Exhibit 99.1

Electricity Products Business

of Schlumberger Limited

Combined Financial Statements

December 31, 2003 and 2002 and for the

three years ended December 31, 2003

Report of Independent Registered Public Accounting Firm

To the Management of Schlumberger Limited

In our opinion, the accompanying combined balance sheets and the related combined statements of income, of changes in owner’s net investment and accumulated other comprehensive income and of cash flows present fairly, in all material respects, the financial position of the Electricity Products Business of Schlumberger Limited (the “Electricity Products Business” or the “Company”) at December 31, 2003 and 2002, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2003, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of Electricity Products Business; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

The Company is a fully integrated business of Schlumberger Limited. Consequently, as indicated in Note 1, these combined financial statements have been derived from the consolidated financial statements and accounting records of Schlumberger Limited and reflect significant assumptions and allocations. Moreover, as indicated in Note 1, the Company relies on Schlumberger Limited and its other businesses for certain administrative, management and other services. Accordingly, these combined financial statements do not necessarily reflect the combined financial position, results of operations, changes in owner’s net investment and cash flows of the Company had it been a separate, stand-alone entity during the periods presented.

1

COMBINED BALANCE SHEETS

(Electricity Products Business of Schlumberger Limited)

The accompanying notes are an integral part of these combined financial statements.

2

COMBINED STATEMENTS OF INCOME

(Electricity Products Business of Schlumberger Limited)

The accompanying notes are an integral part of these combined financial statements.

3

COMBINED STATEMENTS OF CHANGES IN OWNER’S NET INVESTMENT AND ACCUMULATED OTHER

COMPREHENSIVE INCOME (LOSS)

(Electricity Products Business of Schlumberger Limited)

The accompanying notes are an integral part of these combined financial statements.

4

COMBINED STATEMENTS OF CASH FLOWS

(Electricity Products Business of Schlumberger Limited)

The accompanying notes are an integral part of these combined financial statements.

5

NOTES TO COMBINED FINANCIAL STATEMENTS

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

Note 1: Basis of Presentation

Electricity Products, headquartered in South Carolina, is a leading manufacturer of electric meters and a wholly-owned subsidiary of Schlumberger Limited. Electricity Products has manufacturing facilities in South Carolina and in Quebec, Canada, and has a sales and distribution center in Mexico. Sales in Taiwan are made through a combined partially-owned subsidiary.

Sangamo Electric Company, its predecessor, was founded in 1899 and was acquired by Schlumberger Limited (Schlumberger) in 1975.

The accompanying Combined Financial Statements present, in conformity with accounting principles generally accepted in the United States of America, the combined assets, liabilities, revenues and expenses related to the historical operations of the Electricity Products Business of Schlumberger (the “Electricity Products Business” or the “Company”).

The accompanying Combined Financial Statements are presented on a “carve-out basis” and include the historical operations of the defined Electricity Products Business. Accordingly, Schlumberger’s net investment in the Electricity Products Business (Owner’s net investment) is shown in lieu of stockholder’s equity in the Combined Financial Statements. The Combined Financial Statements included herein have been prepared from the Electricity Products Business’ historical accounting records.

The Combined Statements of Income include all revenues and costs attributable to the Electricity Products Business including costs for certain functions and services performed by centralized Schlumberger organizations and directly charged or allocated to the Electricity Products Business based on usage or other systematic methods.

All of the allocations and estimates in the Combined Financial Statements are based on assumptions that management believes are reasonable under the circumstances. However, these allocations and estimates are not necessarily indicative of the costs and expenses that would have resulted if the Electricity Products Business had been operated as a separate stand-alone entity.

Note 2: Accounting Policies

Principles of Combination

The accompanying Combined Financial Statements include the accounts of the Electric Meters Businesses in the U.S., Canada and Mexico, and the accounts of a majority-owned subsidiary in Taiwan, over which the Company exercises control. All significant intercompany accounts and transactions have been eliminated.

Revenue Recognition

The Electricity Products Business derives its revenue from the sale of electric meters to customers through their direct sales force, independent sales representatives and from sales to distributors. Revenue from the sale of electric meters is recognized upon shipment to customers or distributors under arrangement where title passes to the customer FOB Shipping Point or upon receipt by the customer when the arrangement is FOB destination, when there is persuasive evidence of an arrangement, the sales price is fixed or determinable and collection is reasonably assured. Distributors of the Company do not have the right of return.

The Company gives rebates to certain customers as incentive to replace old meters with newly purchased meters. The Company records the rebate upon the shipment of new meters to the customer as a reduction to revenue.

Concentrations of Credit Risk

Financial instruments that potentially expose the Electricity Products Business to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. To minimize risk, cash and cash equivalents are held with highly rated financial institutions. In addition, risk related to accounts receivable is minimized through ongoing credit evaluations of customers’ financial condition and in certain instances customers are required to pay deposits for a portion of the sales price. For sales to third parities for the years ended December 31, 2003 and 2001, one customer represented 14% and 13% of total revenue, respectively. There were no customers to which the Company made a significant amount of sales (in excess of 10%) for the year ended December 31, 2002. Customer deposits are considered liabilities until the Company satisfies revenue recognition criteria.

6

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

Cash and Cash Equivalents

All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Cash represents deposits of the Company’s majority owned foreign subsidiary and amounts to be transferred to Schlumberger. Cash in the U.S. and Canada is managed centrally by Schlumberger. All cash receipts from customers are generally transferred to Schlumberger. In addition, as the Company requires funds for payments, amounts are generally transferred from Schlumberger. These net transfers are presented as a contribution/distribution in Owner’s net investment. Book overdrafts represent outstanding checks that will be credited to Owner’s net investment when funded from Schlumberger.

Inventories

Inventories are principally valued at the lower of cost or market and cost is determined using the last-in, first-out (LIFO) dollar value method. Inventories consist of components, sub-assemblies and finished goods held for sale.

Technological change and new product introductions and enhancements could result in excess or obsolete inventory. To minimize this risk, the Company evaluates inventory levels and expected usage on a periodic basis and records a charge as required.

Property and Equipment

Property and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives as follows:

Major improvements that extend the useful life of an asset are capitalized. Maintenance and repair costs are expensed as incurred. When properties and equipment are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are eliminated and the resulting gain or loss is recognized in the income statement.

Long-Lived Assets

Management reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. If an impairment loss exists, the resulting write-down would be the difference between fair market value of the long-lived asset and the related net book value. There were no impairments recorded for the years ended December 31, 2003, 2002 or 2001.

Product Warranty

Warranty provisions related to sales of meters are determined based upon an estimate of costs that are expected to be incurred under the Company’s warranty program. Activity related to warranty provisions was as follows:

7

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

Income Taxes

The Company’s operating results historically have been included in Schlumberger’s consolidated U.S. and state income tax returns and in tax returns of Schlumberger’s foreign subsidiaries. The provision for income taxes reflected in the Combined Financial Statements has been determined on a separate return basis.

Taxes on income are computed in accordance with the tax rules and regulations of the taxing authorities where the income is earned. The income tax rates imposed by these taxing authorities vary substantially. Taxable income may differ from pre-tax income for financial accounting purposes. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized.

Stock-Based Compensation

Schlumberger and the Company account for stock-based awards to employees using the intrinsic value method in accordance with Accounting Principles Board Opinion (“APB”) No. 25, “Accounting for Stock Issued to Employees” and have adopted the disclosure only provisions of SFAS 123, “Accounting for Stock-Based Compensation.” Stock-based awards issued to non-employee are accounted for under SFAS 123.

Had compensation cost for the stock-based Schlumberger plans been determined based on the fair value at the grant dates for awards to Electricity Product’s employees under those plans, consistent with the method of SFAS 123, the Electricity Products Business’s net income would have been adjusted as follows:

As required by SFAS 123, the fair value of each grant is estimated for proforma disclosure purposes on the date of grant using the multiple option Black-Scholes option-pricing model with the following weighted-average assumptions used for 2002 and 2001: dividend of $0.75 for 2002 and 2001; expected volatility of 35—36% for 2002 grants and 32%—33% for 2001 grants; weighted risk-free interest rate of 4.73% for the 2002 grants; and weighted risk-free interest rates of 5.69% for the 2001 grants; and expected option lives of 5.07 years for 2002 grants and 5.02 years for 2001 grants.

Foreign Currency

The financial statements of the subsidiaries in Canada, Mexico and Taiwan are measured using their local currencies as the functional currency. Assets and liabilities of these subsidiaries are translated at the rates of exchange at the balance sheet date. Income and expense items are translated at average monthly rates of exchange. The resulting gains and losses from the translation of accounts are included in accumulated other comprehensive income. All transaction gains and losses are included in income in the period in which they occur.

Comprehensive Income (Loss)

Components of comprehensive income (loss) are net income and all changes in equity during a period except those resulting from transactions with owners. Accumulated other comprehensive income (loss), consists of foreign currency translation adjustments. The Company has made no provision for income taxes on comprehensive income because there is no intention to remit the undistributed income/(losses) in foreign subsidiaries.

8

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

Fair Value of Financial Instruments

Financial instruments consist of cash and cash equivalents, accounts receivable and accounts payable. The carrying amounts of these items approximate fair value because of their short-term maturities.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of certain assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the related reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the allowance for doubtful accounts, LIFO, environmental reserves, and inventory obsolescence reserves. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

In July 2002, the Financial Accounting Standards Board issued SFAS 146 (Accounting for Costs Associated with Exit or Disposal Activities). The standard required companies to recognize costs associated with exit or disposal activities when they are incurred rather than at the date of a commitment to an exit or disposal plan. Examples of costs covered by the standard include lease termination costs and certain employee severance costs that are associated with a restructuring, discontinued operation, plant closing, or other exit or disposal activity. Previous accounting guidance was provided by EITF Issue No. 94-3, (Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity [including Certain Costs Incurred in a Restructuring]). SFAS 146 replaced Issue 94-3. The Company adopted SFAS 146 prospectively to exit or disposal activities initiated after December 31, 2002.

In November 2002, FASB Interpretation No. 45 (Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others) was issued. It requires certain accounting and disclosures of guarantees to third parties including indebtedness. The interpretation is effective on a prospective basis for guarantees issued or modified after December 31, 2002. The implementation of this interpretation did not have a material effect on the Company’s financial position or results of operations.

In January 2003, the Emerging Issues Task Force (EITF) issued No. 00-21 (Accounting for Revenue Arrangements with Multiple Deliverables). This EITF establishes the criteria for recognizing revenue in arrangements when several items are bundled into one agreement. EITF 00-21 does not allow revenue recognition unless the fair value of the undelivered element(s) is available and the element has stand-alone value to the customer. EITF 00-21 also provides guidance on allocating the total contract revenue to the individual elements based upon the available fair value of each deliverable. The implementation of this pronouncement did not have a material impact on the Company’s financial position or results of operations.

In January 2003, the Financial Accounting Standards Board issued FASB Interpretation No. 46, (Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51). The primary objective of the interpretation is to provide guidance on the identification of, and financial reporting for entities over which control is achieved through means other than voting rights; such entities are known as variable-interest entities (VIE’s). FIN 46 provides guidance that determines (1) whether consolidation is required under the “controlling financial interest” model of Accounting Research Bulletin No. 51 (ARB 51), Consolidated Financial Statements, or other existing authoritative guidance, or, alternative, (2) whether the variable-interest model under FIN 46 should be used to account for existing and new entities. The Company does not believe that the adoption of this statement will have a material effect on the financial position or results of operations.

In April 2003, the Financial Accounting Standards Board issued SFAS No. 149 (Amendment of Statement 133 on Derivative Instruments and Hedging Activities) which amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities under SFAS No. 133 (Accounting for Derivative Instruments and Hedging Activities). SFAS 149, which is to be applied prospectively, is effective for contracts entered into or modified after June 30, 2003, and for hedging relationships designated after June 30, 2003. The adoption of this new standard did not have a material impact on the Company’s results of operations or financial position.

In May 2003, the Financial Accounting Standards Board, issued SFAS No. 150, (Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity). The Standard specifies that instruments within its scope embody obligations of the issuer and therefore, the issuer must classify them as liabilities. The Standard was effective July 1, 2003, and had no material effect on the Company’s financial position.

9

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

In January 2004, the Financial Accounting Standards Board issued FSP No. FAS 106-1 (Accounting and Disclosure Requirements Related to the Medicare Prescription Drug Improvement and Modernization Act of 2003). The statement permits the deferral of accounting related to the effects of the legislation until the earlier of issuance of final accounting guidance by the FASB or a significant plan amendment/curtailment event requiring remeasurement, occurring after January 31, 2004. The Company expects the new legislation will significantly reduce future postretirement medical costs.

Note 3: Valuation and Qualifying Accounts

Valuation and qualifying accounts are as follows for the years ended December 31, 2003 and 2002:

During the year ended December 31, 2003, the Company reserved $3,337 related to one customer, whose outstanding balance was deemed uncollectible.

Note 4: Inventories

Inventories at December 31, 2003 and 2002 consist of the following:

10

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

Note 5: Property and Equipment

Property and equipment at and December 31, 2003 and 2002 consist of the following:

Note 6: Accrued Liabilities

Accrued liabilities at December 31, 2003 and 2002 consist of the following:

Note 7: Income Taxes

The components of income before income taxes for the years ended December 31, 2003, 2002 and 2001 were as follows:

11

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

The provision for income taxes for the years ended December 31, 2003, 2002 and 2001 consisted of the following:

The income tax expense (benefit) for the twelve months ended December 31, 2003, 2002 and 2001 resulted in effective tax rates of 41.5%, 43.6% and 41.8%, respectively. The reasons for the differences between these effective tax rates and the U.S. statutory rate of 35% for the twelve months ended December 31, 2003 and 2002 are as follows:

Deferred tax assets and liabilities at December 31, 2003 and 2002 are comprised of the following:

The Electricity Products Business has not recorded a valuation allowance against deferred tax assets as they are expected to be fully realizable. The Electricity Products Business has not recorded a deferred income tax liability for additional income taxes that would result from the distribution of earnings of its foreign subsidiaries if they were actually repatriated. The Electricity Products Business intends to indefinitely reinvest the undistributed earnings of its foreign subsidiaries.

12

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

Payments to Schlumberger for income taxes totaled $17,022, $3,040 and $4,116 for the years ended December 31, 2003, 2002 and 2001, respectively.

Note 8: Pension and Other Benefit Plans

Schlumberger and its subsidiaries sponsor several defined benefit and defined contribution pension plans that cover substantially all of the employees of the Electricity Products Business. The benefits are based on years of service and compensation on a career-average pay basis. These plans are funded with a trustee in respect to past and current service. Charges to expense are based upon costs computed by independent actuaries. The funding policy is to annually contribute amounts that are allowable for federal income tax purposes. These contributions are intended to provide for benefits earned to date and those expected to be earned in the future.

The pension and other post retirement benefit information contained in these Combined Financial Statements are based on allocations of the plan performance, plan assets and benefit obligations of the parent company plan. These pro-rata allocations were determined based on current participation of employees of the Electricity Products Business, which Electricity Products management believes is a reasonable method.

U.S. Pension Plans

The assumptions used in determining the net pension cost for the years ended December 31, 2003, 2002 and 2001 were as follows:

Net pension cost in the U.S. for 2003, 2002 and 2001 included the following components:

13

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

The changes in the projected benefit obligation, plan assets and funded status of the plans on December 31, 2003 and 2002, were as follows:

Postretirement Benefits other than Pension

Schlumberger provides certain health care benefits to former employees who have retired under the U.S. pension plans. The plan is not funded.

The principle actuarial assumptions used to measure costs were a discount rate of 6.75% in 2003, 7.25% in 2002 and 7.50% in 2001. The health care trend rate for the 2002 valuation decreased gradually from 9.5% for 2002 to 5.0% by the year 2007.

Net periodic post-retirement benefit cost allocated to the Electricity Products Business in the U.S. for 2003, 2002 and 2001, included the following components:

14

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

The change in accumulated postretirement benefit obligation, plan assets and funded status for the years ended December 31, 2003 and 2002 was as follows:

If the assumed medical cost trend rate was increased by one percentage point, service cost in 2003 would have been $1,508, interest cost in 2003 would have been $6,055 and the accumulated postretirement benefit obligation would have been $102,954 on December 31, 2003.

If the assumed medical cost trend rate was decreased by one percentage point, service cost in 2003 would have been $876, interest cost in 2003 would have been $4,639 and the accumulated postretirement benefit obligation would have been $77,272 on December 31, 2002.

Note 9: Stock Compensation Plans

As of December 31, 2003, Schlumberger had two types of stock-based compensation plans, which are described below. Employees of the Electricity Products Business participated in both types of plans. The Company applies APB Opinion 25 and related Interpretations in accounting for its plans. Accordingly, no compensation cost is recognized in the accompanying statement of income for awards granted to employees under its stock option plans and its stock purchase plan with exercise prices at least equal to the fair market value of the Company’s common stock on the date of grant.

Stock Option Plans

During 2003, 2002 and 2001 and in prior years, officers and key employees of the Electricity Products Business were granted stock options under Schlumberger stock option plans. For all of the stock options granted, the exercise price of each option equals the market price of Schlumberger stock on the date of grant; an option’s maximum term is ten years, and options generally vest in 20% increments over five years.

15

NOTES TO COMBINED FINANCIAL STATEMENTS – (Continued)

(Electricity Products Business of Schlumberger Limited)

(in thousands of dollars)

A summary of the status of the Schlumberger stock option plans as they relate to options granted to employees of the Electricity Products Business for the years ended December 31, 2003, 2002 and 2001 is presented below (actual amounts):