Schlumberger Announces Second-Quarter 2019 Results
- Worldwide revenue of
$8.3 billion increased 5% sequentially - International revenue of
$5.5 billion increased 8% sequentially North America revenue of$2.8 billion increased 2% sequentially- Pretax segment operating income of
$968 million increased 7% sequentially - EPS was
$0.35 - Cash flow from operations and free cash flow were
$1.1 billion and$0.5 billion , respectively - Quarterly cash dividend of
$0.50 per share was approved
(Stated in millions, except per share amounts) | |||||||||||
Three Months Ended | Change | ||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Sequential | Year-on-year | |||||||
Revenue |
$8,269 |
$7,879 |
$8,303 |
5% |
|
0% |
|||||
Pretax segment operating income |
$968 |
$908 |
$1,094 |
7% |
|
-12% |
|||||
Pretax segment operating margin |
11.7% |
11.5% |
13.2% |
17 bps |
|
-148 bps |
|||||
Net income - GAAP basis |
$492 |
$421 |
$430 |
17% |
|
14% |
|||||
Net income, excluding charges & credits* |
$492 |
$421 |
$594 |
17% |
|
-17% |
|||||
Diluted EPS - GAAP basis |
$0.35 |
$0.30 |
$0.31 |
17% |
|
13% |
|||||
Diluted EPS, excluding charges & credits* |
$0.35 |
$0.30 |
$0.43 |
17% |
|
-19% |
|||||
|
|
|
|||||||||
North America revenue |
$2,801 |
$2,738 |
$3,139 |
2% |
|
-11% |
|||||
International revenue |
$5,463 |
$5,037 |
$5,065 |
8% |
|
8% |
|||||
|
|
|
|||||||||
North America revenue, excluding Cameron |
$2,243 |
$2,178 |
$2,546 |
3% |
|
-12% |
|||||
International revenue, excluding Cameron |
$4,761 |
$4,469 |
$4,387 |
7% |
|
9% |
|||||
*These are non-GAAP financial measures. See section titled "Charges & Credits" for details. |
Schlumberger Chairman and CEO
“During the first half of 2019, excluding Cameron, international revenue increased 8% year-over-year while
“During the second quarter, sequential international growth was led by the
“In North America land, despite the impact of the spring breakup in
“By business segment, sequential growth in the second quarter was led by a 7% increase in revenue in Reservoir Characterization followed by a 6% increase in Production on higher international activity that exceeded the strength of the seasonal rebounds following winter in the Northern Hemisphere. The higher international activity benefited Wireline, WesternGeco, Well Services, Completions, Schlumberger Production Management (SPM), and Artificial Lift Solutions. Cameron revenue increased 5% sequentially from higher OneSubsea® and Surface Systems activity, primarily in the international markets. Drilling revenue increased 1% sequentially as international growth was partially offset by weakness in activity in
“From a macro perspective, we expect oil market sentiments to remain balanced. The oil demand forecast for 2019 has been reduced slightly on trade war fears and current global geopolitical tensions, but we do not anticipate a change in the structural demand outlook for the mid-term. On the supply side, we continue to see US shale oil as the only near- to medium-term source of global production growth, albeit at a slowing growth rate, as E&P operators continue to transition from an emphasis on growth to a focus on cash and returns, with consequent restraining effects on investment levels. These effects, combined with the decision by
“The increasing international market investment and a reduction in
Other Events
Schlumberger announced today that its Board of Directors has appointed
During the quarter, Schlumberger repurchased 2.5 million shares of its common stock at an average price of
On
On
On
Consolidated Revenue by Area
(Stated in millions) | |||||||||
Three Months Ended | Change | ||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Sequential | Year-on-year | |||||
North America |
$2,801 |
$2,738 |
$3,139 |
2% |
|
-11% |
|||
Latin America |
1,115 |
992 |
919 |
12% |
|
21% |
|||
Europe/CIS/Africa |
1,896 |
1,707 |
1,784 |
11% |
|
6% |
|||
Middle East & Asia |
2,452 |
2,338 |
2,362 |
5% |
|
4% |
|||
Other |
5 |
104 |
99 |
n/m |
|
n/m |
|||
$8,269 |
$7,879 |
$8,303 |
5% |
|
0% |
||||
|
|
|
|||||||
North America revenue |
$2,801 |
$2,738 |
$3,139 |
2% |
|
-11% |
|||
International revenue |
$5,463 |
$5,037 |
$5,065 |
8% |
|
8% |
|||
|
|
|
|||||||
North America revenue, excluding Cameron |
$2,243 |
$2,178 |
$2,546 |
3% |
|
-12% |
|||
International revenue, excluding Cameron |
$4,761 |
$4,469 |
$4,387 |
7% |
|
9% |
|||
n/m = not meaningful |
Second-quarter revenue of
International
Consolidated revenue in the
Consolidated revenue in the
Reservoir Characterization
(Stated in millions) | ||||||||||
Three Months Ended | Change | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Sequential | Year-on-year | ||||||
Revenue |
$1,649 |
$1,543 |
$1,640 |
7% |
|
1% |
||||
Pretax operating income |
$326 |
$293 |
$350 |
11% |
|
-7% |
||||
Pretax operating margin |
19.8% |
19.0% |
21.3% |
81 bps |
|
-153 bps |
Reservoir Characterization revenue of
Reservoir Characterization pretax operating margin of 20% was 81 basis points (bps) higher sequentially due to the seasonal recovery in higher-margin Wireline activity and stronger WesternGeco multiclient seismic license sales.
Reservoir Characterization performance was supported by multiple software as a service (SaaS) contracts for the
In
In
Offshore
Apache
In
Drilling
(Stated in millions) | ||||||||||
Three Months Ended | Change | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Sequential | Year-on-year | ||||||
Revenue |
$2,421 |
$2,387 |
$2,234 |
1% |
|
8% |
||||
Pretax operating income |
$300 |
$307 |
$289 |
-2% |
|
4% |
||||
Pretax operating margin |
12.4% |
12.9% |
12.9% |
-45 bps |
|
-53 bps |
Drilling revenue of
Drilling pretax operating margin of 12% declined 45 bps sequentially as margin improvements for Drilling & Measurements and M-I SWACO in the
Drilling performance benefited from contract awards and the deployment of drilling systems and fluids technologies.
Lundin Norway AS awarded Schlumberger a four-year IDS contract valued at
QGC Shell Australia awarded Schlumberger a three-year contract for the provision of four drilling rigs for the
In the
In the
Production
(Stated in millions) | ||||||||||
Three Months Ended | Change | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Sequential | Year-on-year | ||||||
Revenue |
$3,077 |
$2,890 |
$3,253 |
6% |
-5% |
|||||
Pretax operating income |
$235 |
$217 |
$316 |
8% |
-26% |
|||||
Pretax operating margin |
7.6% |
7.5% |
9.7% |
13 bps |
-207 bps |
Production revenue of
Production pretax operating margin of 8% was essentially flat sequentially as the improvement in international margin from higher activity was offset by the effects of pricing pressure in
Production revenue was strengthened by increasing deployment of new fracturing technologies in
In
In
In
Offshore
Cameron
(Stated in millions) | ||||||||||
Three Months Ended | Change | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Sequential | Year-on-year | ||||||
Revenue |
$1,237 |
$1,174 |
$1,295 |
5% |
|
-4% |
||||
Pretax operating income |
$156 |
$137 |
$166 |
14% |
|
-6% |
||||
Pretax operating margin |
12.6% |
11.6% |
12.8% |
94 bps |
|
-26 bps |
Cameron revenue of
Cameron pretax operating margin of 13% increased by 94 bps sequentially as improved profitability in OneSubsea and Surface Systems was partially offset by reduced margin in Drilling Systems.
In the second quarter, Cameron won long-term product and service contracts for subsea equipment, valves, and actuators, as well as the provision of subsea compression and managed pressure drilling (MPD) systems.
A/S Norske Shell has selected a wet gas compression concept by OneSubsea as the preferred concept to increase gas recovery in the Ormen Lange Field in the Norwegian Sea. The plan is to install two subsea compression stations at 850 m of water depth 120 km from shore powered with grid electricity via the Nyhamna gas plant.
In
Valves & Measurement was awarded a four-year service contract by one of the largest production sharing agreement companies in
In Far East Asia, Valves & Measurement worked closely with a major oil and gas company to develop a long-range plan to minimize turnaround risks associated with planned and unplanned shutdowns of an LNG facility. Close collaboration with the customer helped optimize the selection and amount of critical spare equipment needed onsite. This included the provision of ORBIT* rising stem ball valves and LEDEEN* actuators in alignment with the customer’s commercial needs.
Financial Tables
Condensed Consolidated Statement of Income
(Stated in millions, except per share amounts) |
|||||||||
Second Quarter | Six Months | ||||||||
Periods Ended June 30, |
2019 |
|
2018 |
|
2019 |
|
2018 |
||
Revenue |
$8,269 |
$8,303 |
$16,149 |
$16,131 |
|||||
Interest and other income |
25 |
40 |
39 |
82 |
|||||
Expenses | |||||||||
Cost of revenue |
7,252 |
7,179 |
14,209 |
13,980 |
|||||
Research & engineering |
179 |
175 |
351 |
347 |
|||||
General & administrative |
114 |
114 |
225 |
225 |
|||||
Impairments & other (1) |
- |
184 |
- |
184 |
|||||
Interest |
156 |
144 |
302 |
287 |
|||||
Income before taxes |
$593 |
$547 |
$1,101 |
$1,190 |
|||||
Tax expense (1) |
99 |
106 |
178 |
219 |
|||||
Net income (1) |
$494 |
$441 |
$923 |
$971 |
|||||
Net income attributable to noncontrolling interests |
2 |
11 |
10 |
16 |
|||||
Net income attributable to Schlumberger (1) |
$492 |
$430 |
$913 |
$955 |
|||||
Diluted earnings per share of Schlumberger (1) |
$0.35 |
$0.31 |
$0.65 |
$0.69 |
|||||
Average shares outstanding |
1,384 |
1,384 |
1,385 |
1,385 |
|||||
Average shares outstanding assuming dilution |
1,395 |
1,392 |
1,396 |
1,393 |
|||||
Depreciation & amortization included in expenses (2) |
$938 |
$876 |
$1,841 |
$1,750 |
(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) | |||||
Jun. 30, |
Dec. 31, |
||||
Assets |
2019 |
2018 |
|||
Current Assets | |||||
Cash and short-term investments |
$2,348 |
$2,777 |
|||
Receivables |
8,471 |
7,881 |
|||
Other current assets |
5,514 |
5,073 |
|||
16,333 |
15,731 |
||||
Fixed assets |
11,359 |
11,679 |
|||
Multiclient seismic data |
577 |
601 |
|||
Goodwill |
24,950 |
24,931 |
|||
Intangible assets |
8,485 |
8,727 |
|||
Other assets |
8,887 |
8,838 |
|||
$70,591 |
$70,507 |
||||
Liabilities and Equity | |||||
Current Liabilities | |||||
Accounts payable and accrued liabilities |
$9,851 |
$10,223 |
|||
Estimated liability for taxes on income |
1,123 |
1,155 |
|||
Short-term borrowings and current portion | |||||
of long-term debt |
98 |
1,407 |
|||
Dividends payable |
701 |
701 |
|||
11,773 |
13,486 |
||||
Long-term debt |
16,978 |
14,644 |
|||
Deferred taxes |
1,330 |
1,441 |
|||
Postretirement benefits |
1,119 |
1,153 |
|||
Other liabilities |
3,118 |
3,197 |
|||
34,318 |
33,921 |
||||
Equity |
36,273 |
36,586 |
|||
$70,591 |
$70,507 |
Liquidity
(Stated in millions) |
|||||||||
Components of Liquidity |
Jun. 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Jun. 30, |
||
Cash and short-term investments |
$2,348 |
$2,155 |
$2,777 |
$3,049 |
|||||
Short-term borrowings and current portion of long-term debt |
(98) |
(99) |
(1,407) |
(3,736) |
|||||
Long-term debt |
(16,978) |
(16,449) |
(14,644) |
(13,865) |
|||||
Net Debt (1) |
$(14,728) |
$(14,393) |
$(13,274) |
$(14,552) |
|||||
Details of changes in liquidity follow: | |||||||||
Six |
|
Second |
|
Six |
|||||
Months |
|
Quarter |
|
Months |
|||||
Periods Ended June 30, |
2019 |
|
2019 |
|
2018 |
||||
Net income before noncontrolling interests |
$923 |
$494 |
$971 |
||||||
Impairment and other charges, net of tax before noncontrolling interests |
- |
- |
164 |
||||||
$923 |
$494 |
$1,135 |
|||||||
Depreciation and amortization (2) |
1,841 |
938 |
1,750 |
||||||
Stock-based compensation expense |
194 |
86 |
176 |
||||||
Change in working capital |
(1,460) |
(412) |
(1,338) |
||||||
Other |
(64) |
2 |
(168) |
||||||
Cash flow from operations (3) |
$1,434 |
$1,108 |
$1,555 |
||||||
Capital expenditures |
(817) |
(404) |
(974) |
||||||
SPM investments |
(332) |
(181) |
(434) |
||||||
Multiclient seismic data capitalized |
(109) |
(64) |
(47) |
||||||
Free cash flow (4) |
176 |
459 |
100 |
||||||
Dividends paid |
(1,385) |
(693) |
(1,385) |
||||||
Stock repurchase program |
(199) |
(101) |
(200) |
||||||
Proceeds from employee stock plans |
106 |
- |
133 |
||||||
Business acquisitions and investments, net of cash acquired plus debt assumed |
(17) |
(12) |
(47) |
||||||
Other |
(135) |
12 |
(43) |
||||||
Increase in Net Debt |
(1,454) |
(335) |
(1,442) |
||||||
Net Debt, beginning of period |
(13,274) |
(14,393) |
(13,110) |
||||||
Net Debt, end of period |
$(14,728) |
$(14,728) |
$(14,552) |
(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 $71 million and $23 million during the six months and second quarter ended June 30, 2019, respectively, and $160 million during the six months ended June 30, 2018. |
(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 second-quarter 2019 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) |
||||||||||
Second Quarter 2018 | ||||||||||
Pretax | Tax | Noncont. Interests |
Net | Diluted EPS |
||||||
Schlumberger net income (GAAP basis) |
$547 |
$106 |
$11 |
$430 |
$0.31 |
|||||
Workforce reductions |
184 |
20 |
- |
164 |
0.12 |
|||||
Schlumberger net income, excluding charges & credits |
$731 |
$126 |
$11 |
$594 |
$0.43 |
|||||
Six Months 2018 | ||||||||||
Pretax | Tax | Noncont. Interests |
Net | Diluted EPS * |
||||||
Schlumberger net income (GAAP basis) |
$1,190 |
$219 |
$16 |
$955 |
$0.69 |
|||||
Workforce reductions |
184 |
20 |
- |
164 |
0.12 |
|||||
Schlumberger net income, excluding charges & credits |
$1,374 |
$239 |
$16 |
$1,119 |
$0.80 |
|||||
* Does not add due to rounding. |
||||||||||
There were no charges or credits recorded during the first six months of 2019. |
Segments
(Stated in millions) | ||||||||||||
Three Months Ended | ||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | ||||||||||
Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
|||||||
Reservoir Characterization |
$1,649 |
$326 |
$1,543 |
$293 |
$1,640 |
$350 |
||||||
Drilling |
2,421 |
300 |
2,387 |
307 |
2,234 |
289 |
||||||
Production |
3,077 |
235 |
2,890 |
217 |
3,253 |
316 |
||||||
Cameron |
1,237 |
156 |
1,174 |
137 |
1,295 |
166 |
||||||
Eliminations & other |
(115) |
(49) |
(115) |
(46) |
(119) |
(27) |
||||||
Pretax segment operating income |
968 |
908 |
1,094 |
|||||||||
Corporate & other |
(238) |
(273) |
(239) |
|||||||||
Interest income(1) |
9 |
10 |
11 |
|||||||||
Interest expense(1) |
(146) |
(136) |
(135) |
|||||||||
Charges & credits |
- |
- |
(184) |
|||||||||
$8,269 |
$593 |
$7,879 |
$509 |
$8,303 |
$547 |
|||||||
(Stated in millions) | ||||||||||||
Six Months Ended | ||||||||||||
Jun. 30, 2019 | Jun. 30, 2018 | |||||||||||
Revenue | Income Before Taxes |
Revenue | Income Before Taxes |
|||||||||
Reservoir Characterization |
$3,192 |
$619 |
$3,199 |
$656 |
||||||||
Drilling |
4,808 |
608 |
4,360 |
582 |
||||||||
Production |
5,967 |
453 |
6,209 |
533 |
||||||||
Cameron |
2,412 |
292 |
2,605 |
332 |
||||||||
Eliminations & other |
(230) |
(96) |
(242) |
(35) |
||||||||
Pretax segment operating income |
1,876 |
2,068 |
||||||||||
Corporate & other |
(511) |
(464) |
||||||||||
Interest income(1) |
18 |
36 |
||||||||||
Interest expense(1) |
(282) |
(266) |
||||||||||
Charges & credits |
- |
(184) |
||||||||||
$16,149 |
$1,101 |
$16,131 |
$1,190 |
|||||||||
(1) Excludes interest included in the segment results. |
Supplemental Information
1) |
What is the capex guidance for the full year 2019? |
Capex (excluding multiclient and SPM investments) for the full year 2019 is expected to be approximately $1.5 to $1.7 billion, compared to $2.2 billion that was spent in 2018. |
|
|
|
2) |
What were the cash flow from operations and free cash flow for the second quarter of 2019? |
Cash flow from operations for the second quarter of 2019 was $1.1 billion. Free cash flow for the second quarter of 2019 was $0.5 billion. |
|
|
|
3) |
What was included in “Interest and other income” for the second quarter of 2019? |
“Interest and other income” for the second quarter of 2019 was $25 million. This amount consisted of earnings of equity method investments of $14 million and interest income of $11 million. |
|
|
|
4) |
How did interest income and interest expense change during the second quarter of 2019? |
Interest income of $11 million for the second quarter of 2019 was $1 million lower sequentially. Interest expense of $156 million increased $9 million 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 second quarter of 2019? |
The ETR for the second quarter of 2019 was 16.7% as compared to 15.5% for the first quarter of 2019. |
|
|
|
7) |
How many shares of common stock were outstanding as of June 30, 2019 and how did this change from the end of the previous quarter? |
There were 1.383 billion shares of common stock outstanding as of June 30, 2019. The following table shows the change in the number of shares outstanding from March 31, 2019 to June 30, 2019. |
(Stated in millions) |
||
Shares outstanding at March 31, 2019 |
1,385 |
|
Shares issued to optionees, less shares exchanged |
- |
|
Vesting of restricted stock |
- |
|
Stock repurchase program |
(2) |
|
Shares outstanding at June 30, 2019 |
1,383 |
8) |
What was the weighted average number of shares outstanding during the second quarter of 2019 and first quarter of 2019, and how does this reconcile to the average number of shares outstanding, assuming dilution used in the calculation of diluted earnings per share? |
The weighted average number of shares outstanding was 1.384 billion during the second quarter of 2019 and 1.385 billion during the first quarter of 2019. |
|
|
|
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. |
(Stated in millions) |
||||
Second Quarter 2019 |
First Quarter 2019 |
|||
Weighted average shares outstanding |
1,384 |
1,385 |
||
Assumed exercise of stock options |
- |
- |
||
Unvested restricted stock |
11 |
12 |
||
Average shares outstanding, assuming dilution |
1,395 |
1,397 |
||
9) |
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. |
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10) |
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 segment for services and products that each segment 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. |
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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. |
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SPM revenue along with the amortization of the capitalized investments and other operating costs incurred in the period are reflected within the Production segment. |
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11) |
What was the unamortized balance of Schlumberger’s investment in SPM projects at June 30, 2019 and how did it change in terms of investment and amortization when compared to March 31, 2019? |
The unamortized balance of Schlumberger’s investments in SPM projects was approximately $4.2 billion at both June 30, 2019 and at March 31, 2019. 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 March 31, 2019 |
$4,192 |
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SPM investments |
181 |
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Amortization of SPM investment |
(189) |
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Other |
22 |
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Balance at June 30, 2019 |
$4,206 |
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12) |
What was the amount of WesternGeco multiclient sales in the second quarter of 2019? |
Multiclient sales, including transfer fees, were $181 million in the second quarter of 2019 and $131 million in the first quarter of 2019. |
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13) |
What was the WesternGeco backlog at the end of the second quarter of 2019? |
The WesternGeco backlog, which is based on signed contracts with customers, was $312 million at the end of the second quarter of 2019. It was $228 million at the end of the first quarter of 2019. |
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14) |
What were the orders and backlog for Cameron’s OneSubsea and Drilling Systems businesses? |
The OneSubsea and Drilling Systems orders and backlog were as follows: |
(Stated in millions) |
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Orders | Second Quarter 2019 |
First Quarter 2019 |
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OneSubsea |
$428 |
$511 |
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Drilling Systems |
$196 |
$232 |
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Backlog (at the end of period) | ||||
OneSubsea |
$2,170 |
$2,096 |
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Drilling Systems |
$541 |
$530 |
About Schlumberger
Schlumberger is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. With product sales and services in more than 120 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
This second-quarter 2019 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; our effective tax rate; 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; and other risks and uncertainties detailed in this second-quarter 2019 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/20190719005164/en/
Source:
Simon Farrant – Vice President of Investor Relations, Schlumberger Limited
Joy V. Domingo – Director of Investor Relations, Schlumberger Limited
Office +1 (713) 375-3535
investor-relations@slb.com