Information
Solutions (SIS). Drilling Group revenue increased from robust demand for
Drilling & Measurement services as offshore drilling activity strengthened in
the US Gulf of Mexico, Sub-Saharan Africa, Russia and in the Middle East &
Asia Area. Revenue increased also in key international land markets in Saudi
Arabia, China and Australia on higher rig count. Production Group revenue was
up 8%, mostly from Well Intervention, Completions, Artificial Lift,
Schlumberger Production Management (SPM) and Well Services activities in the
international GeoMarkets.

By Area, International revenue of $30.93 billion increased $3.15 billion from
higher exploration and development activity in a number of GeoMarkets—both
offshore and in key land markets. The increase was led by the Middle East &
Asia Area, which grew 23% from an expanding portfolio of projects and
activities in Saudi Arabia, Iraq, and the United Arab Emirates; increased
seismic surveys together with exploration and development work across Asia;
and sustained land and offshore drilling activity in the Australasia and China
GeoMarkets. Europe/CIS/Africa Area increased 8%, led by the Russia and Central
Asia region on strong land activity in West Siberia and robust offshore
projects in Sakhalin. The Sub-Saharan Africa region also contributed to growth
with strong exploration and development activity. Latin America Area was 3%
higher, mainly due to solid progress on SPM projects in Ecuador and strong
Integrated Project Management (IPM) activity in Argentina. North America Area
revenue of $13.90 billion grew 3%, driven by offshore activity where revenue
was up 18%, while land revenue declined 2%. The increase in offshore revenue
resulted from higher drilling and exploration activity as the rig count grew
by 12%. Land businesses continued to experience pricing weakness in drilling,
stimulation and wireline services, although the effect of this was partially
offset by increased service intensity, improved efficiency, market share
gains, and new technology penetration.

Full-year 2013 pretax operating income of $9.34 billion increased $1.23
billion, or 15%, as International pretax operating income of $6.88 billion
increased 24% while North America pretax operating income of $2.7 billion was
flat year-on-year.

Pretax operating margin of 20.6% increased 119 basis points (bps)
year-on-year, as International pretax operating margin expanded 225 bps to
22.2% while North America pretax operating margin contracted 55 bps to 19.7%.
The expansion in International margin was due to increased high-technology
exploration, seismic and deepwater activity. Middle East & Asia margin posted
a 309 bps improvement to reach 25.0%, Europe/CIS/Africa increased by 132 bps
to 20.9%, and Latin America grew by 214 bps to 20.5%. North America margin
contraction was due to pricing weakness on land although this was partially
offset by continued expansion of offshore margin that recorded a five-year
high. By segment, Reservoir Characterization Group pretax operating margin
expanded 228 bps to 29.8%, Drilling Group increased by 156 bps to 19.1%, and
Production Group improved by 72 bps to 16.4%. Growth in pretax operating
margin for the Reservoir Characterization and Drilling Groups was the result
of higher-technology exploration activities in North America offshore and in
the international markets. Production Group margin expanded on improving
profitability in SPM, Completions and Artificial Lift but this was offset by
lower margin for Well Services as a result of pricing pressure—primarily in
North America.

Fourth-Quarter Results

Fourth-quarter revenue of $11.91 billion increased $298 million or 3%
sequentially, and grew 7% year-on-year. Approximately 75% of the sequential
revenue increase came from the year-end surge in product and software sales,
and 25% came from higher multiclient seismic sales. International Area revenue
of $8.15 billion grew $235 million or 3% sequentially, while North America
Area revenue of $3.65 billion increased $47 million or 1% sequentially.
Fourth-quarter revenue continued to set a new high for both North America and
the International Areas.

Sequentially, Reservoir Characterization Group revenue grew 1% to $3.25
billion, while Drilling Group revenue of $4.50 billion was 2% higher.
Production Group revenue increased 5% sequentially to $4.22 billion. The
increase in Reservoir Characterization Group revenue resulted mainly from
robust international end-of-year SIS software sales and an increase in
WesternGeco multiclient sales. This increase, however, was largely offset by a
sharp seasonal decline in WesternGeco Marine revenue on lower vessel
utilization following completion of surveys in Norway and Canada. Wireline
also declined sequentially on the conclusion of exploration projects in
Eastern Canada and East Africa together with the seasonal slowdown in Russia.
Drilling Group revenue increased on international demand for Drilling &
Measurements and M-I SWACO technologies in Mexico and Russia & Central Asia as
well as in the Middle East & Asia Area. Stronger IPM project activity in
Mexico, Saudi Arabia and Iraq also contributed to the increase. The increase
in Production Group revenue resulted primarily from stronger Completions and
Artificial Lift product year-end sales. Well Intervention Services declined
mainly in North America land, while Well Services revenue grew primarily from
higher activity in international markets. Well Services stage count in North
America land also increased, but revenue declined from persistent pricing
weakness as a result of the continuing hydraulic horsepower oversupply.

Sequentially by Area, Middle East & Asia led the increase with revenue of
$2.94 billion growing 5%, mainly from the continued increase in drilling
activity and the start of new IPM projects in Saudi Arabia; strong product
sales and increased seismic activity in the United Arab Emirates; strong
product and year-end software sales in Kuwait; strong land and offshore
exploration activity in the Australasia and Thailand & Myanmar GeoMarkets; and
increased WesternGeco marine vessel activity in the Brunei, Malaysia &
Philippines GeoMarket. The increase, however, was partially reduced by a
decline in revenue in Iraq from the temporary shut-down in operations linked
to a security incident. In Latin America, revenue of $2.00 billion increased
3%, led by Mexico and Central America on robust deepwater exploration in
addition to stronger land-based project activities. Strong IPM fracturing and
drilling activity in Argentina and solid progress on SPM projects in Ecuador
also contributed to the increase. Europe/CIS/Africa revenue of $3.21 billion
increased 1% mainly due to robust product and software sales across the Area
particularly in Continental Europe; significant testing and seismic activities
in Angola; and increased offshore seismic and drilling in Azerbaijan and
Turkmenistan. The increase, however, was partially reduced by seasonally lower
activity in Russia and decreased WesternGeco vessel utilization following the
seasonal transit of vessels out of the North Sea. North America revenue of
$3.65 billion increased 1% sequentially. Land continued to experience pricing
weakness in drilling, stimulation and wireline services, although the effect
of this was offset by increased service intensity, improved efficiency, market
share gains, new technology uptake and business expansion. Offshore revenue
declined following seasonal completion of seismic and exploration campaigns in
Eastern Canada while revenue in the US Gulf of Mexico grew on higher drilling
and testing activities.

Fourth-quarter pretax operating income of $2.60 billion was up 4%
sequentially, and increased 23% year-on-year. International pretax operating
income of $1.92 billion increased 4% sequentially, while North America pretax
operating income of $716 million declined 2% sequentially. Fourth-quarter
pretax operating income also set a new high, driven by the International
Areas.

Sequentially, pretax operating margin of 21.9% increased 37 bps, as
International pretax operating margin expanded 23 bps to 23.5%. Middle East &
Asia and Europe/CIS/Africa margins were steady at 26.1% and 22.6%,
respectively, while Latin America expanded 59 bps to reach 21.2% on
higher-margin exploration drilling and project activity. North America pretax
operating margin declined 67 bps to 19.6% due to a seasonal holiday slowdown
in activity and continued pricing weakness on land. Sequentially by segment,
Reservoir Characterization Group pretax operating margin expanded 132 bps to
31.7% due to strong end-of-year sales of SIS software and WesternGeco
multiclient licenses, while the pretax operating margins of the Drilling and
Production Groups were 19.6% and 17.3%, respectively.

Reservoir Characterization Group

Fourth-quarter revenue of $3.25 billion increased 1% sequentially, and grew 5%
year-on-year. Pretax operating income of $1.03 billion was 5% higher
sequentially, and increased 16% year-on-year.

Sequentially,  the increase in  revenue was mainly driven by robust
international end-of-year SIS software sales and an increase in WesternGeco
multiclient sales. These increases, however, were largely offset by the sharp
seasonal decline in WesternGeco Marine revenue on lower vessel utilization
following completion of surveys in Norway and Canada. Wireline also declined
sequentially on the completion of exploration projects in Eastern Canada and
East Africa, and the seasonal slowdown of activity in Russia.

Pretax operating margin of 31.7% increased 132 bps sequentially, and 309 bps
year-on-year. The sequential increase from strong end-of-year sales of SIS
software and WesternGeco multiclient licenses was partially offset by lower
WesternGeco Marine vessel utilization and decreased Wireline high-technology
activity following completion of exploration projects.

A number of technology highlights across the Reservoir Characterization Group
contributed to the fourth-quarter results.

Offshore India, Wireline MDT* modular formation dynamics tester and Saturn* 3D
radial probe technologies in combination with the InSitu Fluid Analyzer*
system were used for the Oil and Natural Gas Corporation (ONGC) to obtain
reservoir measurements in the Mumbai High South field. The larger flow area of
the Saturn elliptical probe allowed formation fluid sampling at a mobility
below 0.1 mD/cP, which enabled completion of a comprehensive formation test,
downhole fluid analysis and fluid sampling program in the low permeability
reservoir sections. The Saturn probe design also provided improvements in
operational efficiency, enabling ONGC to save up to 75% in fluid sampling time
compared with conventional formation testing methods.

In Indonesia, Wireline MDT modular formation dynamics tester packer
technologies were used for KrisEnergy to obtain interval pressure transient
testing data and fluid samples in an exploration well. The dual-packer
technique delivered excellent pressure transient data with minimal pressure
drop during the pump-out periods. The combination of MDT technology and the
InSitu Fluid Analyzer* system helped identify a gas-bearing zone and collect
PVT-quality gas samples for further analysis. The real-time monitoring
capability of the Wireline technologies enabled rapid decisions to achieve the
best quality reservoir data, all within a four-hour timeframe.

Offshore Atlantic Canada, Wireline deployed a suite of evaluation technologies
in three exploration wells drilled by Statoil in 2013. The Litho Scanner*
high-definition spectroscopy tool was run for the first time for Statoil and
used to determine mineralogy and Total Organic Carbon. The MDT modular
formation dynamics tester configured with Quicksilver Probe* technology, and
the InSitu Fluid Analyzer and dual packer systems enabled interval pressure
transient testing and fluid sampling to be conducted in the same run. These
techniques were used to determine reservoir properties and the pressure
profile within the reservoir. In addition, walkaway seismic profiling using
VSI* versatile seismic imager technology was used to better calibrate the
wells to seismic. The Wireline technology combination gave Statoil the
necessary information to evaluate their Harpoon and Bay du Nord discoveries.

Offshore Tanzania, BG Group used a combination of Rt Scanner* and MR Scanner*
technologies with the aim of helping lower the risk of bypassed pay in
deepwater East Africa. The approach was corroborated by high-quality PVT
samples using Quicksilver Probe low contamination sampling and resulted in
further evaluation of the structure. The zones identified were tested at 60
MMscfd.

In Venezuela, Wireline PowerJet Nova* extradeep penetrating shaped charge
technology was used for PDVSA to improve production from wells in the Monagas
region. The re-perforating campaign was conducted successfully and led to an
increase in oil production of more than 350%, or 17,500 bbl/d of incremental
production, which exceeded expectations.

In the Bakken shale play in North Dakota, a combination of Schlumberger
technologies was specifically designed for use by Continental Resources to
execute the largest ever downhole microseismic monitoring operation in the
history of the industry. The hydraulic fracture growth and optimum well
spacing were tested in the Bakken and Three Forks formations using three
Wireline VSI* versatile seismic imager receiver arrays simultaneously conveyed
in three wells using TuffTRAC* cased hole services technology. The VSI
technology acquired high quality data over 3,000 ft from the location of the
microseismic events. The operation was successfully completed in 63 days and
included 293 fracturing stages with the Wireline monitoring services
efficiently conveyed in excess of 300,000 lateral ft.

In Germany, the WesternGeco Amazon Warrior was launched at the Flensburg
shipyard, with the project on time and on budget. Amazon-class vessels feature
the world’s first custom-built hull and propulsion system, developed
exclusively for seismic operations using a WesternGeco proprietary design. The
vessel is expected to be completed in Q1 2014 and begin operations in Q2.

In Russia, IG Seismic Services Ltd (IGSS) has purchased its third WesternGeco
UniQ* integrated point-receiver land seismic system, and will be deploying
over 70,000 UniQ broadband point-receiver recording channels on projects for
their customers in Russia this winter season.

ConocoPhillips has awarded Schlumberger a global licensing agreement to
implement the Techlog* wellbore software platform in all of its operating
units worldwide. The Techlog platform will enable standardization of
petrophysical and geological well data analysis across the customer’s business
units. The agreement also includes a comprehensive training and deployment
program designed to effectively support global implementation.

In the UAE, Schlumberger technologies and petrotechnical expertise assisted
Dragon Oil in a challenging reservoir study in the Lam Main asset in the
Cheleken Block in Turkmenistan. SIS MEPO* multiple realization optimizer
software with the help of experimental designs and workflow optimization
techniques enabled the customer to evaluate the full range of options for
asset development and production challenges, and to mitigate risk and improve
reservoir management decisions. MEPO technology and associated workflows
enabled Dragon Oil to generate history-matched models in two months, compared
to the six to eight months using conventional methods and provided the
customer with a higher level of confidence in its development plan.

Drilling Group

Fourth-quarter revenue of $4.50 billion was up 2% sequentially and grew 9%
year-on-year. Pretax operating income of $880 million was 2% lower
sequentially, but increased 28% year-on-year.

Sequentially, revenue increased on international demand for Drilling &
Measurements and M-I SWACO technologies in Mexico and Russia & Central Asia as
well as in the Middle East & Asia Area. Stronger IPM project activity in
Mexico, Saudi Arabia and Iraq also contributed to the increase.

Sequentially, pretax operating margin declined 69 bps to 19.6% but increased
288 bps year-on-year. The sequential decline was due to operational start-up
delays and the geographical mix of activity.

A number of Drilling Group technologies contributed to the fourth-quarter
results.

In China, Schlumberger Drilling Group technologies were deployed for CNOOC
(Tianjin Branch) to drill three infill wells in the offshore SZ36-1 field,
known for its complex geology and challenging unconsolidated formations. The
combination of Drilling & Measurements PowerDrive Archer* high build rate
rotary steerable and EcoScope*^† multifunction logging-while-drilling
technologies, with a customized Smith polycrystalline diamond compact (PDC)
bit and i-DRILL* engineered drilling system design, enabled the wells to be
placed accurately in the pay zone. This technology combination delivered a
130% average rate of penetration (ROP) improvement over conventional drilling
systems.

Also in China, Drilling & Measurements deployed StethoScope* formation
pressure-while-drilling technology for Energy Development Corporation (China),
Inc. (EDC), a joint venture between Sinopec and Noble Energy, on an offshore
well in the Shengli oilfield. A total of 61 pressure tests identified 12 fluid
gradients. The pressure gradient information from this job helped EDC identify
up to 55 m of new potential low-resistivity pay zones, which have been ignored
in the past when evaluated using only petrophysical log data.

In Malaysia, Drilling & Measurements technologies were deployed for Petronas
Carigali Sdn. Bhd. to drill a horizontal injector well in a formation with
thin, depleted sands. Combination of PowerDrive* rotary steerable, PeriScope*
bed boundary mapping, EcoScope multifunction logging-while-drilling, and
StethoScope formation pressure-while-drilling technologies enabled Petronas
Carigali to accurately place the well within the thin target zone, while
securing valuable real-time formation pressure measurements in the highly
depleted sands. Periscope technology mapped the top and bottom boundaries
continuously, successfully guiding the steering of the well within the 1-m
target zone and resulting in 100% sand exposure.

Offshore Gabon, Schlumberger Drilling Group technologies were deployed for
Total to drill an ultra-deepwater exploration well in a pre-salt play.
Drilling & Measurements PowerV* vertical drilling rotary steerable technology
was used to maintain verticality of the well. In the reservoir section, the
combination of PowerDrive vorteX* powered rotary steerable technology and
customized Smith bits drilled the well section efficiently, 30% ahead of the
planned time. Overall, the combination of these technologies, together with
flawless execution, led to zero non-productive time under challenging pre-salt
conditions.

In Namibia, Drilling & Measurements seismicVISION* seismic-while-drilling
technology was deployed for HRT Africa Petroleo S.A. (HRT) on three deepwater
exploration wells in the Orange and Walvis basins. The seismicVISION
technology provided real-time data for the PetroTechnical Services InterACT*
global connectivity service, which was used to provide continuous updates of
the drill bit position on the seismic section to the Petrel* E&P software
platform. The real-time, look-ahead vertical seismic profile image enabled HRT
to visualize key formation tops ahead of the bit, which helped make confident
drilling decisions by eliminating depth uncertainty, which in some cases,
exceeded 100 m.

In the UK sector of the North Sea, Schlumberger Drilling Group Technologies
and Petrotechnical Engineering Center expertise helped EnQuest drill an 8
1/2-in well section with a reduced four-man offshore crew, supported by two
engineers in the Schlumberger Operations Support Center in Aberdeen. Drilling
& Measurements PowerDrive Xceed* rotary steerable, EcoScope multifunction
logging-while-drilling, StethoScope formation pressure-while-drilling, and
sonicVISION* sonic-while-drilling technologies provided the drilling
efficiency to enable the successful remote operations which led to a reduction
of two people on board the space-limited offshore platform.

In Russia, Schlumberger Drilling Group Technologies established a new field
record for Eriell while drilling an 8 5/8-in well section in the Samburgskoe
field in the Novy Urengoy region. Drilling & Measurements PowerDrive vorteX*
powered rotary steerable technology with a customized Smith PDC bit achieved a
rate of penetration of 41.4 m/h and meterage of 1,968 m, which represent the
best results in the field.

In Kazakhstan, Schlumberger Drilling Group Technologies established a new
record for Zhaikmunai LLP while drilling the 11 5/8-in section of a well in
the Chinarevskoe field. A combination of Drilling & Measurements PowerDrive
X6* rotary steerable technology and a customized Smith PDC bit with ONYX*
cutter technology enabled the entire section to be drilled in a single run at
an average rate of penetration of 21.9 m/h, representing the best field result
to date.

In Russia, Schlumberger deployed Stinger* conical diamond element technology
on a Smith customized drill bit for VCNG, a Rosneft company, to drill a 12
1/4-in well section in the East Siberia Verchnechonskoe field. The drill bit
increased the drilling ROP by over 63% compared to the best offset well in the
same field, and showed minimum wear. In addition, the entire 12 1/4-in section
was drilled in a single run at an average ROP 140% higher compared to
conventional PDC bits.

In the Caspian Sea, Drilling Group Technologies performed a successful
underreaming-while-drilling operation for BP Azerbaijan in a complex,
extended-reach well offshore Baku. The combination of Drilling Tools &
Remedial Rhino XC* on-demand hydraulically actuated reamer and customized
Smith PDC bit with ONYX II* cutter technology enabled rapid reamer activation
and deactivation from surface—helping overcome various technical challenges
including equivalent circulating density control. A post-run analysis
indicated that the Rhino XC and ONYX cutter technologies met all operational
objectives and, upon inspection, showed minimum wear. This job was the first
non-ball, multiactivation/deactivation underreamer run in the Caspian Sea
basin.

Production Group

Fourth-quarter revenue of $4.22 billion increased 5% sequentially, and grew 8%
year-on-year. Pretax operating income of $730 million was 3% higher
sequentially, and increased 26% year-on-year.

The increase in revenue resulted primarily from stronger Completions and
Artificial Lift product year-end sales coupled with new technology uptake and
business expansion. Well Intervention Services declined mainly in North
America land, while Well Services revenue grew primarily from higher activity
in international markets. Well Services stage count in North America land also
increased, but revenue declined from the persistent pricing weakness resulting
from the continued hydraulic horsepower oversupply.

Sequentially, pretax operating margin of 17.3% was essentially flat but
increased 244 bps year-on-year. The sequential result was attributable to the
favorable impact of year-end Completions and Artificial Lift product sales and
improved SPM profitability being fully offset by continued Well Services
pricing weakness and decline in Well Intervention Services activity.

Highlights during the fourth quarter included successes for a number of
Production Group technologies.

In Russia, PetroStim, a Schlumberger joint venture, conducted the first
multistage stimulation treatment for Gazpromneft Orenburg in the eastern part
of the Orenburg oil and gas condensate field. The five-stage stimulation
treatment was executed along a 600-m horizontal section of a well drilled in a
very tight carbonate formation. As a result, the well’s average initial
production was approximately 500 bbl/d, twice that expected.

In Kuwait, after Schlumberger jointly evaluated several candidate wells with
Kuwait Oil Company (KOC), the upper Burgan reservoir in the Sabriyah field was
stimulated using Well Services HiWAY* flow-channel fracturing technology.
Following the analysis of the DataFRAC* fracture data determination service,
the pump schedule was finalized and the treatment successfully executed as per
the design. Post-job, the well flow-tested at approximately 1,000 bfpd with
20% water cut, delivering about 400 bopd of additional incremental oil above
initial expectations. This was the first application of the HiWAY technique in
Kuwait and, based on these results, a second job is being scheduled in the
nearby Raudhatain field.

In Kuwait, Well Intervention Blaster* services were used for Kuwait Oil
Company in the stimulation treatment of a newly drilled well in the tight
Ratawi limestone formation. The Blaster services provided an efficient means
of removal for the filter cake, which together with a coiled-tubing-deployed
stimulation treatment, enabled the operator to more than double the well's
production.

In Russia, Well Intervention performed a complex water shutoff intervention
for Lukoil in a horizontal well in West Siberia, which was planned for
abandonment as it produced only water. The Vantage* modular coiled tubing
logging head system was used for the initial and post-treatment production
logging measurements to identify the water breakthrough zones and evaluate the
efficiency of the water shutoff operation. Once the water producing zones were
identified, the water shutoff treatment was performed using a cement slurry
solution, accurately placed using two CoilFLATE* coiled tubing inflatable
packers. After intervention, the water cut decreased by 30%, which allowed the
customer to put the well back in production.

Offshore Nigeria, Well Services deployed OneSTEP* simplified sandstone
stimulation system for Star Deep Water Petroleum Limited to overcome
increasing skin and declining production on two wells in the 17D formation of
the deepwater Agbami field. Prior to the matrix stimulation treatment,
formation core samples were taken and analyzed, and the damage mechanism
identified as fines migration. The OneSTEP stimulation was then pumped
efficiently, as a single-stage fluid, compared to conventional matrix
stimulation systems that require several stages. The OneSTEP stimulation
treatment effectively remediated the impairment and led to a production
improvement in both wells of 90% and 150% respectively, compared to
pre-stimulation production rates. The operation was executed safely and
exceeded the customer’s expectations.

In French Guiana, Well Services successfully placed 11 extended-length cement
plugs of over 350 m each for Shell in exploratory wells in the ultra-deep
Zaedyus and Priondontes field. The job execution was flawless, and the results
saved Shell over 24 hours of operating time, representing approximately $1.2
million in drillship day rate savings.

In Arkansas, Schlumberger Completions next-generation multistage stimulation
technologies were used for BHP Billiton to reduce completion times in the
Fayetteville shale play. The combination of KickStart* rupture disc valve and
degradable materials technologies eliminated the need for mechanical
intervention during the first hydraulic fracturing stage of each well, along
with time-consuming plug milling operations.

In Colombia, Schlumberger executed the first multizone, single-selective
horizontal openhole gravel pack for Hocol, a subsidiary of Ecopetrol, in order
to control sand production and high water cut in a well in the Los Llanos
foreland basin. The completion design was based on Sand Management Solutions
OptiPAC* Alternate Path^‡ systems with oil swell packers and a hybrid
inner-selective production string. Wireline Flow Scanner* horizontal well
production logging technology enabled a better understanding of reservoir
behavior, and provided the production data for each sand to validate
successful zonal isolation. The combination of Schlumberger technologies used
in this challenging horizontal well helped provide the customer’s asset team
with a more robust reservoir characterization leading to improved reservoir
management and the addition of new reserves.

Murphy Sabah Oil Co. Ltd. has awarded Schlumberger a four-year contract for
the supply of the products and services associated with gravel pack activities
offshore Sabah, Malaysia. The contract includes Sand Management Solutions
OptiPac Alternate Path systems, Well Services ClearPAC* fluid system for
gravel packing, and deployment using the fit-for-purpose DeepSTIM* II
stimulation vessel.

CNR International (Côte d'Ivoire) SARL (CNRI) has awarded Schlumberger the
completions work on wells planned to be drilled as part of the Baobab Phase 3
project in waters offshore the Ivory Coast. The development includes the
installation of completions in six subsea wells. The award covers upper and
lower completions including sand screens and gravel packing. In addition, the
OptiPAC Alternate Path gravel pack system will be used to ensure complete
packing of the long horizontal intervals in a challenging environment.

Offshore Qatar, Schlumberger Completions was awarded a three-year contract by
Maersk Oil Qatar AS to provide products and services in the Block-5 field. The
award covers permanent downhole gauges, single and multiline flatpacks,
control line clamps, and surface hydraulically controllable sliding sleeves
and services. The first Schlumberger permanent downhole gauges for Maersk Oil
Qatar AS were installed in 1995, and the gauges continue to provide reliable,
real-time pressure and temperature data. In total, 188 Schlumberger permanent
downhole gauges and sensors with surface data communication systems have been
installed in this customer’s offshore field, enabling the real-time remote
monitoring of wells for improved reservoir management.

In India, Schlumberger has been awarded a multiple services contract by Oil
India Ltd. for the engineering design, drilling and completion of six
horizontal wells in the Makum, Deohal and North Hapjan onshore fields.
Traditionally, the horizontal wells in these fields have been completed with
conventional slotted liners. A key contributing factor for this contract award
was the introduction of Schlumberger Completions FluxRITE* inflow control
device systems for the reliable control of produced water and improved sand
management, allowing the customer to maximize oil recovery. The 18-month
contract includes services from Drilling & Measurements, M-I SWACO, Drilling
Tools & Remedial, Completions, Artificial Lift and Well Services.

                             Financial Statements

Condensed Consolidated Statement of Income
                                                                     
                             (Stated in millions, except per share amounts)
                                                                       
                             Fourth Quarter            Twelve Months
Periods Ended December       2013         2012         2013           2012
31,
                                                                       
Revenue                      $ 11,906     $ 11,083     $ 45,266       $ 41,731
Interest and other             59           35           165            172
income, net ^(1)
Gain on formation of           -            -            1,028          -
OneSubsea^(2)
Expenses
    Cost of revenue^(2)        9,283        8,762        35,331         32,885
    Research &                 304          304          1,174          1,153
    engineering
    General &                  111          111          416            405
    administrative
    Merger &                   -            60           -              128
    integration^(2)
    Impairment &               -            33           456            33
    other^(2)
    Interest                   97           93           391            340
Income before taxes            2,170        1,755        8,691          6,959
Taxes on income^(2)            487          432          1,848          1,700
Income from continuing         1,683        1,323        6,843          5,259
operations
Income (loss) from             -            48           (69    )       260
discontinued operations
Net income                     1,683        1,371        6,774          5,519
Net income attributable
to noncontrolling              19           9            42             29
interests
Net income attributable      $ 1,664      $ 1,362      $ 6,732        $ 5,490
to Schlumberger
                                                                       
Schlumberger amounts
attributable to:
    Income from
    continuing               $ 1,664      $ 1,314      $ 6,801        $ 5,230
    operations^(2)
    Income (loss) from
    discontinued               -            48           (69    )       260
    operations
    Net income               $ 1,664      $ 1,362      $ 6,732        $ 5,490
                                                                       
Diluted earnings per
share of Schlumberger
    Income from
    continuing               $ 1.26       $ 0.98       $ 5.10         $ 3.91
    operations^(2)
    Income (loss) from
    discontinued               -            0.04         (0.05  )       0.19
    operations
    Net income               $ 1.26       $ 1.02       $ 5.05         $ 4.10
                                                                       
Average shares                 1,312        1,328        1,323          1,330
outstanding
Average shares
outstanding assuming           1,326        1,336        1,333          1,339
dilution
                                                                       
Depreciation &
amortization included in     $ 930        $ 930        $ 3,666        $ 3,500
expenses^(3)
                                                                         
1) Includes interest income of:
Fourth quarter 2013 - $11 million (2012 - $6 million)
Twelve months 2013 - $31 million (2012 - $29 million)
2) See page 14 for details of charges and credits.
3) Including multiclient seismic data cost.
                                                                         

 
Condensed Consolidated Balance Sheet
                                                                     
                                                         (Stated in millions)
                                                                       
                                                         Dec. 31,     Dec. 31,
Assets                                                   2013         2012
Current Assets
   Cash and short-term investments                       $ 8,370      $ 6,274
   Receivables                                             11,497       11,351
   Other current assets                                    6,358        6,531
                                                           26,225       24,156
Fixed income investments, held to maturity                 363          245
Fixed assets                                               15,096       14,780
Multiclient seismic data                                   667          518
Goodwill                                                   14,706       14,585
Other intangible assets                                    4,709        4,802
Other assets                                               5,334        2,461
                                                         $ 67,100     $ 61,547
                                                                       
Liabilities and Equity                                                 
Current Liabilities
   Accounts payable and accrued liabilities              $ 8,837      $ 8,453
   Estimated liability for taxes on income                 1,490        1,426
   Short-term borrowings and current portion of            2,783        2,121
   long-term debt
   Dividend payable                                        415          368
                                                           13,525       12,368
Long-term debt                                             10,393       9,509
Postretirement benefits                                    670          2,169
Deferred taxes                                             1,708        1,493
Other liabilities                                          1,169        1,150
                                                           27,465       26,689
Equity                                                     39,635       34,858
                                                         $ 67,100     $ 61,547
                                                                         
                                                                         

                                   Net Debt

“Net Debt”, a non-GAAP measure, represents gross debt less cash, short-term
investments and fixed income investments, held to maturity. Management
believes that Net Debt provides useful information regarding the level of
Schlumberger’s indebtedness by reflecting cash and investments that could be
used to repay debt. Details of changes in Net Debt for the full year follow:

                                               
                                                (Stated in millions)
                                                                   
Twelve Months                                   2013
Net Debt, January 1, 2013                       $ (5,111  )
   Income from continuing operations              6,801
   Depreciation and amortization                  3,666
   Gain on formation of OneSubsea                 (1,028  )
   Charges                                        608
   Pension and other postretirement               518
   benefits expense
   Stock-based compensation expense               344
   Pension and other postretirement               (527    )
   benefits funding
   Increase in working capital                    (27     )
   Capital expenditures                           (3,943  )
   Multiclient seismic data capitalized           (394    )
   Dividends paid                                 (1,608  )
   Proceeds from employee stock plans             537
   Stock repurchase program                       (2,596  )
   Payment for OneSubsea transaction              (600    )
   Other business acquisitions, net of            (610    )
   cash and debt acquired
   Other                                          (358    )
   Currency effect on net debt                    (115    )
Net Debt, December 31, 2013                     $ (4,443  )
                                                                     
Components of Net Debt                          Dec. 31,            Dec. 31,
                                                2013                2012
Cash and short-term investments                 $ 8,370             $ 6,274
Fixed income investments, held to                 363                 245
maturity
Short-term borrowings and current portion         (2,783  )           (2,121 )
of long-term debt
Long-term debt                                    (10,393 )           (9,509 )
                                                $ (4,443  )         $ (5,111 )
                                                                              
                                                                              

                              Charges & Credits

In addition to financial results determined in accordance with US generally
accepted accounting principles (GAAP), this Fourth-Quarter Press Release also
includes non-GAAP financial measures (as defined under the SEC’s Regulation
G). The following is a reconciliation of non-GAAP measures to the comparable
GAAP measures:

                                                                           
                                                                            (Stated in millions, except
                                                                            per share amounts)
                                                                                         
                     Fourth Quarter 2013
                                                Noncont.                    Diluted       Income
                     Pretax         Tax         Interest     Net            EPS           Statement
                                                                                          Classification
Schlumberger
income from
continuing           $ 2,170        $ 487       $   19       $ 1,664        $ 1.26
operations, as
reported
  Provision for                                                                           Cost of
  accounts             152            30            -          122            0.09        revenue
  receivable^(1)
Schlumberger
income from
continuing
operations,          $ 2,322        $ 517       $   19       $ 1,786        $ 1.35   
excluding
charges &
credits
                                                                                           
                     Fourth Quarter 2012
                                                Noncont.                    Diluted       Income
                     Pretax         Tax         Interest     Net            EPS           Statement
                                                                                          Classification
Schlumberger
income from
continuing           $ 1,755        $ 432       $   9        $ 1,314        $ 0.98
operations, as
reported
  Merger and                                                                              Merger &
  integration          60             10            -          50             0.04        integration
  costs
  Workforce            33             6             -          27             0.02        Cost of
  reduction                                                                               revenue
Schlumberger
income from
continuing
operations,          $ 1,848        $ 448       $   9        $ 1,391        $ 1.04   
excluding
charges &
credits
                                                                                           
                     Twelve Months 2013
                                                Noncont.                    Diluted       Income
                     Pretax         Tax         Interest     Net            EPS           Statement
                                                                                          Classification
Schlumberger
income from
continuing           $ 8,691        $ 1,848     $   42       $ 6,801        $ 5.10
operations, as
reported
  Gain on                                                                                 Gain on
  formation of         (1,028 )       -             -          (1,028 )       (0.77 )     formation of
  OneSubsea                                                                               OneSubsea
  joint venture
  Impairment of                                                                           Impairment &
  equity method        364            19            -          345            0.26        other
  investments
  Provision for                                                                           Cost of
  accounts             152            30            -          122            0.09        revenue
  receivable^(1)
  Currency
  devaluation          92             -             -          92             0.07        Impairment &
  loss in                                                                                 other
  Venezuela
Schlumberger
income from
continuing
operations,          $ 8,271        $ 1,897     $   42       $ 6,332        $ 4.75   
excluding
charges &
credits
                                                                                           
                     Twelve Months 2012
                                                Noncont.                    Diluted       Income
                     Pretax         Tax         Interest     Net            EPS           Statement
                                                                                          Classification
Schlumberger
income from
continuing           $ 6,959        $ 1,700     $   29       $ 5,230        $ 3.91
operations, as
reported
  Merger and                                                                              Merger &
  integration          128            16            -          112            0.08        integration
  costs
  Workforce            33             6             -          27             0.02        Cost of
  reduction                                                                               revenue
Schlumberger
income from
continuing
operations,          $ 7,120        $ 1,722     $   29       $ 5,369        $ 4.01   
excluding
charges &
credits
                                                                                           
                                                                                           
There were no charges or credits in the third quarter of 2013.
                                                                                           
^(1) Relates to a client in Brazil that filed for bankruptcy.

 
 
Product Groups
(Stated in millions)
                      Three Months Ended
                      Dec. 31, 2013                Sept. 30, 2013               Dec. 31, 2012
                                     Income                       Income                       Income
                      Revenue        Before        Revenue        Before        Revenue        Before
                                     Taxes                        Taxes                        Taxes
Oilfield Services
Reservoir             $ 3,249        $ 1,031       $ 3,232        $ 983         $ 3,093        $ 886
Characterization
Drilling                4,497          880           4,415          894           4,120          688
Production              4,219          730           4,024          707           3,906          581
Eliminations &          (59    )       (37   )       (63    )       (88   )       (36    )       (43   )
other
                        11,906         2,604         11,608         2,496         11,083         2,112
Corporate & other       -              (197  )       -              (179  )       -              (180  )
Interest                -              7             -              6             -              6
income^(1)
Interest                -              (92   )       -              (92   )       -              (90   )
expense^(1)
Charges & credits       -              (152  )       -              -             -              (93   )
                      $ 11,906       $ 2,170       $ 11,608       $ 2,231       $ 11,083       $ 1,755  
                                                                                                
Geographic Areas
(Stated in millions)
                      Three Months Ended
                      Dec. 31, 2013                Sept. 30, 2013               Dec. 31, 2012
                                     Income                       Income                       Income
                      Revenue        Before        Revenue        Before        Revenue        Before
                                     Taxes                        Taxes                        Taxes
Oilfield Services
North America         $ 3,649        $ 716         $ 3,602        $ 730         $ 3,422        $ 656
Latin America           2,000          425           1,934          399           2,071          377
Europe/CIS/Africa       3,211          725           3,178          714           2,958          579
Middle East &           2,936          767           2,801          730           2,485          549
Asia
Eliminations &          110            (29   )       93             (77   )       147            (49   )
other
                        11,906         2,604         11,608         2,496         11,083         2,112
Corporate & other       -              (197  )       -              (179  )       -              (180  )
Interest                -              7             -              6             -              6
income^(1)
Interest                -              (92   )       -              (92   )       -              (90   )
expense^(1)
Charges & credits       -              (152  )       -              -             -              (93   )
                      $ 11,906       $ 2,170       $ 11,608       $ 2,231       $ 11,083       $ 1,755  
                                                                                                        
^(1) Excludes interest included in the Product Groups and Geographic Areas Results.

 
Product Groups
(Stated in millions)
                         Twelve Months Ended
                         Dec. 31, 2013                Dec. 31, 2012
                                        Income                       Income
                         Revenue        Before        Revenue        Before
                                        Taxes                        Taxes
Oilfield Services
Reservoir                $ 12,246       $ 3,647       $ 11,159       $ 3,069
Characterization
Drilling                   17,317         3,309         15,892         2,789
Production                 15,927         2,619         14,802         2,327
Eliminations & other       (224   )       (231  )       (122   )       (68   )
                           45,266         9,344         41,731         8,117
Corporate & other          -              (726  )       -              (696  )
Interest income^(1)        -              22            -              30
Interest expense^(1)       -              (369  )       -              (331  )
Charges & credits          -              420           -              (161  )
                         $ 45,266       $ 8,691       $ 41,731       $ 6,959  
                                                                      
Geographic Areas
(Stated in millions)
                         Twelve Months Ended
                         Dec. 31, 2013                Dec. 31, 2012
                                        Income                       Income
                         Revenue        Before        Revenue        Before
                                        Taxes                        Taxes
Oilfield Services
North America            $ 13,897       $ 2,735       $ 13,535       $ 2,737
Latin America              7,751          1,589         7,554          1,387
Europe/CIS/Africa          12,366         2,589         11,444         2,245
Middle East & Asia         10,810         2,700         8,775          1,921
Eliminations & other       442            (269  )       423            (173  )
                           45,266         9,344         41,731         8,117
Corporate & other          -              (726  )       -              (696  )
Interest income^(1)        -              22            -              30
Interest expense^(1)       -              (369  )       -              (331  )
Charges & credits          -              420           -              (161  )
                         $ 45,266       $ 8,691       $ 41,731       $ 6,959  
                                                                              
^(1) Excludes interest included in the Product Groups and Geographic Areas
Results.
                                                                              

About Schlumberger

Schlumberger is the world’s leading supplier of technology, integrated project
management and information solutions to customers working in the oil and gas
industry worldwide. Employing 123,000 people representing over 140
nationalities and working in more than 85 countries, Schlumberger provides the
industry’s widest range of products and services from exploration through
production.

Schlumberger Limited has principal offices in Paris, Houston and The Hague,
and reported revenues from continuing operations of $45.27 billion in 2013.
For more information, visit www.slb.com.

*Mark of Schlumberger or of Schlumberger Companies.

^†Japan Oil, Gas and Metals National Corporation (JOGMEC), formerly Japan
National Oil Corporation (JNOC), and Schlumberger collaborated on a research
project to develop LWD technology. The EcoScope and NeoScope services use
technology that resulted from this collaboration.

^‡Alternate Path is a Mark of ExxonMobil Corp and the technology is licensed
exclusively to Schlumberger.

Notes

Schlumberger will hold a conference call to discuss the above announcement and
business outlook on Friday, January 17, 2014. The call is scheduled to begin
at 8:00 a.m. US Central Time (CT), 9:00 a.m. Eastern Time (ET). To access the
call, which is open to the public, please contact the conference call operator
at +1-800-230-1766 within North America, or +1-612-288-0340 outside of North
America, approximately 10 minutes prior to the call’s scheduled start time.
Ask for the “Schlumberger Earnings Conference Call.” At the conclusion of the
conference call, an audio replay will be available until February 17, 2014 by
dialing +1-800-475-6701 within North America, or +1-320-365-3844 outside of
North America, and providing the access code 306544.

The conference call will be webcast simultaneously at www.slb.com/irwebcast on
a listen-only basis. Please log in 15 minutes ahead of time to test your
browser and register for the call. A replay of the webcast will also be
available at the same web site.

Supplemental information in the form of a question and answer document on this
press release and financial information is available at www.slb.com/ir.

Schlumberger Limited
Malcolm Theobald – Schlumberger Limited, Vice President of Investor Relations
Joy V. Domingo – Schlumberger Limited, Manager of Investor Relations
Office +1 (713) 375-3535
investor-relations@slb.com

Contact:

Schlumberger Limited
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