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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file No.: 1-4601

SCHLUMBERGER N.V.

(SCHLUMBERGER LIMITED)

(Exact name of registrant as specified in its charter)

Curaçao		52-0684746
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

42 rue Saint-Dominique
Paris, France		75007

5599 San Felipe
Houston, Texas, United States of America		77056

62 Buckingham Gate
London, United Kingdom		SW1E 6AJ

Parkstraat 83, The Hague,
The Netherlands		2514 JG
(Addresses of principal executive offices)		(Zip Codes)

Registrant’s telephone number in the United States, including area code, is: (713) 513-2000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
common stock, par value $0.01 per share	SLB	New York Stock Exchange

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. Yes ☒ No ☐

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). Yes ☒ No ☐

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	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

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 ☐ No ☒

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, 2021

COMMON STOCK, $0.01 PAR VALUE PER SHARE

1,398,332,463

SCHLUMBERGER LIMITED

First Quarter 2021 Form 10-Q

Table of Contents

		Page
PART I	Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23

Item 4.	Controls and Procedures	23

PART II	Other Information

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3.	Defaults Upon Senior Securities	24

Item 4.	Mine Safety Disclosures	24

Item 5.	Other Information	24

Item 6.	Exhibits	25

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (LOSS)

(Unaudited)

(Stated in millions, except per share amounts)

	Three Months Ended March 31
	2021		2020
Revenue
Services	$	3,482	$	5,426
Product sales		1,741		2,029
Total Revenue		5,223		7,455
Interest & other income		19		39
Expenses
Cost of services		3,031		4,727
Cost of sales		1,473		1,897
Research & engineering		135		173
General & administrative		81		127
Impairments & other		-		8,523
Interest		136		136
Income (loss) before taxes		386		(8,089	)
Tax expense (benefit)		74		(721	)
Net income (loss)		312		(7,368	)
Net income attributable to noncontrolling interests		13		8
Net income (loss) attributable to Schlumberger	$	299	$	(7,376	)

Basic income (loss) per share of Schlumberger	$	0.21	$	(5.32	)

Diluted income (loss) per share of Schlumberger	$	0.21	$	(5.32	)

Average shares outstanding:
Basic		1,398		1,387
Assuming dilution		1,419		1,387

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Stated in millions)

	Three Months Ended March 31
	2021			2020
Net income (loss)	$	312		$	(7,368	)
Currency translation adjustments
Unrealized net change arising during the period		14			(125	)
Cash flow hedges
Net gain (loss) on cash flow hedges		150			(203	)
Reclassification to net income (loss) of net realized (gain) loss		(2	)		1
Pension and other postretirement benefit plans
Amortization to net income (loss) of net actuarial loss		63			51
Amortization to net income (loss) of net prior service credit		(5	)		(5	)
Income taxes on pension and other postretirement benefit plans		-			(4	)
Comprehensive income (loss)		532			(7,653	)
Comprehensive income attributable to noncontrolling interests		13			8
Comprehensive income (loss) attributable to Schlumberger	$	519		$	(7,661	)

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Stated in millions)

	Mar. 31,
	2021			Dec. 31,
	(Unaudited)			2020
ASSETS
Current Assets
Cash	$	1,268		$	844
Short-term investments		1,642			2,162
Receivables less allowance for doubtful accounts (2021 - $319; 2020 - $301)		5,269			5,247
Inventories		3,303			3,354
Other current assets		1,325			1,312
		12,807			12,919
Investments in Affiliated Companies		2,090			2,061
Fixed Assets less accumulated depreciation		6,620			6,826
Multiclient Seismic Data		298			317
Goodwill		12,978			12,980
Intangible Assets		3,397			3,455
Other Assets		3,846			3,876
	$	42,036		$	42,434
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	7,956		$	8,442
Estimated liability for taxes on income		983			1,015
Short-term borrowings and current portion of long-term debt		749			850
Dividends payable		185			184
		9,873			10,491
Long-term Debt		15,834			16,036
Postretirement Benefits		1,003			1,049
Other Liabilities		2,354			2,369
		29,064			29,945
Equity
Common stock		12,663			12,970
Treasury stock		(2,598	)		(3,033	)
Retained earnings		7,142			7,018
Accumulated other comprehensive loss		(4,664	)		(4,884	)
Schlumberger stockholders’ equity		12,543			12,071
Noncontrolling interests		429			418
		12,972			12,489
	$	42,036		$	42,434

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(Stated in millions)

	Three Months Ended March 31,
	2021			2020
Cash flows from operating activities:
Net income (loss)	$	312		$	(7,368	)
Adjustments to reconcile net loss to cash provided by operating activities:
Impairments and other charges		-			8,523
Depreciation and amortization ⁽¹⁾		532			792
Deferred taxes		(29	)		(781	)
Stock-based compensation expense		84			108
Earnings of equity method investments, less dividends received		(13	)		(10	)
Change in assets and liabilities: ⁽²⁾
(Increase) decrease in receivables		(16	)		233
Decrease (increase) in inventories		49			(42	)
(Increase) decrease in other current assets		(17	)		15
Decrease (increase) in other assets		11			(7	)
Decrease in accounts payable and accrued liabilities		(438	)		(640	)
Decrease in estimated liability for taxes on income		(33	)		(48	)
Decrease in other liabilities		(18	)		(37	)
Other		5			46
NET CASH PROVIDED BY OPERATING ACTIVITIES		429			784
Cash flows from investing activities:
Capital expenditures		(178	)		(407	)
APS investments		(85	)		(163	)
Multiclient seismic data costs capitalized		(7	)		(35	)
Business acquisitions and investments, net of cash acquired		(13	)		-
Sale (purchase) of investments, net		520			(941	)
Net proceeds from divestitures		-			298
Other		(26	)		(64	)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		211			(1,312	)
Cash flows from financing activities:
Dividends paid		(174	)		(692	)
Proceeds from employee stock purchase plan		62			85
Stock repurchase program		-			(26	)
Proceeds from issuance of long-term debt		134			1,475
Repayment of long-term debt		(98	)		(90	)
Net (decrease) increase in short-term borrowings		(101	)		34
Other		(35	)		(9	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(212	)		777
Net increase in cash before translation effect		428			249
Translation effect on cash		(4	)		(11	)
Cash, beginning of period		844			1,137
Cash, end of period	$	1,268		$	1,375

⁽¹⁾	Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs, and APS investments.

⁽²⁾	Net of the effect of business acquisitions and divestitures.

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2021 – March 31, 2021	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2021	$	12,970		$	(3,033	)	$	7,018		$	(4,884	)	$	418		$	12,489
Net income								299						13			312
Currency translation adjustments											14			(2	)		12
Changes in fair value of cash flow hedges											148						148
Pension and other postretirement benefit plans											58						58
Vesting of restricted stock		(171	)		171												-
Shares issued under employee stock purchase plan		(202	)		264												62
Stock-based compensation expense		84															84
Dividends declared ($0.125 per share)								(175	)								(175	)
Other		(18	)														(18	)
Balance, March 31, 2021	$	12,663		$	(2,598	)	$	7,142		$	(4,664	)	$	429		$	12,972

	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2020 – March 31, 2020	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2020	$	13,078		$	(3,631	)	$	18,751		$	(4,438	)	$	416		$	24,176
Net loss								(7,376	)					8			(7,368	)
Currency translation adjustments											(125	)		(3	)		(128	)
Changes in fair value of cash flow hedges											(202	)					(202	)
Pension and other postretirement benefit plans											42						42
Shares sold to optionees, less shares exchanged		(117	)		117												-
Vesting of restricted stock		(95	)		180												85
Stock repurchase program					(26	)											(26	)
Stock-based compensation expense		108															108
Dividends declared ($0.50 per share)								(694	)								(694	)
Other		(11	)											1			(10	)
Balance, March 31, 2020	$	12,963		$	(3,360	)	$	10,681		$	(4,723	)	$	422		$	15,983

SHARES OF COMMON STOCK

(Unaudited)

			(Stated in millions)

						Shares
	Issued		In Treasury			Outstanding
Balance, January 1, 2021		1,434		(42	)		1,392
Vesting of restricted stock		-		2			2
Shares issued under employee stock purchase plan		-		4			4