SEC Filing

View:

Download DOC

Download PDF

Download XLS

Download XBRL

slb-10q_20220630.htm

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, 2022

☐	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, 2022

COMMON STOCK, $0.01 PAR VALUE PER SHARE

1,414,388,264

SCHLUMBERGER LIMITED

Second Quarter 2022 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	17

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

(Unaudited)

(Stated in millions, except per share amounts)

	Second Quarter				Six Months
	2022		2021		2022		2021
Revenue
Services	$	4,732	$	3,789	$	8,954	$	7,271
Product sales		2,041		1,845		3,781		3,586
Total Revenue		6,773		5,634		12,735		10,857
Interest & other income		311		16		361		35
Expenses
Cost of services		3,720		3,223		7,107		6,255
Cost of sales		1,848		1,545		3,474		3,019
Research & engineering		154		134		295		268
General & administrative		86		70		183		150
Interest		124		136		247		272
Income before taxes		1,152		542		1,790		928
Tax expense		182		99		300		173
Net income		970		443		1,490		755
Net income attributable to noncontrolling interests		11		12		21		25
Net income attributable to Schlumberger	$	959	$	431	$	1,469	$	730

Basic income per share of Schlumberger	$	0.68	$	0.31	$	1.04	$	0.52

Diluted income per share of Schlumberger	$	0.67	$	0.30	$	1.02	$	0.51

Average shares outstanding:
Basic		1,414		1,398		1,413		1,398
Assuming dilution		1,436		1,421		1,435		1,420

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

(Stated in millions)

	Second Quarter						Six Months
	2022			2021			2022			2021
Net income	$	970		$	443		$	1,490		$	755
Currency translation adjustments
Unrealized net change arising during the period		216			(38	)		110			(24	)
Cash flow hedges
Net gain (loss) on cash flow hedges		63			(128	)		72			22
Reclassification to net income of net realized gain		(114	)		(3	)		(97	)		(5	)
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss		14			70			30			133
Amortization to net income of net prior service credit		(6	)		(6	)		(11	)		(11	)
Income taxes on pension and other postretirement benefit plans		2			(3	)		2			(3	)
Other		-			(4	)		-			(4	)
Comprehensive income		1,145			331			1,596			863
Comprehensive income attributable to noncontrolling interests		11			12			21			25
Comprehensive income attributable to Schlumberger	$	1,134		$	319		$	1,575		$	838

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Stated in millions)

	Jun. 30,
	2022			Dec. 31,
	(Unaudited)			2021
ASSETS
Current Assets
Cash	$	1,893		$	1,757
Short-term investments		923			1,382
Receivables less allowance for doubtful accounts (2022 - $337; 2021 - $319)		6,247			5,315
Inventories		3,968			3,272
Other current assets		1,285			928
		14,316			12,654
Investments in Affiliated Companies		1,767			2,044
Fixed Assets less accumulated depreciation		6,386			6,429
Goodwill		13,009			12,990
Intangible Assets		3,102			3,211
Other Assets		4,247			4,183
	$	42,827		$	41,511
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	8,528		$	8,382
Estimated liability for taxes on income		884			879
Short-term borrowings and current portion of long-term debt		901			909
Dividends payable		270			189
		10,583			10,359
Long-term Debt		12,946			13,286
Postretirement Benefits		232			231
Deferred Taxes		99			94
Other Liabilities		2,342			2,255
		26,202			26,225
Equity
Common stock		11,981			12,608
Treasury stock		(1,436	)		(2,233	)
Retained earnings		9,244			8,199
Accumulated other comprehensive loss		(3,464	)		(3,570	)
Schlumberger stockholders’ equity		16,325			15,004
Noncontrolling interests		300			282
		16,625			15,286
	$	42,827		$	41,511

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(Stated in millions)

	Six Months Ended June 30,
	2022			2021
Cash flows from operating activities:
Net income	$	1,490		$	755
Adjustments to reconcile net income to cash provided by operating activities:
Gain on sale of Liberty shares		(242	)		-
Gain on sale of real estate		(43	)		-
Depreciation and amortization ⁽¹⁾		1,065			1,058
Deferred taxes		11			(18	)
Stock-based compensation expense		160			156
Earnings of equity method investments, less dividends received		(22	)		(15	)
Change in assets and liabilities: ⁽²⁾
Increase in receivables		(887	)		(114	)
(Increase) decrease in inventories		(652	)		86
(Increase) decrease in other current assets		(240	)		538
Increase in other assets		(26	)		(28	)
Decrease in accounts payable and accrued liabilities		(57	)		(700	)
Decrease in estimated liability for taxes on income		(48	)		(91	)
Increase in other liabilities		4			13
Other		26			9
NET CASH PROVIDED BY OPERATING ACTIVITIES		539			1,649
Cash flows from investing activities:
Capital expenditures		(664	)		(421	)
APS investments		(311	)		(188	)
Exploration data costs capitalized		(64	)		(12	)
Business acquisitions and investments, net of cash acquired		(8	)		(35	)
Proceeds from sale of Liberty shares		513			-
Proceeds from sale of real estate		120			-
Sale of short-term investments, net		457			921
Other		(76	)		(39	)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(33	)		226
Cash flows from financing activities:
Dividends paid		(352	)		(349	)
Taxes paid on net settled stock-based compensation awards		(85	)		(18	)
Proceeds from employee stock purchase plan		64			62
Proceeds from exercise of stock options		29			-
Proceeds from issuance of long-term debt		-			34
Repayment of long-term debt		-			(887	)
Net decrease in short-term borrowings		(11	)		(83	)
Other		(3	)		(41	)
NET CASH USED IN FINANCING ACTIVITIES		(358	)		(1,282	)
Net increase in cash before translation effect		148			593
Translation effect on cash		(12	)		2
Cash, beginning of period		1,757			844
Cash, end of period	$	1,893		$	1,439

⁽¹⁾	Includes depreciation of property, plant and equipment and amortization of intangible assets, exploration 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, 2022 – June 30, 2022	Issued			In Treasury			Earnings		Loss			Interests		Total
Balance, January 1, 2022	$	12,608		$	(2,233	)	$	8,199	$	(3,570	)	$	282	$	15,286
Net income								1,469					21		1,490
Currency translation adjustments										110					110
Changes in fair value of cash flow hedges										(25	)				(25	)
Pension and other postretirement benefit plans										21					21
Shares sold to optionees, less shares exchanged		(24	)		53										29
Vesting of restricted stock, net of taxes withheld		(658	)		573										(85	)
Shares issued under employee stock purchase plan		(104	)		168