Q3 service sector results—revenues boom

Service companies see record revenues. Some even report bottom line growth.

Halliburton’s Energy Services Group (ESG) announced quarterly revenues of $2.1 billion, a 17% increase over the same period last year. Chairman Dave Lesar said, ‘ESG had record quarterly revenue, operating income, and margins. We continue to see revenue growth and profit improvement in ESG. The rig count continues to increase, while our uplift in pricing, coupled with our focus on cost control are providing stronger margins.‘


Production Optimization was particularly buoyant with operating income for the quarter at $222 million, 88% up. Landmark Graphics achieved a modest 3% revenue growth due primarily to increased software sales in Mexico.


Schlumberger’s third-quarter 2004 operating revenue was $2.93 billion ($2.54 billion in Q3 2003). Oilfield Services revenue of $2.61 billion increased 16% compared to the same quarter of last year. Even WesternGeco’s revenue was up 14% year-on-year.


Chairman and CEO Andrew Gould said, ‘Pricing in North America showed good improvement, and overall activity trends remained very positive particularly in the Eastern Hemisphere. New technology revenue from Wireline was particularly impressive in the quarter. WesternGeco had an excellent quarter with pretax operating income approaching the levels we set as an objective 18 months ago.’

Core Laboratories

CoreLab’s third quarter revenues were $109 million, an all-time quarterly high, up 11% over Q3 2003. The record results were due to ongoing reservoir description projects, increased demand for new technology, services and products and the success of several new studies.


CoreLab president and CEO, David Demshur commented, ‘Our commitment to new technologies and services for reservoir performance has resulted in all-time record quarterly and nine-month financial results. Incremental production from existing fields is generating much interest as spare capacity drops to historical lows.’

Baker Hughes

Chad Deaton, Baker Hughes’ CEO reported, ‘Solid third quarter with a 16% hike in revenue compared to the same quarter a year ago. Oilfield revenue from outside the United States was at record levels and exceeded $1 billion in a quarter for the first time ever.’


TGS-NOPEC net revenues, at $43.5 million, were 36% up on Q3 2003 with A2D contributing some 11% and TGS Imaging (NuTec) another 2%. A2D has completed cataloging the Riley and Divestco logs into its LogLine+ database. The North American library now holds over 4 million logs from approximately 1.8 million wells. Of these, 3 million logs have already been digitized.


I/O revenues were up substantially, from $30.3 million in Q3 2003 to $80.9. I/O president Bob Peebler said, ‘VectorSeis sales are expected to grow in both the land and marine environments as acceptance of this new technology continues. The additions of GX Technology and Concept Systems have added the necessary key pieces we needed to build a seismic solutions company.’


Veritas had to restate its fourth quarter and fiscal 2004 results to ‘properly reflect’ a $3.7 million adjustments. Veritas chairman and CEO Thierry Pilenko said, ‘We will complete the restatement process as quickly as possible and will resume our regular soon.’ Veritas does not expect these adjustments or the restatement to have a significant effect on its operations or future results.


Weatherford International revenues for the third quarter were $794.3 million, up 23 percent from the same quarter last year. Corporate expenses increased mostly due to Weatherford’s Sarbanes-Oxley 404 compliance project.

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