Meager third quarter results for service cos.

Core bucks the trend with ‘all-time’ record quarterly revenues. Elsewhere financial gloom abounds.


Baker Hughes Inc. reported a $59.5 million loss for the third quarter of 2003 including after tax charges of $151.2 million relating to its 30% interest in WesternGeco. BHI chairman Mike Wiley said, “Our oilfield divisions continued their strong performance in the third quarter with a consolidated operating profit margin in excess of 15% despite disappointing customer spending in the Gulf of Mexico. For the current quarter we expect continued modest improvements in the international markets and flat US activity.”


CGG reported a net loss of €25.5 million including a €19.0 million provision for restructuring land acquisition. Further to the approval by a US Court on October 21st 2003 of the PGS financial restructuring program, CGG will own 868 000 shares, i.e. 4.35 % of PGS capital. At today’s share price this represents about $33 million—a tidy return on CGG’s investment of approximately $19.0 million.


Core Laboratories reports ‘all-time record’ quarterly revenue of $105 million for the third quarter of 2003. The company reports that international oil companies are investing capex dollars to increase production from existing fields. Core has repurchased some 5 million of its own shares and has approval for an extra 2.9 million shares over the next 18 months.


Input/Output has announced a third quarter 2003 net loss of $4.8 million on revenues of $30.3 million. I/O president Bob Peebler said, “Despite lower than expected revenues, we are pleased with our continued improvement in year-over-year sales and gross margin and are beginning to see positive signs of increasing capital outlays by some of the E&P and seismic contracting companies.”


Schlumberger has reported third quarter 2003 operating revenue of $3.51 billion. The company has posted a net loss of $55 million after charges of $298 million, including a $205 million impairment charge on the WesternGeco multiclient library. Chairman Andrew Gould noted, “continued strength in the Americas, Russia and the Middle East. The write-down of the WesternGeco data library reflects the distressed conditions of the multiclient business, particularly in the Gulf of Mexico. The SchlumbergerSema sale is a major step in our strategy of refocusing Schlumberger on our core business of technical services and reservoir solutions to the upstream oil and gas industry.”


TGS-Nopec’s consolidated net revenues were $32,0 million up 50% on Q3 2002 with operating profit of $9,2 million. The A2D unit added 77,000 logs from 41,000 wells to its digital well log library, bringing the total inventory to 1,65 million digital well log images from approximately 790,000 wells.


Veritas’ fiscal 2003 fourth quarter showed charges of $59.9 million including a $7.6 million loss on the sale of the (RC)2 unit to Seismic Micro Technology (SMT). SMT paid $2.0 million cash for the unit which was acquired in 2001 for $33 million of Veritas paper.


See the article in this issue for reporting from Halliburton’s Landmark Graphics unit.

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