UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 7.01 Regulation FD Disclosure.
On March 8, 2022, Olivier Le Peuch, Chief Executive Officer of Schlumberger Limited (“Schlumberger,” “we” or “our”), addressed the Evercore ISI Elite Energy & Minerals Summit via virtual webcast, where he provided, among other things, an update on the outlook for the quarter ending March 31, 2022. Mr. Le Peuch’s discussion included the following statement:
“We are generally pleased with how the first quarter is unfolding. Our Well Construction and Reservoir Performance Divisions are performing as expected and are on pace to deliver first quarter year-on-year revenue growth of about 20%, on the back of strong activity in North America and the international offshore markets. Year-on-year first-quarter revenue growth in the Digital & Integration Division is also in line with our expectations. In contrast, our Production Systems Division has gotten off to a much slower start to the year. Persistent global supply and logistics constraints are resulting in lower-than-expected product deliveries which will, unfortunately, have an impact on our earnings this quarter. The recent tragic geopolitical events will also have some impact on our results. However, the impact on the first quarter will largely be limited to the effects of the depreciation of the ruble. Despite these challenges, we expect our first-quarter year-on-year global revenue growth to be in the low-to-mid-teens and our first-quarter pretax segment operating margin to expand by approximately 150 to 200 basis points year-on-year. First quarter adjusted EBITDA margin is expected to increase approximately 50 to 100 basis points year-on-year.
“We also believe that recent events will exacerbate an already tightly supplied oil and gas market. This will likely require increased global investment across geographies to ensure the security of the world’s energy supply. Consequently, based on what we see today, and taking into account that Russia currently only represents approximately 5% of our global revenue, we continue to believe that increased activity and pricing will drive simultaneous double-digit growth—both internationally and in North America—that will lead our overall 2022 revenue growth to reach the mid-teens. Furthermore, our ambition remains to expand operating and adjusted EBITDA margins on a full-year basis, exiting the year with adjusted EBITDA margins at least 200 basis points higher than the fourth quarter of 2021.”
In accordance with General Instructions B.2. of Form 8-K, the information in this Item 7.01 will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor will it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
Cautionary Statement Regarding Forward-Looking Statements
This Form 8-K, as well as other statements we make, contains “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “forecast,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about Schlumberger’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for Schlumberger as a whole and for each of its Divisions (and for specified business lines, geographic areas or technologies within each Division); oil and natural gas demand and production growth; oil and natural gas prices; capital expenditures by Schlumberger and the oil and gas industry; access to raw materials; future global economic and geopolitical conditions; future liquidity;
and future results of operations, such as margin levels. These statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by Schlumberger’s customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of Schlumberger’s customers and suppliers; Schlumberger’s inability to achieve its financial and performance targets and other forecasts and expectations; Schlumberger’s inability to achieve net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical and business conditions in key regions of the world; foreign currency risk; pricing pressure; inflation; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in Schlumberger’s supply chain; production declines; Schlumberger’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in our most recent Forms 10-K, 10-Q, and 8-K and other filings that we make with the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Statements in this Form 8-K are made as of March 8, 2022, and Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SCHLUMBERGER LIMITED |
| /s/ Dianne B. Ralston |
| Dianne B. Ralston |
| Chief Legal Officer and Secretary |
| Date: March 8, 2022 |