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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 June 30, 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 June 30, 2021

COMMON STOCK, $0.01 PAR VALUE PER SHARE

1,398,433,008

SCHLUMBERGER LIMITED

Second 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	20

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27

Item 4.	Controls and Procedures	27

PART II	Other Information

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

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)

	Second Quarter					Six Months
	2021		2020			2021		2020
Revenue
Services	$	3,789	$	3,721		$	7,271	$	9,147
Product sales		1,845		1,635			3,586		3,664
Total Revenue		5,634		5,356			10,857		12,811
Interest & other income		16		33			35		72
Expenses
Cost of services		3,223		3,383			6,255		8,109
Cost of sales		1,545		1,542			3,019		3,439
Research & engineering		134		142			268		315
General & administrative		70		81			150		208
Impairments & other		-		3,724			-		12,247
Interest		136		144			272		281
Income (loss) before taxes		542		(3,627	)		928		(11,716	)
Tax expense (benefit)		99		(199	)		173		(920	)
Net income (loss)		443		(3,428	)		755		(10,796	)
Net income attributable to noncontrolling interests		12		6			25		14
Net income (loss) attributable to Schlumberger	$	431	$	(3,434	)	$	730	$	(10,810	)

Basic income (loss) per share of Schlumberger	$	0.31	$	(2.47	)	$	0.52	$	(7.79	)

Diluted income (loss) per share of Schlumberger	$	0.30	$	(2.47	)	$	0.51	$	(7.79	)

Average shares outstanding:
Basic		1,398		1,388			1,398		1,388
Assuming dilution		1,421		1,388			1,420		1,388

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Stated in millions)

	Second Quarter						Six Months
	2021			2020			2021			2020
Net income (loss)	$	443		$	(3,428	)	$	755		$	(10,796	)
Currency translation adjustments
Unrealized net change arising during the period		(38	)		19			(24	)		(106	)
Cash flow hedges
Net gain (loss) on cash flow hedges		(128	)		(28	)		22			(231	)
Reclassification to net income (loss) of net realized (gain) loss		(3	)		4			(5	)		5
Pension and other postretirement benefit plans
Amortization to net income (loss) of net actuarial loss		70			50			133			101
Amortization to net income (loss) of net prior service credit		(6	)		(5	)		(11	)		(10	)
Impact of curtailment		-			(69	)		-			(69	)
Income taxes on pension and other postretirement benefit plans		(3	)		14			(3	)		10
Other		(4	)		-			(4	)		-
Comprehensive income (loss)		331			(3,443	)		863			(11,096	)
Comprehensive income attributable to noncontrolling interests		12			6			25			14
Comprehensive income (loss) attributable to Schlumberger	$	319		$	(3,449	)	$	838		$	(11,110	)

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Stated in millions)

	Jun. 30,
	2021			Dec. 31,
	(Unaudited)			2020
ASSETS
Current Assets
Cash	$	1,439		$	844
Short-term investments		1,243			2,162
Receivables less allowance for doubtful accounts (2021 - $314; 2020 - $301)		5,347			5,247
Inventories		3,267			3,354
Other current assets		781			1,312
		12,077			12,919
Investments in Affiliated Companies		2,035			2,061
Fixed Assets less accumulated depreciation		6,473			6,826
Goodwill		12,987			12,980
Intangible Assets		3,311			3,455
Other Assets		4,025			4,193
	$	40,908		$	42,434
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	7,635		$	8,442
Estimated liability for taxes on income		924			1,015
Short-term borrowings and current portion of long-term debt		36			850
Dividends payable		189			184
		8,784			10,491
Long-term Debt		15,687			16,036
Postretirement Benefits		956			1,049
Other Liabilities		2,422			2,369
		27,849			29,945
Equity
Common stock		12,730			12,970
Treasury stock		(2,591	)		(3,033	)
Retained earnings		7,399			7,018
Accumulated other comprehensive loss		(4,776	)		(4,884	)
Schlumberger stockholders’ equity		12,762			12,071
Noncontrolling interests		297			418
		13,059			12,489
	$	40,908		$	42,434

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(Stated in millions)

	Six Months Ended June 30,
	2021			2020
Cash flows from operating activities:
Net income (loss)	$	755		$	(10,796	)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Impairments and other charges		-			12,247
Depreciation and amortization ⁽¹⁾		1,058			1,396
Deferred taxes		(18	)		(1,050	)
Stock-based compensation expense		156			213
Earnings of equity method investments, less dividends received		(15	)		(26	)
Change in assets and liabilities: ⁽²⁾
(Increase) decrease in receivables		(114	)		1,910
Decrease (increase) in inventories		86			(74	)
Decrease in other current assets		538			129
(Increase) decrease in other assets		(28	)		16
Decrease in accounts payable and accrued liabilities		(700	)		(2,204	)
Decrease in estimated liability for taxes on income		(91	)		(184	)
Increase (decrease) in other liabilities		13			(42	)
Other		9			52
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,649			1,587
Cash flows from investing activities:
Capital expenditures		(421	)		(658	)
APS investments		(188	)		(224	)
Multiclient seismic data costs capitalized		(12	)		(61	)
Business acquisitions and investments, net of cash acquired		(35	)		(30	)
Net proceeds from divestitures		-			298
Sale (purchase) of investments, net		921			(1,099	)
Other		(39	)		(85	)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		226			(1,859	)
Cash flows from financing activities:
Dividends paid		(349	)		(1,386	)
Proceeds from employee stock purchase plan		62			85
Stock repurchase program		-			(26	)
Proceeds from issuance of long-term debt		34			4,985
Repayment of long-term debt		(887	)		(3,070	)
Net (decrease) increase in short-term borrowings		(83	)		73
Other		(59	)		(51	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(1,282	)		610
Net increase in cash before translation effect		593			338
Translation effect on cash		2			(13	)
Cash, beginning of period		844			1,137
Cash, end of period	$	1,439		$	1,462

⁽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 – June 30, 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							730					25			755
Currency translation adjustments									(24	)		(2	)		(26	)
Changes in fair value of cash flow hedges									17