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31
Industrial Services
Industrial Services revenue increased 7% and profit before tax decreased 12% in 2014 compared to 2013. The
increase in revenue was primarily driven by the acquisition of a complementary pipeline services business in the
third quarter of 2014. Profitability in the segment decreased as a result of integration expenses related to this
acquisition, along with an increase in environmental costs compared to the prior year.
2013 Compared to 2012
Year Ended December 31,
2013 2012 $ Change % Change
Revenue:
North America $ 10,878 $ 10,836 $ 42 — %
Latin America 2,307 2,399 (92) (4)%
Europe/Africa/Russia Caspian 4,041 3,810 231 6 %
Middle East/Asia Pacific 3,859 3,099 760 25 %
Industrial Services 1,279 1,217 62 5 %
Total Revenue $ 22,364 $ 21,361 $ 1,003 5 %
Year Ended December 31,
2013 2012 $ Change % Change
Profit Before Tax:
North America $ 968 $ 1,268 $ (300) (24)%
Latin America 66 197 (131) (66)%
Europe/Africa/Russia Caspian 591 605 (14) (2)%
Middle East/Asia Pacific 457 294 163 55 %
Industrial Services 135 131 4 3 %
Total Operations 2,217 2,495 (278) (11)%
Corporate and other (502) (513) 11 (2)%
Total Profit Before Tax $ 1,715 $ 1,982 $ (267) (13)%
Revenue for 2013 increased $1 billion or 5% compared to 2012, with the increase coming predominantly from
the Eastern Hemisphere as we continue to grow our operations in the Middle East, Asia Pacific, Africa and Russia
Caspian. In North America, revenue growth in the Gulf of Mexico was essentially offset by lower revenue in
Canada.
Profit before tax from operations for 2013 decreased $278 million or 11% compared to 2012. Despite the
increase in revenue, our profit before tax was significantly impacted by low equipment utilization resulting from over
capacity in the pressure pumping business in North America, a decline in activity and lower prices for drilling
services in Brazil, and reduced pricing and increased start-up costs associated with the new drilling contract in
Norway. Additionally, during the fourth quarter of 2013, we incurred costs of $79 million in Iraq related to a
significant disruption to operations, increased personnel and security costs, and other non-recurring items. These
reductions to profit before tax were partially offset by Asia Pacific, which experienced a significant improvement in
profitability throughout the region driven by increased activity and improved mix of product sales.
In 2012, profit before tax included charges of $63 million, of which $43 million related to the impairment of
certain information technology assets primarily associated with internally developed software and other assets, and
$20 million related to the closure of a chemical manufacturing facility in the U.K. As our information technology and
supply chain organizations support our global operations, these charges were allocated to all segments. The
amount of the impairment charges recorded by segment in 2012 was as follows: North America - $33 million; Latin
America - $7 million; Europe/Africa/Russia Caspian - $11 million; Middle East/Asia Pacific - $10 million; and
Industrial Services - $2 million.