Schlumberger Limited (NYSE:SLB) Q4 2014 Earnings Conference Call - Final Transcript
Jan 16, 2015 • 08:00 am ET
Ladies and gentlemen, thank you for standing by. Welcome to the Schlumberger Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Instructions will be given at that time. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Vice President Investor Relations, Mr. Simon Farrant. Please go ahead.
Thank you, Greg. Good morning and welcome to the Schlumberger Limited fourth quarter and full quarter 2014 results conference call. Today's call is being hosted from Houston where the Schlumberger Limited Board meeting took place yesterday. Joining us on the call are Paal Kibsgaard, Chief Executive Officer; and Simon Ayat, Chief Financial Officer. Our prepared comments will be provided by Simon and Paal. Simon will first review the financial results and then Paal will discuss the operational and technical highlights.
However, before we begin with the opening remarks, I would like to remind the participants that some of the information in today's call may include forward-looking statements as well as non-GAAP financial measures. A detailed disclaimer and other important information is included in the earnings press release on our website. We welcome your comments after the prepared segments.
I will now turn the call over to Simon.
Thank you, Simon. Ladies and gentlemen, thank you for participating in this conference call. Fourth quarter earnings per share from continuing operations excluding charges and credits was $1.50. This represents an increase of $0.01 sequentially and is $0.15 higher when compared to the same quarter last year. During the quarter we recorded $1.8 billion of pretax charges. These charges are primarily related to actions we have taken to meet the challenges of the current market conditions.
The $806 million of charges relating to the restructuring of the WesternGeco seismic fleet are as we announced last month. We recorded $296 million of severance cost associated with the headcount reduction of approximately 9,000. This reduction which will largely be completed by the end of the first quarter will bring our headcount more in line with the currently anticipated activity levels.
In Venezuela effective December 31, 2014, we changed the exchange rate we applied to our bolivar denominated transactions from 6.3 to 50 bolivar per dollar, which is in line with the SICAD II exchange rate resulting in a $472 million charge.
believe that this rate now best represents the economics of our business activity in Venezuela. Going forward, this charge will reduce the US dollar amount of local currency denominated revenues and expenses. Had we applied this exchange rate throughout all of 2014, it would have reduced our full year EPS by approximately $0.08.
The last item relates to $199 million write-down of unconventional integrated project in the Eagle Ford as the result of the decline in oil prices.
Fourth quarter revenue of $12.6 billion was flat sequentially. This reflected approximately $260 million of yearend software product and multi-client sales which were weaker than