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slb-10q_20220930.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 September 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 September 30, 2022

COMMON STOCK, $0.01 PAR VALUE PER SHARE

1,417,993,775

SCHLUMBERGER LIMITED

Third 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	16

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22

Item 4.	Controls and Procedures	22

PART II	Other Information

Item 1.	Legal Proceedings	23

Item 1A.	Risk Factors	23

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23

Item 3.	Defaults Upon Senior Securities	23

Item 4.	Mine Safety Disclosures	23

Item 5.	Other Information	23

Item 6.	Exhibits	24

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

(Stated in millions, except per share amounts)

	Third Quarter				Nine Months
	2022		2021		2022		2021
Revenue
Services	$	5,153	$	4,020	$	14,109	$	11,291
Product sales		2,324		1,827		6,104		5,413
Total Revenue		7,477		5,847		20,213		16,704
Interest & other income		75		56		436		91
Expenses
Cost of services		3,975		3,334		11,082		9,588
Cost of sales		2,067		1,528		5,541		4,547
Research & engineering		160		140		456		409
General & administrative		94		80		277		231
Interest		122		130		369		402
Income before taxes		1,134		691		2,924		1,618
Tax expense		215		129		514		301
Net income		919		562		2,410		1,317
Net income attributable to noncontrolling interests		12		12		33		37
Net income attributable to Schlumberger	$	907	$	550	$	2,377	$	1,280

Basic income per share of Schlumberger	$	0.64	$	0.39	$	1.68	$	0.92

Diluted income per share of Schlumberger	$	0.63	$	0.39	$	1.65	$	0.90

Average shares outstanding:
Basic		1,418		1,402		1,414		1,399
Assuming dilution		1,439		1,424		1,436		1,422

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

(Stated in millions)

	Third Quarter						Nine Months
	2022			2021			2022			2021
Net income	$	919		$	562		$	2,410		$	1,317
Currency translation adjustments
Unrealized net change arising during the period		(18	)		30			92			6
Cash flow hedges
Net gain (loss) on cash flow hedges		45			(9	)		(53	)		13
Reclassification to net income of net realized (gain) loss		30			(2	)		103			(7	)
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss		16			69			46			202
Amortization to net income of net prior service credit		(6	)		(6	)		(17	)		(17	)
Income taxes on pension and other postretirement benefit plans		1			(3	)		3			(6	)
Other		-			-			-			(4	)
Comprehensive income		987			641			2,584			1,504
Comprehensive income attributable to noncontrolling interests		12			12			33			37
Comprehensive income attributable to Schlumberger	$	975		$	629		$	2,551		$	1,467

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Stated in millions)

	Sept. 30,
	2022			Dec. 31,
	(Unaudited)			2021
ASSETS
Current Assets
Cash	$	2,180		$	1,757
Short-term investments		1,429			1,382
Receivables less allowance for doubtful accounts (2022 - $335; 2021 - $320)		6,650			5,315
Inventories		4,143			3,272
Other current assets		1,209			928
		15,611			12,654
Investments in Affiliated Companies		1,762			2,044
Fixed Assets less accumulated depreciation		6,407			6,429
Goodwill		12,990			12,990
Intangible Assets		3,043			3,211
Other Assets		4,280			4,183
	$	44,093		$	41,511
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	9,034		$	8,382
Estimated liability for taxes on income		938			879
Short-term borrowings and current portion of long-term debt		899			909
Dividends payable		263			189
		11,134			10,359
Long-term Debt		12,452			13,286
Postretirement Benefits		233			231
Deferred Taxes		86			94
Other Liabilities		2,677			2,255
		26,582			26,225
Equity
Common stock		11,867			12,608
Treasury stock		(1,176	)		(2,233	)
Retained earnings		9,904			8,199
Accumulated other comprehensive loss		(3,396	)		(3,570	)
Schlumberger stockholders’ equity		17,199			15,004
Noncontrolling interests		312			282
		17,511			15,286
	$	44,093		$	41,511

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(Stated in millions)

	Nine Months Ended September 30,
	2022			2021
Cash flows from operating activities:
Net income	$	2,410		$	1,317
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	)		-
Gain on marketable securities		-			(47	)
Depreciation and amortization ⁽¹⁾		1,598			1,588
Deferred taxes		3			(33	)
Stock-based compensation expense		236			229
Earnings of equity method investments, less dividends received		(52	)		6
Change in assets and liabilities: ⁽²⁾
Increase in receivables		(1,302	)		(97	)
(Increase) decrease in inventories		(849	)		54
(Increase) decrease in other current assets		(144	)		506
Increase in other assets		(40	)		(9	)
Increase (decrease) in accounts payable and accrued liabilities		475			(660	)
Increase (decrease) in estimated liability for taxes on income		6			(124	)
Other		50			(11	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		2,106			2,719
Cash flows from investing activities:
Capital expenditures		(1,046	)		(694	)
APS investments		(420	)		(305	)
Exploration data costs capitalized		(77	)		(21	)
Business acquisitions and investments, net of cash acquired		(45	)		(134	)
Proceeds from sale of Liberty shares		513			-
Proceeds from sale of real estate		120			-
(Purchase) sale of short-term investments, net		(55	)		790
Other		(106	)		(29	)
NET CASH USED IN INVESTING ACTIVITIES		(1,116	)		(393	)
Cash flows from financing activities:
Dividends paid		(600	)		(524	)
Proceeds from employee stock purchase plan		142			137
Proceeds from exercise of stock options		29			-
Proceeds from issuance of long-term debt		-			34
Repayment of long-term debt		-			(1,076	)
Net decrease in short-term borrowings		(13	)		(94	)
Taxes paid on net settled stock-based compensation awards		(92	)		(21	)
Other		(4	)		(60	)
NET CASH USED IN FINANCING ACTIVITIES		(538	)		(1,604	)
Net increase in cash before translation effect		452			722
Translation effect on cash		(29	)		3
Cash, beginning of period		1,757			844
Cash, end of period	$	2,180		$	1,569

⁽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 – September 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								2,377					33			2,410
Currency translation adjustments										92						92
Changes in fair value of cash flow hedges										50						50
Pension and other postretirement benefit plans										32						32
Shares sold to optionees, less shares exchanged		(24	)		53											29
Vesting of restricted stock, net of taxes withheld		(730	)		638											(92	)
Employee stock purchase plan		(222	)		364											142
Stock-based compensation expense		236												<