Schlumberger
to sell SchlumbergerSema
Posted: 23 September 2003
Strengthens focus on oilfield services and exploration & production
process and information solutions
Schlumberger Limited has signed a binding agreement with Atos Origin
for the sale of the majority of SchlumbergerSema businesses.
The transaction proceeds would amount to approximately $1.5 billion
consisting of €400 million in cash and a fixed number of 19.3
million of Atos Origin common shares that represent approximately
29% of the common shares outstanding of Atos Origin.
Subsequent to closing, Schlumberger expects to reduce its ownership
in Atos Origin to 19% following which Schlumberger intends to account
for this investment under the cost method.
The closing, which is expected in January 2004, is subject to Atos
Origin shareholder approval, customary regulatory approvals, the
employee information and consultation process, and other conditions.
Using the Atos Origin stock price and US dollar Euro exchange rate
as of Friday, September 19th, Schlumberger expects no impairment
charge to earnings for the third quarter as a result of this transaction,
though facts and market conditions could alter this conclusion for
this quarter and future reporting periods.
Commenting on this transaction, Andrew Gould, Chairman and Chief
Executive Officer, said:
"The future for Schlumberger services to the upstream oil
and gas industry is exceptionally bright as the world adds new supply
capacity to meet demand and replace production from aging hydrocarbon
reservoirs. Key amongst the techniques required to enhance hydrocarbon
recovery will be the information technologies that enable real-time
reservoir description, monitoring and management.
Schlumberger has the fundamental IT knowledge needed and will address
these opportunities through the expanded Schlumberger Information
Solutions operating unit that is part of Schlumberger Oilfield Services.
The activities of this unit include technical consulting, information
management and Exploration & Production (E&P) software augmented
by E&P business process optimization together with secure worldwide
network connectivity from sub-surface to desktop."
Gould further stated:
"The global IT services industry is going through an important
phase of consolidation and the combination of the SchlumbergerSema
IT businesses with Atos Origin will create a leading European IT
Services company with broad presence and competence across the world."
Schlumberger will retain a number of specific SchlumbergerSema
businesses that include Business Continuity, Infodata — a
Swedish database company — and all software products related
to the SchlumbergerSema telecommunications activity.
These, together with smart cards, point-of-sale terminals, payment
systems, eCity terminals and payphones are being considered for
divestiture or IPO.
Schlumberger Limited also announced charges to be taken in the
third quarter.
As previously announced, the company will record the second and
final after-tax charge of $86 million, which includes premium, issuing
and tender costs related to extinguishment of European debt.
In the light of current and expected future business conditions
in the seismic sector, the company has undertaken and completed
an impairment review of the WesternGeco multiclient library.
As a result, WesternGeco will record a pre-tax charge of $398 million.
Schlumberger will recognize an after-tax and minority interest charge
of $205 million in the third quarter. Approximately 70 per cent
of the charge relates to North American surveys.
About Schlumberger
Schlumberger is a global oilfield and information services company
with major activity in the energy industry.
The company employs 78,000 people of more than 140 nationalities
working in 100 countries and comprises three primary business segments.
Schlumberger Oilfield Services is the world's premier oilfield services
company supplying a wide range of technology services and solutions
to the international oil and gas industry.
WesternGeco, jointly owned with Baker Hughes, is the world's largest
and most advanced surface seismic company.
SchlumbergerSema is a leading supplier of IT consulting, systems
integration, and network and infrastructure services. In 2002, Schlumberger
operating revenue was $13.2 billion.
For more information see www.slb.com.
About Atos Origin
Atos Origin is an international information technology services
provider. Its business is turning client vision into results through
the application of consulting, systems integration and managed operations,
including outsourcing and on-line services.
In August 2002, Atos Origin acquired KPMG Consulting in the UK
and The Netherlands, trading as Atos KPMG Consulting. The company
generates annual revenues of EUR 3 billion and employs 28,000 staff
in 30 countries.
The Group's client list includes major companies such as ABN AMRO,
Akzo-Nobel, Alstom, BNP Paribas, BP, Euronext, Fiat, ICI, ING, KPN,
Lucent, Philips, Renault, Royal Bank of Scotland, Saudi Aramco,
Shell, UBS Warburg, Unilever, Vivendi Universal, Vodafone and Wolters
Kluwer.
For more information see www.atosorigin.com.
Posted by Richard Price,
Editor Pipeline Magazine
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