UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended:
Commission file No.:
SCHLUMBERGER N.V.
(SCHLUMBERGER LIMITED)
(Exact name of registrant as specified in its charter)
Curaçao |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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42 RUE SAINT-DOMINIQUE |
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PARIS, FRANCE |
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75007 |
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62 BUCKINGHAM GATE |
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LONDON, UNITED KINGDOM |
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SW1E 6AJ |
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PARKSTRAAT 83 THE HAGUE, |
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THE NETHERLANDS |
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2514 JG |
(Addresses of principal executive offices) |
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(Zip Codes) |
Registrant’s telephone number in the United States, including area code, is: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class |
Outstanding at March 31, 2020 |
COMMON STOCK, $0.01 PAR VALUE PER SHARE |
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SCHLUMBERGER LIMITED
First Quarter 2020 Form 10-Q
Table of Contents
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Page |
PART I |
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Financial Information |
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Item 1. |
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3 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
17 |
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Item 3. |
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24 |
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Item 4. |
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24 |
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PART II |
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Other Information |
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Item 1. |
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25 |
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Item 1A. |
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25 |
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Item 2. |
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25 |
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Item 3. |
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25 |
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Item 4. |
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25 |
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Item 5. |
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25 |
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Item 6. |
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26 |
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(Unaudited)
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(Stated in millions, except per share amounts) |
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Three Months Ended March 31, |
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2020 |
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2019 |
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Revenue |
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Services |
$ |
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$ |
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Product sales |
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Total Revenue |
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Interest & other income |
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Expenses |
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Cost of services |
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Cost of sales |
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Research & engineering |
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General & administrative |
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Impairments & other |
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- |
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Interest |
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Income (loss) before taxes |
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( |
) |
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Tax expense (benefit) |
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( |
) |
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Net income (loss) |
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( |
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Net income attributable to noncontrolling interests |
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Net income (loss) attributable to Schlumberger |
$ |
( |
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$ |
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Basic earnings (loss) per share of Schlumberger |
$ |
( |
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$ |
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Diluted earnings (loss) per share of Schlumberger |
$ |
( |
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$ |
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Average shares outstanding: |
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Basic |
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Assuming dilution |
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See Notes to Consolidated Financial Statements
3
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Stated in millions) |
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Three Months Ended March 31, |
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2020 |
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2019 |
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Net income (loss) |
$ |
( |
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$ |
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Currency translation adjustments |
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Unrealized net change arising during the period |
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( |
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Cash flow hedges |
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Net loss on cash flow hedges |
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( |
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Reclassification to net income (loss) of net realized loss |
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Pension and other postretirement benefit plans |
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Amortization to net income (loss) of net actuarial loss |
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Amortization to net income (loss) of net prior service credit |
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( |
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( |
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Income taxes on pension and other postretirement benefit plans |
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( |
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- |
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Comprehensive income (loss) |
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( |
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Comprehensive income attributable to noncontrolling interests |
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Comprehensive income (loss) attributable to Schlumberger |
$ |
( |
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$ |
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See Notes to Consolidated Financial Statements
4
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Stated in millions) |
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Mar. 31, |
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2020 |
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Dec. 31, |
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(Unaudited) |
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2019 |
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ASSETS |
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Current Assets |
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Cash |
$ |
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$ |
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Short-term investments |
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Receivables less allowance for doubtful accounts (2020 - $ |
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Inventories |
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Other current assets |
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Investments in Affiliated Companies |
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Fixed Assets less accumulated depreciation |
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Multiclient Seismic Data |
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Goodwill |
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Intangible Assets |
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Deferred Taxes |
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- |
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Other Assets |
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$ |
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$ |
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LIABILITIES AND EQUITY |
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Current Liabilities |
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Accounts payable and accrued liabilities |
$ |
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$ |
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Estimated liability for taxes on income |
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Short-term borrowings and current portion of long-term debt |
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Dividends payable |
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Long-term Debt |
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Postretirement Benefits |
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Deferred Taxes |
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- |
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Other Liabilities |
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Equity |
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Common stock |
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Treasury stock |
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( |
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( |
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Retained earnings |
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Accumulated other comprehensive loss |
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( |
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( |
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Schlumberger stockholders' equity |
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Noncontrolling interests |
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$ |
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$ |
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See Notes to Consolidated Financial Statements
5
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Stated in millions) |
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Three Months Ended March 31, |
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2020 |
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2019 |
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Cash flows from operating activities: |
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Net income (loss) |
$ |
( |
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$ |
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Adjustments to reconcile net income (loss) income to cash provided by operating activities: |
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Impairments and other charges |
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- |
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Depreciation and amortization (1) |
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Deferred taxes |
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( |
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( |
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Stock-based compensation expense |
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Earnings of equity method investments, less dividends received |
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( |
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Change in assets and liabilities: (2) |
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Decrease (increase) in receivables |
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( |
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Increase in inventories |
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( |
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( |
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Decrease (increase) in other current assets |
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( |
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(Increase) decrease in other assets |
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( |
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Decrease in accounts payable and accrued liabilities |
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( |
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( |
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(Decrease) increase in estimated liability for taxes on income |
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( |
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Decrease in other liabilities |
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( |
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( |
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Other |
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NET CASH PROVIDED BY OPERATING ACTIVITIES |
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Cash flows from investing activities: |
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Capital expenditures |
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( |
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( |
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APS investments |
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( |
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( |
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Multiclient seismic data costs capitalized |
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( |
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( |
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(Purchase) sale of investments, net |
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( |
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Net proceeds from asset divestitures |
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- |
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Other |
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( |
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( |
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NET CASH USED IN INVESTING ACTIVITIES |
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( |
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( |
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Cash flows from financing activities: |
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Dividends paid |
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( |
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( |
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Proceeds from employee stock purchase plan |
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Proceeds from exercise of stock options |
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- |
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Stock repurchase program |
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( |
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( |
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Proceeds from issuance of long-term debt |
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Repayment of long-term debt |
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( |
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( |
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Net increase (decrease) in short-term borrowings |
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( |
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Other |
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( |
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( |
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NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES |
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( |
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Net increase (decrease) in cash before translation effect |
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( |
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Translation effect on cash |
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( |
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( |
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Cash, beginning of period |
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Cash, end of period |
$ |
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$ |
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(1) |
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(2) |
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See Notes to Consolidated Financial Statements
6
SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited)
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(Stated in millions, except per share amounts) |
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Accumulated |
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Other |
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Common Stock |
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Retained |
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Comprehensive |
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Noncontrolling |
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January 1, 2020 – March 31, 2020 |
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Issued |
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In Treasury |
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Earnings |
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Loss |
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Interests |
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Total |
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Balance, January 1, 2020 |
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$ |
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$ |
( |
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$ |
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$ |
( |
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$ |
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$ |
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Net loss |
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( |
) |
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( |
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Currency translation adjustments |
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( |
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( |
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( |
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Changes in fair value of cash flow hedges |
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( |
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( |
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Pension and other postretirement benefit plans |
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Vesting of restricted stock |
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( |
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- |
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Shares issued under employee stock purchase plan |
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( |
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Stock repurchase program |
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( |
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( |
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Stock-based compensation expense |
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Dividends declared ($ |
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( |
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( |
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Other |
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( |
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( |
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Balance, March 31, 2020 |
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$ |
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$ |
( |
) |
|
$ |
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$ |
( |
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$ |
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$ |
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(Stated in millions, except per share amounts) |
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Accumulated |
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Other |
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Common Stock |
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Retained |
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Comprehensive |
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Noncontrolling |
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January 1, 2019 –March 31, 2019 |
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Issued |
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In Treasury |
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Earnings |
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Loss |
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Interests |
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Total |
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||||||
Balance, January 1, 2019 |
|
$ |
|
|
|
$ |
( |
) |
|
$ |
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|
$ |
( |
) |
|
$ |
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$ |
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Net income |
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Currency translation adjustments |
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Changes in fair value of cash flow hedges |
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( |
) |
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( |
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Pension and other postretirement benefit plans |
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Shares sold to optionees, less shares exchanged |
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( |
) |
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Vesting of restricted stock |
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( |
) |
|
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|
|
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|
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|
|
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|
- |
|
Shares issued under employee stock purchase plan |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
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|
|
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Stock repurchase program |
|
|
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|
|
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( |
) |
|
|
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|
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( |
) |
Stock-based compensation expense |
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Dividends declared ($ |
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( |
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( |
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Other |
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( |