Schlumberger Announces First-Quarter 2018 Results
- Revenue of
$7.8 billion decreased 4% sequentially - Pretax operating income of
$974 million decreased 16% sequentially - EPS was
$0.38 - Cash flow from operations was
$568 million
|
(Stated in millions, except per share amounts) |
|||||||||||||||||
Three Months Ended | Change | |||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sequential | Year-on-year | ||||||||||||||
Revenue | $7,829 | $8,179 | $6,894 | -4% | 14% | |||||||||||||
Pretax operating income | $974 | $1,155 | $757 | -16% | 29% | |||||||||||||
Pretax operating margin | 12.4% | 14.1% | 11.0% | -169 bps | 145 bps | |||||||||||||
Net income (loss) - GAAP basis | $525 | $(2,255) | $279 | n/m | 88% | |||||||||||||
Net income, excluding charges & credits* | $525 | $668 | $347 | -21% | 51% | |||||||||||||
Diluted EPS (loss per share) - GAAP basis | $0.38 | $(1.63) | $0.20 | n/m | 90% | |||||||||||||
Diluted EPS, excluding charges & credits* | $0.38 | $0.48 | $0.25 | -21% | 52% | |||||||||||||
*These are non-GAAP financial measures. See section below entitled "Charges & Credits" for details. | ||||||||||||||||||
n/m = not meaningful | ||||||||||||||||||
Schlumberger Chairman and CEO
"The underlying international businesses started the year well, as business units in the
"On land in
"Overall, the first-quarter sequential revenue decline was led by the
"Looking at the global oil market, the absence of global stock builds in the first quarter, supported by the
"We remain optimistic about the outlook for sustainable activity growth in our global business over the course of 2018 and into 2019. This is driven by higher customer activity and our ability to capture a major share of the emerging opportunities as performance-based contracts and integrated projects continue to gain traction as the preferred business models for many of our customers. Recent contract awards, which include the major lump-sum turnkey (LSTK) contracts in
"Therefore, we are excited about the outlook for Schlumberger. We are ready and primed to deliver superior growth, financial returns, and free cash flow in the coming years by building on the broadest technology offering and expertise in the industry, our unmatched scale and operational efficiency, strong capital discipline, and a clear desire to provide industry-leading cash returns to our shareholders."
Other Events
During the quarter, Schlumberger repurchased 1.4 million shares of its common stock at an average price of
On
On
Consolidated Revenue by Area
|
(Stated in millions) |
||||||||||||||||
Three Months Ended | Change | ||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sequential | Year-on-year | |||||||||||||
North America |
$2,835 |
$2,811 | $1,871 | 1% | 52% | ||||||||||||
Latin America | 870 | 1,034 | 952 | -16% | -9% | ||||||||||||
Europe/CIS/Africa | 1,704 | 1,808 | 1,652 | -6% | 3% | ||||||||||||
Middle East & Asia | 2,309 | 2,396 |
2,318 |
-4% | 0% | ||||||||||||
Other | 111 | 130 |
101 |
n/m | n/m | ||||||||||||
$7,829 | $8,179 | $6,894 | -4% | 14% | |||||||||||||
North America revenue | $2,835 | $2,811 | $1,871 | 1% | 52% | ||||||||||||
International revenue | $4,883 | $5,237 | $4,922 | -7% | -1% | ||||||||||||
n/m = not meaningful | |||||||||||||||||
First-quarter revenue of
International
Revenue in the
|
(Stated in millions) |
||||||||||||||||
Three Months Ended | Change | ||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sequential | Year-on-year | |||||||||||||
Revenue | $1,556 | $1,638 | $1,618 | -5% | -4% | ||||||||||||
Pretax operating income | $307 | $360 | $281 | -15% | 9% | ||||||||||||
Pretax operating margin | 19.7% | 22.0% | 17.3% | -224 bps | 240 bps | ||||||||||||
Group pretax operating margin of 20% was 224 bps lower sequentially due to seasonally lower high-margin Wireline activity in
Offshore
In
The
Petro-Hunt trialed the DrillPlan solution on its wells in the
In
Also in
Karachaganak Petroleum Operating BV—a consortium of ENI, Shell,
Drilling Group
|
(Stated in millions) |
||||||||||||||||
Three Months Ended | Change | ||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sequential | Year-on-year | |||||||||||||
Revenue | $2,126 | $2,180 | $1,985 | -2% | 7% | ||||||||||||
Pretax operating income | $293 | $319 | $229 | -8% | 28% | ||||||||||||
Pretax operating margin | 13.8% | 14.6% | 11.5% | -85 bps | 222 bps | ||||||||||||
Drilling Group revenue of
Group pretax operating margin of 14% declined 85 bps sequentially as continued pricing momentum from the increased uptake of Drilling & Measurements and Bits & Drilling Tools technologies in the US was more than offset by the pricing pressure and seasonally lower activity in the international markets.
Drilling Group performance in the first quarter was underpinned by integrated services contract awards, IDS operational efficiencies, and a broad range of drill bit technologies that helped lower cost per barrel.
In
Saudi Aramco has awarded Schlumberger a three-year LSTK drilling contract to provide rigs and well construction services for 70 onshore oil wells in different fields. The contract has an optional two-year extension period, with operations expected to begin in the second quarter of 2018.
In
In
In the Norwegian sector of the
In
ln
Offshore
|
(Stated in millions) |
||||||||||||||||
Three Months Ended | Change | ||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sequential | Year-on-year | |||||||||||||
Revenue | $2,959 | $3,079 | $2,187 | -4% | 35% | ||||||||||||
Pretax operating income | $216 | $315 | $110 | -31% | 96% | ||||||||||||
Pretax operating margin | 7.3% | 10.2% | 5.0% | -291 bps | 227 bps | ||||||||||||
Group pretax operating margin of 7% decreased 291 bps sequentially due to the previously mentioned transient headwinds that impacted the hydraulic fracturing market in
In
In
In
In the Russian sector of the
In the
In
In
|
(Stated in millions) |
||||||||||||||||
Three Months Ended | Change | ||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sequential | Year-on-year | |||||||||||||
Revenue | $1,310 | $1,414 | $1,229 | -7% | 7% | ||||||||||||
Pretax operating income | $166 | $203 | $162 | -18% | 2% | ||||||||||||
Pretax operating margin | 12.7% | 14.4% | 13.2% | -169 bps | -50 bps | ||||||||||||
Group pretax operating margin of 13% decreased 169 bps sequentially, largely due to the declining project backlog in OneSubsea.
In the US Gulf of
Financial Tables
Condensed Consolidated Statement of Income
(Stated in millions, except per share amounts) |
|||||||
Three Months | |||||||
Periods Ended March 31, | 2018 | 2017 | |||||
Revenue | $7,829 | $6,894 | |||||
Interest and other income | 42 | 46 | |||||
Expenses | |||||||
Cost of revenue | 6,802 | 6,076 | |||||
Research & engineering | 172 | 211 | |||||
General & administrative | 111 | 98 | |||||
Merger & integration (1) | - | 82 | |||||
Interest | 143 | 139 | |||||
Income before taxes | $643 | $334 | |||||
Tax on income (1) | 113 | 50 | |||||
Net income | $530 | $284 | |||||
Net income attributable to noncontrolling interests | 5 | 5 | |||||
Net income attributable to Schlumberger (1) | $525 | $279 | |||||
Diluted earnings per share of Schlumberger (1) | $0.38 | $0.20 | |||||
Average shares outstanding | 1,385 | 1,393 | |||||
Average shares outstanding assuming dilution | 1,394 | 1,402 | |||||
Depreciation & amortization included in expenses (2) | $874 | $989 | |||||
(1) | See section entitled "Charges & Credits" for details. | |
(2) | Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs and SPM investments. | |
Condensed Consolidated Balance Sheet
(Stated in millions) | |||||||||
Mar. 31, | Dec. 31, | ||||||||
Assets | 2018 | 2017 | |||||||
Current Assets | |||||||||
Cash and short-term investments | $4,165 | $5,089 | |||||||
Receivables | 8,472 | 8,084 | |||||||
Other current assets | 5,419 | 5,324 | |||||||
18,056 | 18,497 | ||||||||
Fixed assets | 11,556 | 11,576 | |||||||
Multiclient seismic data | 707 | 727 | |||||||
Goodwill | 25,120 | 25,118 | |||||||
Intangible assets | 9,217 | 9,354 | |||||||
Other assets | 6,822 | 6,715 | |||||||
$71,478 | $71,987 | ||||||||
Liabilities and Equity | |||||||||
Current Liabilities | |||||||||
Accounts payable and accrued liabilities | $9,598 | $10,036 | |||||||
Estimated liability for taxes on income | 1,311 | 1,223 | |||||||
Short-term borrowings and current portion | |||||||||
of long-term debt | 4,586 | 3,324 | |||||||
Dividends payable | 700 | 699 | |||||||
16,195 | 15,282 | ||||||||
Long-term debt | 13,526 | 14,875 | |||||||
Deferred taxes | 1,579 | 1,650 | |||||||
Postretirement benefits | 1,027 | 1,082 | |||||||
Other liabilities | 1,825 | 1,837 | |||||||
34,152 | 34,726 | ||||||||
Equity | 37,326 | 37,261 | |||||||
$71,478 | $71,987 | ||||||||
Liquidity
|
(Stated in millions) |
|||||||||||||||
Components of Liquidity |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
|||||||||||||
Cash and short-term investments | $4,165 | $5,089 | $7,353 | |||||||||||||
Fixed income investments, held to maturity | - | - | 238 | |||||||||||||
Short-term borrowings and current portion of long-term debt | (4,586 | ) | (3,324 | ) | (2,449 | ) | ||||||||||
Long-term debt | (13,526 | ) | (14,875 | ) | (16,538 | ) | ||||||||||
Net Debt (1) | $(13,947 | ) | $(13,110 | ) | $(11,396 | ) | ||||||||||
Details of changes in liquidity follow: | ||||||||||||||||
Three | Three | |||||||||||||||
Months | Months | |||||||||||||||
Periods Ended March 31, | 2018 | 2017 | ||||||||||||||
Net income before noncontrolling interests | $530 | $284 | ||||||||||||||
Impairment and other charges, net of tax before noncontrolling interests | - | 68 | ||||||||||||||
$530 | $352 | |||||||||||||||
Depreciation and amortization (2) | 874 | 989 | ||||||||||||||
Stock-based compensation expense | 90 | 88 | ||||||||||||||
Pension and other postretirement benefits expense | 18 | 37 | ||||||||||||||
Pension and other postretirement benefits funding | (39 | ) | (29 | ) | ||||||||||||
Change in working capital | (836 | ) | (791 | ) | ||||||||||||
Other | (69 | ) | 10 | |||||||||||||
Cash flow from operations (3) | $568 | $656 | ||||||||||||||
Capital expenditures | (454 | ) | (381 | ) | ||||||||||||
SPM investments | (240 | ) | (144 | ) | ||||||||||||
Multiclient seismic data capitalized | (26 | ) | (116 | ) | ||||||||||||
Free cash flow (4) | (152 | ) | 15 | |||||||||||||
Dividends paid | (692 | ) | (696 | ) | ||||||||||||
Stock repurchase program | (97 | ) | (372 | ) | ||||||||||||
Proceeds from employee stock plans | 127 | 135 | ||||||||||||||
(814 | ) | (918 | ) | |||||||||||||
Business acquisitions and investments, net of cash acquired plus debt assumed | (13 | ) | (273 | ) | ||||||||||||
Other | (10 | ) | (84 | ) | ||||||||||||
Increase in Net Debt | (837 | ) | (1,275 | ) | ||||||||||||
Net Debt, beginning of period | (13,110 | ) | (10,121 | ) | ||||||||||||
Net Debt, end of period | $(13,947 | ) | $(11,396 | ) | ||||||||||||
(1) | "Net Debt" represents gross debt less cash, short-term investments and fixed income investments, held to maturity. Management believes that Net Debt provides useful information regarding the level of Schlumberger's indebtedness by reflecting cash and investments that could be used to repay debt. Net Debt is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, total debt. | ||
(2) | Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs and SPM investments. | ||
(3) | Includes severance payments of $76 million and $140 million during the three months ended March 31, 2018 and 2017, respectively. | ||
(4) | "Free cash flow" represents cash flow from operations less capital expenditures, SPM investments and multiclient seismic data costs capitalized. Management believes that free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of Schlumberger's ability to generate cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. Free cash flow does not represent the residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as substitute for or superior to, cash flow from operations. | ||
Charges & Credits
In addition to financial results determined in accordance with US generally accepted accounting principles (GAAP), this first-quarter 2018 earnings release also includes non-GAAP financial measures (as defined under the SEC's Regulation G). Net income, excluding charges & credits, as well as measures derived from it (including diluted EPS, excluding charges & credits; Schlumberger net income, excluding charges & credits; and effective tax rate, excluding charges & credits) are non-GAAP financial measures. Management believes that the exclusion of charges & credits from these financial measures enables it to evaluate more effectively Schlumberger's operations period over period and to identify operating trends that could otherwise be masked by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of these non-GAAP measures to the comparable GAAP measures.
(Stated in millions, except per share amounts) | ||||||||||||||||||||||
First Quarter 2017 | ||||||||||||||||||||||
Pretax | Tax |
Noncont. Interests |
Net | Diluted
EPS |
||||||||||||||||||
Schlumberger net income (GAAP basis) | $334 | $50 | $5 | $279 | $0.20 | |||||||||||||||||
Merger & integration | 82 | 14 | - | 68 | 0.05 | |||||||||||||||||
Schlumberger net income, excluding charges & credits | $416 | $64 | $5 | $347 | $0.25 | |||||||||||||||||
Fourth Quarter 2017 | ||||||||||||||||||||||
Pretax | Tax |
Noncont. Interests |
Net | Diluted
EPS * |
||||||||||||||||||
Schlumberger net loss (GAAP basis) | $(2,210 | ) | $62 | ($17 | ) | $(2,255 | ) | $(1.63 | ) | |||||||||||||
Impairments & other : | ||||||||||||||||||||||
WesternGeco seismic restructuring | 1,114 | 20 | - | 1,094 | 0.79 | |||||||||||||||||
Venezuela investment write-down | 938 | - | - | 938 | 0.67 | |||||||||||||||||
Workforce reductions | 247 | 13 | - | 234 | 0.17 | |||||||||||||||||
Multiclient seismic data impairment | 246 | 81 | - | 165 | 0.12 | |||||||||||||||||
Other restructuring charges | 156 | 10 | 22 | 124 | 0.09 | |||||||||||||||||
Merger & integration | 95 | 26 | - | 69 | 0.05 | |||||||||||||||||
Provision for loss on long-term construction project | 245 | 22 | - | 223 | 0.16 | |||||||||||||||||
US tax reform | - | (76 | ) | - | 76 | 0.05 | ||||||||||||||||
Schlumberger net income, excluding charges & credits | $831 | $158 | $5 | $668 | $0.48 | |||||||||||||||||
* Does not add due to rounding |
||||||||||||||||||||||
There were no charges or credits during the first quarter of 2018. |
||||||||||||||||||||||
Product Groups
(Stated in millions) | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||||||||||||||||||||||||||
Revenue |
Income Before Taxes |
Revenue |
Income Before Taxes |
Revenue |
Income Before Taxes |
|||||||||||||||||||||||
Reservoir Characterization | $1,556 | $307 | $1,638 | $360 | $1,618 | $281 | ||||||||||||||||||||||
Drilling | 2,126 | 293 | 2,180 | 319 | 1,985 | 229 | ||||||||||||||||||||||
Production | 2,959 | 216 | 3,079 | 315 | 2,187 | 110 | ||||||||||||||||||||||
Cameron | 1,310 | 166 | 1,414 | 203 | 1,229 | 162 | ||||||||||||||||||||||
Eliminations & other | (122 | ) | (8 | ) | (132 | ) | (42 | ) | (125 | ) | (25 | ) | ||||||||||||||||
Pretax operating income | 974 | 1,155 | 757 | |||||||||||||||||||||||||
Corporate & other | (225 | ) | (219 | ) | (239 | ) | ||||||||||||||||||||||
Interest income(1) | 25 | 25 | 24 | |||||||||||||||||||||||||
Interest expense(1) | (131 | ) | (130 | ) | (126 | ) | ||||||||||||||||||||||
Charges & credits | - | (3,041 | ) | (82 | ) | |||||||||||||||||||||||
$7,829 | $643 | $8,179 | $(2,210 | ) | $6,894 | $334 | ||||||||||||||||||||||
(1) Excludes interest included in the Product Groups results. |
||||||||||||||||||||||||||||
Supplemental Information
1) |
What is the capex guidance for the full year 2018? |
||
Capex (excluding multiclient and SPM investments) for the full year 2018 is expected to be approximately $2 billion, which is similar to the levels of 2017 and 2016. | |||
2) |
What was the cash flow from operations for the first quarter of 2018? |
||
Cash flow from operations for the first quarter of 2018 was $568 million despite the consumption of working capital that is typically experienced in the first quarter. The use of working capital was driven by annual payments associated with employee compensation. Working capital also reflected $76 million of severance payments during the first quarter of 2018. | |||
3) |
What was included in "Interest and other income" for the first quarter of 2018? |
||
"Interest and other income" for the first quarter of 2018 was $42 million. This amount consisted of earnings of equity method investments of $14 million and interest income of $28 million. | |||
4) |
How did interest income and interest expense change during the first quarter of 2018? |
||
Interest income of $28 million declined $3 million sequentially. Interest expense of $143 million was essentially flat sequentially. | |||
5) |
What is the difference between pretax operating income and Schlumberger's consolidated income before taxes? |
||
The difference principally consists of corporate items, charges and credits, and interest income and interest expense not allocated to the segments as well as stock-based compensation expense, amortization expense associated with certain intangible assets, certain centrally managed initiatives, and other nonoperating items. | |||
6) |
What was the effective tax rate (ETR) for the first quarter of 2018? |
||
The ETR for the first quarter of 2018, calculated in accordance with GAAP, was 17.6% as compared to -2.8% for the fourth quarter of 2017. Excluding charges and credits, the ETR for the fourth quarter of 2017 was 19.0%. There were no charges and credits in the first quarter of 2018. | |||
7) |
What is the impact of US tax reform on Schlumberger? |
||
US tax reform significantly changes US corporate income tax laws by, among other things, reducing the US corporate income tax rate to 21% starting in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of US subsidiaries. | |||
After considering the impact of foreign tax credits and tax losses, the cash tax payable as a result of the one-time mandatory tax on previously deferred foreign earnings of Schlumberger's US subsidiary will not be significant. | |||
As a non-US company, Schlumberger's corporate structure results in it largely paying taxes where it operates and earns profits, without having to incur additional layers of taxes. Given this structure, the primary impact of US tax reform on Schlumberger is that a lower federal tax rate will be applied to income earned by the US business. Absent the impact of US tax reform, the Company's ETR would likely increase by approximately 2 to 3 percentage points in 2018 as compared to our fourth quarter 2017 ETR. However, the impact of US tax reform for 2018 is expected to largely offset this increase. As a result, Schlumberger expects the full-year 2018 ETR to approximate its Q4 2017 ETR before charges and credits. | |||
8) |
How many shares of common stock were outstanding as of March 31, 2018 and how did this change from the end of the previous quarter? |
||
There were 1.385 billion shares of common stock outstanding as of March 31, 2018. The following table shows the change in the number of shares outstanding from December 31, 2017 to March 31, 2018. |
|
(Stated in millions) |
||||
Shares outstanding at December 31, 2017 | 1,384 | ||||
Shares sold to optionees, less shares exchanged | - | ||||
Vesting of restricted stock | - | ||||
Shares issued under employee stock purchase plan | 2 | ||||
Stock repurchase program |
(1 |
) |
|||
Shares outstanding at March 31, 2018 | 1,385 | ||||
9) |
What was the weighted average number of shares outstanding during the first quarter of 2018 and fourth quarter of 2017 and how does this reconcile to the average number of shares outstanding, assuming dilution used in the calculation of diluted earnings per share, excluding charges and credits? |
||
The weighted average number of shares outstanding was 1.385 billion during the first quarter of 2018 and 1.385 billion during the fourth quarter of 2017. | |||
The following is a reconciliation of the weighted average shares outstanding to the average number of shares outstanding, assuming dilution, used in the calculation of diluted earnings per share, excluding charges and credits. |
|
(Stated in millions) |
|||||||||
First Quarter 2018 |
Fourth Quarter 2017 |
|||||||||
Weighted average shares outstanding | 1,385 | 1,385 | ||||||||
Assumed exercise of stock options | 2 | 1 | ||||||||
Unvested restricted stock | 7 | 5 | ||||||||
Average shares outstanding, assuming dilution | 1,394 | 1,391 | ||||||||
10) |
What are Schlumberger Production Management (SPM) projects and how does Schlumberger recognize revenue from these projects? |
||
SPM projects are focused on developing and comanaging production on behalf of Schlumberger customers under long-term agreements. Schlumberger will invest its own services, products, and in some cases, cash, into the field development activities and operations. Although in certain arrangements Schlumberger recognizes revenue and is paid for a portion of the services or products it provides, generally Schlumberger will not be paid at the time of providing its services or upon delivery of its products. Instead, Schlumberger recognizes revenue and is compensated based upon cash flow generated or on a fee-per-barrel basis. This may include certain arrangements whereby Schlumberger is only compensated based upon incremental production it helps deliver above a mutually agreed baseline. | |||
11) |
How are Schlumberger products and services that are invested in SPM projects accounted for? |
||
Revenue and the related costs are recorded within the respective Schlumberger Group for services and products that each Group provides to Schlumberger's SPM projects. This revenue (which is based on arms-length pricing) and the related profit is then eliminated through an intercompany adjustment that is included within the "Eliminations & other" line. (Note that the "Eliminations & other" line includes other items in addition to the SPM eliminations.) The direct cost associated with providing Schlumberger services or products to SPM projects is then capitalized on the balance sheet. | |||
These capitalized investments, which may be in the form of cash as well as the previously mentioned direct costs, are expensed in the income statement as the related production is achieved and associated revenue is recognized. This amortization expense is based on the units of production method, whereby each unit is assigned a pro-rata portion of the unamortized costs based on total estimated production. | |||
SPM revenue along with the amortization of the capitalized investments and other operating costs incurred in the period are reflected within the Production Group. | |||
12) |
What was the unamortized balance of Schlumberger's investment in SPM projects at March 31, 2018 and how did it change in terms of investment and amortization when compared to December 31, 2017? |
||
The unamortized balance of Schlumberger's investments in SPM projects was approximately $4.1 billion at both March 31, 2018 and December 31, 2017. These amounts are included within Other Assets in Schlumberger's Condensed Consolidated Balance Sheet. The change in the unamortized balance of Schlumberger's investment in SPM projects was as follows: |
|
(Stated in millions) |
||||
Balance at December 31, 2017 | $4,065 | ||||
SPM investments | 240 | ||||
Amortization of SPM investment |
(140 |
) |
|||
Translation & other |
(53 |
) |
|||
Balance at March 31, 2018 | $4,112 | ||||
13) |
What was the amount of WesternGeco multiclient sales in the first quarter of 2018? |
||
Multiclient sales, including transfer fees, were $119 million in the first quarter of 2018 and $166 million in the fourth quarter of 2017. | |||
14) |
What was the WesternGeco backlog at the end of the first quarter of 2018? |
||
The WesternGeco backlog, which is based on signed contracts with customers, was $358 million at the end of the first quarter of 2018. It was $399 million at the end of the fourth quarter of 2017. | |||
15) |
What were the orders and backlog for the Cameron Group's OneSubsea and Drilling Systems businesses? |
||
The OneSubsea and Drilling Systems orders and backlog were as follows: |
|
(Stated in millions) |
||||||||
Orders |
First Quarter 2018 |
Fourth Quarter 2017 |
|||||||
OneSubsea | $329 | $282 | |||||||
Drilling Systems | $218 |
|
$150 | ||||||
Backlog (at the end of period) | |||||||||
OneSubsea | $2,002 | $2,060 | |||||||
Drilling Systems | $377 |
|
$408 | ||||||
About Schlumberger
Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance.
*Mark of Schlumberger or Schlumberger companies.
Notes
Schlumberger will hold a conference call to discuss the earnings press release and business outlook on
The conference call will be webcast simultaneously at www.slb.com/irwebcast on a listen-only basis. A replay of the webcast will also be available at the same web site until
This first-quarter 2018 earnings release, as well as other statements we make, contain "forward-looking statements" within the meaning of the federal securities laws, which include any statements that are not historical facts, such as our forecasts or expectations regarding business outlook; growth for Schlumberger as a whole and for each of its segments (and for specified products or geographic areas within each segment); oil and natural gas demand and production growth; oil and natural gas prices; improvements in operating procedures and technology, including our transformation program; capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger's customers; the effects of U.S. tax reform; our effective tax rate; the success of Schlumberger's SPM projects, joint ventures and alliances; future global economic conditions; and future results of operations. These statements are subject to risks and uncertainties, including, but not limited to, global economic conditions; changes in exploration and production spending by Schlumberger's customers and changes in the level of oil and natural gas exploration and development; general economic, political and business conditions in key regions of the world; foreign currency risk; pricing pressure; weather and seasonal factors; operational modifications, delays or cancellations; production declines; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services and climate-related initiatives; the inability of technology to meet new challenges in exploration; the inability to retain key employees; and other risks and uncertainties detailed in this first-quarter 2018 earnings release and our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the
View source version on businesswire.com: https://www.businesswire.com/news/home/20180420005288/en/
Source:
Schlumberger Limited
Simon Farrant – Vice President of Investor Relations, Schlumberger Limited
Joy V. Domingo – Manager of Investor Relations, Schlumberger Limited
Office +1 (713) 375-3535
investor-relations@slb.com