Schlumberger announces 1996 second quarter earnings.

NEW YORK--(BUSINESS WIRE)--July 18, 1996-- Schlumberger Limited reported today that net income was $197 million and earnings per share were $0.80, gains of 18% and 16%, respectively, compared to second quarter 1995.

For the quarter, operating revenue was $2.15 billion, 15% above the prior

Chairman and Chief Executive Officer Euan Baird stated: "The continued strong growth of all our Oilfield Services product lines reflects the increasing confidence of our clients in their upstream operations and the commitments we have made to a broad range of technologies focused on improving productivity. The Measurement & Systems business had a poor quarter, mainly due to market pressures arising from significant technology changes and the confusion caused by deregulation in the electricity and gas utility businesses in Europe."

Oilfield Services revenue rose 22%, while the rig count worldwide increased 7%. All product lines contributed significantly to this quarter's results, including a profitable contribution from Geco-Prakla.

Measurement & Systems revenue increased 2% compared to the same period last year, with strong growth from Electronic Transactions largely being offset by lower metering revenue. -0-

Consolidated Statement of Income (Unaudited)

                            (Stated in thousands except per share amounts)
                                  Second Quarter            Six Months
For Periods Ended June 30         1996       1995        1996        1995
Revenue
 Operating                  $2,150,790 $1,877,081  $4,178,618  $3,639,378
 Interest and other income      16,067     22,181      33,437      46,059
                             2,166,857  1,899,262   4,212,055   3,685,437
Expenses
 Cost of goods
   sold and services         1,631,997  1,417,745   3,181,600   2,754,207
 Research & engineering        114,740    104,947     225,539     208,232
 Marketing                      75,334     69,428     148,524     135,351
 General                        88,683     88,487     173,942     174,089
 Interest                       18,120     21,472      35,463      41,998
 Taxes on income                41,265     30,329      79,402      57,897
                             1,970,139  1,732,408   3,844,470   3,371,774
Net Income                  $  196,718 $  166,854  $  367,585  $  313,663

Net Income Per Share        $     0.80 $     0.69  $     1.50  $     1.30
Average shares outstanding     244,670    241,887     244,014     241,970
Depreciation and amortization
 included in expenses       $  219,669 $  203,713  $  436,682  $  402,643

Condensed Balance Sheet (Unaudited)
                                                     (Stated in thousands)
Assets                                      June 30, 1996   Dec. 31, 1995
Current Assets
     Cash and short-term investments          $ 1,157,535     $ 1,120,533
     Other current assets                       3,221,925       2,903,170
                                                4,379,460       4,023,703
Long-term investments, held to maturity           207,885         279,950
Fixed assets                                    3,158,286       3,118,458
Excess of investment over net
   assets of companies purchased                1,294,555       1,330,490
Other assets                                      166,950         157,499
                                              $ 9,207,136     $ 8,910,100

Liabilities and Stockholders' Equity
Current Liabilities
     Accounts payable and accrued liabilities $ 1,790,105     $ 1,773,605
     Estimated liability for taxes on income      273,384         299,841
     Bank loans and current
        portion of long-term debt                 683,872         599,120
     Dividend payable                              92,238          91,706
                                                2,839,599       2,764,272
Long-term debt                                    577,051         613,404
Postretirement benefits                           370,740         354,830
Other liabilities                                 187,822         213,577
                                                3,975,212       3,946,083
Stockholders' Equity                            5,231,924       4,964,017
                                              $ 9,207,136     $ 8,910,100

Business Review
                                                     (Stated in millions)
                        Oilfield Services         Measurement & Systems
Second Quarter        1996    1995   % change    1996      1995   % change
Operating Revenue  $ 1,444 $ 1,183     22%    $   708   $   697      2%
Operating Income(1)$   215 $   164     31%    $    32   $    40   (21)%
Six Months
Operating Revenue  $ 2,797 $ 2,301     22%    $ 1,383   $ 1,343      3%
Operating Income(1)$   392 $   301     30%    $    64   $    72   (12)%

    (1)  Operating income represents income before income taxes,
excluding interest expense and interest and other income.

OILFIELD SERVICES
    Operating revenue for Oilfield Services was 22% above last year.
North America and outside North America revenues were up 21% and 23%,
respectively, and represented 18% and 50% of consolidated revenue,
respectively.
    In North America, the most notable revenue increases were from
Dowell, Wireline & Testing and Geco-Prakla, which were 16%, 14% and
41%, respectively.
    Outside North America, revenue grew 15% at Wireline & Testing and
18% at Dowell.  Also significant, revenue at Geco-Prakla and Sedco
Forex rose 34% and 28%, respectively.
    Operating income increased $13 million in North America and $43
million outside North America.  The quarter included a profitable
contribution from Geco-Prakla.

North America
    Rig count increased 9% for the quarter.  Activity increased
significantly in the Gulf of Mexico, positively impacting all product
lines.
    The new DeepSEA EXPRES(a) cementing technology was successfully
introduced.  This unique system improves the cementing of casing
strings for subsea completions.  The resulting reduction of downtime
on floating drilling structures yields substantial savings for the
client.  The Laffit Pincay, a semisubmersible rig, completed its
first full quarter of activity under Sedco Forex management following
the completion of drilling-make-ready modifications.  Information
Technology and Data Management Services grew 39% compared to last
year.  In the latter, a significant three-year service contract with
a major US oil company was secured, to provide integrated information
technology and data management for their exploration and production
activities.

Outside North America
    Key contributions to growth came from West Africa, the North Sea
and Latin America.  Rig count for the quarter rose 4%.
    The successful deployment of PLATFORM EXPRESS(a) technology
continued.  Also being aggressively introduced is the Modular
Configuration MAXIS(a) surface acquisition system.  By combining this
surface system with downhole wireline logging suites, including
PLATFORM EXPRESS technology, we offer a complete and customized
wireline logging system, setting a new standard for wellsite
efficiency, reliability and data quality.  During the quarter, a
significant contract was secured in Norway, which includes
measurements-while-drilling (MWD), logging while drilling (LWD),
directional drilling, cementing, drilling and completion fluids
services, coiled tubing and wireline logging services.  In our
seismic activities, we launched the new Quantified Quality Assurance
(QQA) system, the first system to provide seismic quality control
based on geophysical criteria.  Additionally, major Land seismic
contracts were successfully completed in Kazakhstan, France and
Kuwait, and backlog in crew months increased 40%.
    Compared to the second quarter of 1995, our average offshore rig
utilization rate increased from 88% to 94%, driven by a 100%
utilization of jack-up rigs.  The improvement in results was due to
the increase in rig utilization, continued strengthening of offshore
dayrates and fleet expansion.  At June 30, 1996, our fleet consisted
of 79 rigs: 33 land and 46 offshore, including three chartered
semisubmersibles and two lake barges under management contract.
    RAPID(a) Reentry and Production Improvement Drilling services
were formally introduced during the quarter.  These services range
from economic analysis for identifying wells that are suitable
candidates for production improvement to providing the people,
technology, tools and systems needed for well preparation,
sidetracking, short- and medium-radius drilling, coiled tubing
drilling and completion.  During the quarter, a significant five-year
agreement was signed for a customer's operations in London, Aberdeen
and Copenhagen, for software and services, including installation of
the Finder(a) data management system and the GeoFrame(a) integrated
reservoir characterization system.

MEASUREMENT & SYSTEMS
    Revenue increased 2% from last year as continued strong growth at
Electronic Transactions, particularly reflecting high demand for
smart cards, was largely offset by a decline in the metering
business.  Orders were down 1% due to lower orders at Automatic Test
Equipment and the weakening of most European currencies against the
US dollar.
    Measurement & Systems operating income declined from last year
principally due to changing market conditions which have severely
impacted margins in the metering business, higher research and
engineering expenses at ATE and costs associated with expansion into
new areas.
    Electronic Transactions revenue was up 18% from the same period
last year, reflecting 54% growth in smart cards, including shipments
of electronic payment systems to the Atlanta Olympics.  In addition,
strong demand for subscriber identity module (SIM) cards in China
continued.  Orders increased 19%, reflecting large requests for
payphone equipment in Europe and South America along with expanded
card demand.  ATE revenue increased 4%, driven by stronger sales at
Diagnostic Systems, particularly of the IDS 5000HX(a), and at
Automated Systems.
    Orders deteriorated 35% from the same period last year on a
slowdown in semiconductor capital equipment spending.  Revenue in the
Electricity Management, Water Management and Gas Management business
decreased 2%.  The decline was due to softening of market conditions
in Germany, lower demand in the UK for prepayment meters and strong
pricing pressures.  Orders were flat.  The deregulation of
electricity and gas utilities in Europe has greatly affected the
metering business.  Changes in metering technology, uncertainty in
the market place and pricing pressures have significantly offset the
growth experienced by Electronic Transactions.

Change in Liquidity
    Liquidity represents cash plus short-term and long-term
investments less debt.  A summary of the major components of the
change in liquidity follows:

                                         (Stated in millions)
Six Months                                      1996    1995
Funds provided by:
        Net income                          $   368  $   314
        Depreciation and amortization           437      403
        Employee stock option plan               92       10
        Employee stock purchase plan             25       24
Funds used for:
        Fixed asset additions                  (499)    (447)
        Businesses acquired                      (6)     (59)
        Purchase of shares for Treasury           -      (37)
        Dividends paid                         (183)    (145)
        Working capital and other              (318)    (149)
Change in liquidity                             (84)     (86)
Liquidity, beginning of period                  188      404
Liquidity, end of period                    $   104  $   318

The full text of this press release is available on the Schlumberger World Wide Web site at: http://www.slb.com/

(a) Mark of Schlumberger

CONTACT: Schlumberger Limited, New York

Simone Crook, 212/350-9432