BW20021210002604  20021210T233333Z UTC


( BW)(SCHLUMBERGER-LD.)(SCL) Schlumberger Updates Strategy for 
SchlumbergerSema Business Segment and Announces Charges
 
    Business Editors
    UK REGULATORY NEWS

    NEW YORK--(BUSINESS WIRE)--Dec. 10, 2002--

    Strong Emphasis on the Global Energy Industry with Regional
    Focus on Local Growth Opportunities

Schlumberger Limited (NYSE:SLB) today announced that the Board of
Directors has approved an updated strategy for its SchlumbergerSema
business segment. SchlumbergerSema will focus on IT consulting,
systems integration together with network and infrastructure
solutions, primarily in global energy while continuing to develop
specific regional market sectors in areas where it enjoys a successful
competitive position based on scale and domain knowledge. This
strategy is designed to create industry leadership in the huge energy
market by combining the systems integration skills of Sema with the
global reach and energy sector knowledge of Schlumberger.

The volume products activities, which include smart cards, point
of sales terminals, payphones, eCity terminals, electricity meters,
payment systems and telecom software products will be managed
separately.

The costs of this business realignment within SchlumbergerSema,
amounting to approximately $77 million after tax ($0.13 per share),
are mainly related to facility closures and workforce reductions in
Continental Europe and the United States of 1600 people.

As a result of an impairment review based on the strategic plan
outlook, realignment and current business values, SchlumbergerSema
will recognize charges of $2,885 million after-tax in its fiscal
fourth quarter 2002 corresponding to $4.96 per share. These charges
include $2,618 million related to impairment of goodwill and a further
$267 million impairment associated with intangibles and other costs,
including a provision against a deferred tax asset in Europe.

The impairment of goodwill mainly reflects the current
difficulties of the telecommunications industry and the severely
depressed market values of the IT companies serving the sector.

At the same time, Schlumberger reiterated its view, expressed in
the report for the third quarter that demand for oilfield services in
the US would remain lackluster in the fourth quarter, while activity
in the UK North Sea and Nigeria would soften. Further, current work
stoppages have increased uncertainty in relation to the level of
oilfield activity in Venezuela. In contrast, the activity at
SchlumbergerSema continues to improve.

In addition, the operating losses experienced by WesternGeco in
the third quarter 2002 are expected to be repeated in the fourth
quarter due to the seasonal slowdown in Europe marine activity and the
reduction of land activity in the US. Schlumberger will record an
after-tax charge of $77 million related to reducing the WesternGeco
workforce by 1700 people, closing the land-based seismic operations in
the US lower 48 states and Canada and reducing the marine seismic
fleet. Schlumberger will also record after-tax charges of $129 million
related to a partial impairment of the WesternGeco multiclient
library. This represents 15% of the total library. These figures
reflect the Schlumberger share of the seismic joint venture and
correspond to $0.35 per share.

The total of all fourth quarter charges is $3.17 billion
corresponding to $5.44 per share. The cash impact of the charges is
less than $160 million while the restructuring of SchlumbergerSema and
WesternGeco is expected to generate a total of $250 million in
annualized pre-tax costs savings. Further, management expects to
achieve its goal of reducing the company's net debt to under $4
billion by year-end 2003.

Schlumberger Limited (NYSE:SLB) is a global technology services
company consisting of two business segments. Schlumberger Oilfield
Services is the leading provider of technology services and solutions
to the international petroleum industry. SchlumbergerSema is an IT
services company providing consulting and systems integration
services, and network and infrastructure solutions, to the energy, oil
and gas, telecommunications, finance and public sector markets. In
2001, Schlumberger revenue was $14.3 billion. For more information
visit http://www.slb.com. WesternGeco is owned 70% by Schlumberger and
30% by Baker Hughes.
                                                    
Note:

Supplemental information in the form of a question and answer
document on this press release is available at 
http://www.slb.com/dec10pr

   Short Name: Schlumberger Ld.
   Category Code: MSC
   Sequence Number: 00001403
   Time of Receipt (offset from UTC): 20021210T210940+0000

    --30--EB/ny 

    CONTACT: Schlumberger Ld.
             Investor Relations:
             Christian Lange
             212/350-9432
                   or
             Stephen Whittaker
             Director of Communications
             212/350-9492

    KEYWORD: NEW YORK UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: ENERGY OIL/GAS
    SOURCE: Schlumberger Ld.

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