SCHLUMBERGER LIMITED/NV [SLB] Filings

10-Q 1 slb-20240630.htm 10-Q 10-Q

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, 2024


☐	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, a 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, 2024

    COMMON STOCK, $0.01 PAR VALUE PER SHARE

    1,419,841,229

SCHLUMBERGER LIMITED

Second Quarter 2024 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	21

Item 4.	Controls and Procedures	21

PART II	Other Information

Item 1.	Legal Proceedings	22

Item 1A.	Risk Factors	22

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 3.	Defaults Upon Senior Securities	22

Item 4.	Mine Safety Disclosures	22

Item 5.	Other Information	22

Item 6.	Exhibits	23

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
	2024		2023		2024		2023
Revenue
Services	$	5,902	$	5,563	$	11,578	$	10,897
Product sales		3,237		2,536		6,268		4,938
Total Revenue		9,139		8,099		17,846		15,835
Interest & other income		85		82		169		174
Expenses
Cost of services		4,523		4,288		8,939		8,417
Cost of sales		2,739		2,214		5,331		4,370
Research & engineering		188		163		369		337
General & administrative		94		96		215		187
Restructuring		111		-		111		-
Merger & integration		16		-		27		-
Interest		132		127		245		244
Income before taxes		1,421		1,293		2,778		2,454
Tax expense		276		246		535		464
Net income		1,145		1,047		2,243		1,990
Net income attributable to noncontrolling interests		33		14		63		23
Net income attributable to SLB	$	1,112	$	1,033	$	2,180	$	1,967

Basic income per share of SLB	$	0.78	$	0.73	$	1.53	$	1.38

Diluted income per share of SLB	$	0.77	$	0.72	$	1.51	$	1.36
Average shares outstanding:
Basic		1,428		1,423		1,429		1,425
Assuming dilution		1,443		1,442		1,445		1,444

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)


(Stated in millions)

	Second Quarter						Six Months
	2024			2023			2024			2023
Net income	$	1,145		$	1,047		$	2,243		$	1,990
Currency translation adjustments
Unrealized net change arising during the period		30			(43	)		53			(77	)
Cash flow hedges
Net (loss) gain on cash flow hedges		(26	)		105			(43	)		72
Reclassification to net income of net realized gain		6			(9	)		5			(14	)
Pension and other postretirement benefit plans
Amortization to net income of net actuarial gain		(1	)		(2	)		(1	)		(4	)
Amortization to net income of net prior service credit		(5	)		(6	)		(11	)		(11	)
Income taxes on pension and other postretirement benefit plans		2			2			3			3
Other		(4	)		-			1			-
Comprehensive income		1,147			1,094			2,250			1,959
Comprehensive income attributable to noncontrolling interests		33			14			63			23
Comprehensive income attributable to SLB	$	1,114		$	1,080		$	2,187		$	1,936

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET


(Stated in millions)

	Jun. 30,
	2024			Dec. 31,
	(Unaudited)			2023
ASSETS
Current Assets
Cash	$	2,953		$	2,900
Short-term investments		1,050			1,089
Receivables less allowance for doubtful accounts (2024 - $318; 2023 - $337)		8,605			7,812
Inventories		4,504			4,387
Other current assets		1,405			1,530
		18,517			17,718
Investments in Affiliated Companies		1,678			1,624
Fixed Assets less accumulated depreciation		7,335			7,240
Goodwill		14,530			14,084
Intangible Assets		3,198			3,239
Other Assets		4,115			4,052
	$	49,373		$	47,957
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	10,099		$	10,904
Estimated liability for taxes on income		867			994
Short-term borrowings and current portion of long-term debt		1,033			1,123
Dividends payable		410			374
		12,409			13,395
Long-term Debt		12,156			10,842
Postretirement Benefits		175			175
Deferred Taxes		135			140
Other Liabilities		2,218			2,046
		27,093			26,598
Equity
Common stock		11,401			11,624
Treasury stock		(973	)		(678	)
Retained earnings		14,890			13,497
Accumulated other comprehensive loss		(4,247	)		(4,254	)
SLB stockholders’ equity		21,071			20,189
Noncontrolling interests		1,209			1,170
		22,280			21,359
	$	49,373		$	47,957

See Notes to Consolidated Financial Statements

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)


(Stated in millions)

	Six Months Ended June 30,
	2024			2023
Cash flows from operating activities:
Net income	$	2,243		$	1,990
Adjustments to reconcile net income to net cash provided by operating activities:
Charges and credits		167			(36	)
Depreciation and amortization (1)		1,231			1,124
Deferred taxes		(29	)		118
Stock-based compensation expense		173			160
Earnings of equity method investments, less dividends received		12			(79	)
Change in assets and liabilities: (2)
Increase in receivables		(755	)		(614	)
Increase in inventories		(149	)		(368	)
Decrease in other current assets		107			157
Increase in other assets		(5	)		(18	)
Decrease in accounts payable and accrued liabilities		(1,080	)		(270	)
Decrease in estimated liability for taxes on income		(167	)		(191	)
Increase (decrease) in other liabilities		19			(63	)
Other		(4	)		28
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,763			1,938
Cash flows from investing activities:
Capital expenditures		(862	)		(881	)
APS investments		(256	)		(253	)
Exploration data costs capitalized		(91	)		(83	)
Business acquisitions and investments, net of cash acquired		(505	)		(262	)
Proceeds from sale of Liberty shares		-			137
Sale (purchase) of short-term investments, net		47			(24	)
Other		23			(164	)
NET CASH USED IN INVESTING ACTIVITIES		(1,644	)		(1,530	)
Cash flows from financing activities:
Dividends paid		(751	)		(605	)
Proceeds from employee stock purchase plan		100			86
Proceeds from exercise of stock options		20			38
Taxes paid on net settled stock-based compensation awards		(78	)		(144	)
Stock repurchase program		(735	)		(443	)
Proceeds from issuance of long-term debt		1,849			992
Repayment of long-term debt		(426	)		-
Net decrease in short-term borrowings		(19	)		(48	)
Other		(6	)		3
NET CASH USED IN FINANCING ACTIVITIES		(46	)		(121	)
Net increase in cash before translation effect		73			287
Translation effect on cash		(20	)		(12	)
Cash, beginning of period		2,900			1,655
Cash, end of period	$	2,953		$	1,930

(1)

Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and Asset Performance Solutions ("APS") investments.

(2)

Net of the effect of business acquisitions.

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, 2024 – June 30, 2024	Issued	In Treasury	Earnings	Loss	Interests	Total
Balance, January 1, 2024	$11,624	$(678)	$13,497	$(4,254)	$1,170	$21,359
Net income			2,180		63	2,243
Currency translation adjustments				53		53
Changes in fair value of cash flow hedges				(38)		(38)
Pension and other postretirement benefit plans				(9)		(9)
Shares sold to optionees, less shares exchanged	(9)	29				20
Vesting of restricted stock, net of taxes withheld	(351)	273				(78)
Employee stock purchase plan	(36)	136				100
Stock repurchase program		(735)				(735)
Stock-based compensation expense	173					173
Dividends declared ($0.55 per share)			(787)			(787)
Other		2		1	(24)	(21)
Balance, June 30, 2024	$11,401	$(973)	$14,890	$(4,247)	$1,209	$22,280



				Accumulated
				Other
	Common Stock		Retained	Comprehensive	Noncontrolling
January 1, 2023 – June 30, 2023	Issued	In Treasury	Earnings	Loss	Interests	Total
Balance, January 1, 2023	$11,837	$(1,016)	$10,719	$(3,855)	$304	$17,989
Net income			1,967		23	1,990
Currency translation adjustments				(77)		(77)
Changes in fair value of cash flow hedges				58		58
Pension and other postretirement benefit plans				(12)		(12)
Shares sold to optionees, less shares exchanged	(31)	69				38
Vesting of restricted stock, net of taxes withheld	(573)	429				(144)
Employee stock purchase plan	(123)	209				86
Stock repurchase program		(443)				(443)
Stock-based compensation expense	160					160
Dividends declared ($0.50 per share)			(712)			(712)
Dividends paid to noncontrolling interest					(2)	(2)
Other		2			1	3
Balance, June 30, 2023	$11,270	$(750)	$11,974	$(3,886)	$326	$18,934



										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2024 – June 30, 2024	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, April 1, 2024	$	11,344		$	(531	)	$	14,172		$	(4,249	)	$	1,187		$	21,923
Net income								1,112						33			1,145
Currency translation adjustments											30						30
Changes in fair value of cash flow hedges											(20	)					(20	)
Pension and other postretirement benefit plans											(4	)					(4	)
Shares sold to optionees, less shares exchanged		(3	)		8												5
Vesting of restricted stock, net of taxes withheld		(13	)		13												-
Stock repurchase program					(465	)											(465	)
Stock-based compensation expense		73															73
Dividends declared ($0.275 per share)								(394	)					(11	)		(405	)
Other					2						(4	)					(2	)
Balance, June 30, 2024	$	11,401		$	(973	)	$	14,890		$	(4,247	)

SCHLUMBERGER LIMITED/NV [SLB] Filings
10-Q	[2024-07-24]
10-Q	[2024-04-24]
10-K	[2024-01-24]
10-Q	[2023-10-25]
10-Q	[2023-07-26]
10-Q	[2023-04-26]
10-K	[2023-01-25]
10-Q	[2022-10-26]
10-Q	[2022-07-27]
10-Q	[2022-04-27]
10-K	[2022-01-26]
10-Q	[2021-10-27]
10-Q	[2021-07-28]
10-Q	[2021-04-28]
10-K	[2021-01-27]
10-Q	[2020-10-21]
10-Q	[2020-07-29]
10-Q	[2020-04-22]
10-K	[2020-01-22]
10-Q	[2019-10-23]
10-Q	[2019-07-24]
10-Q	[2019-04-24]
10-K	[2019-01-23]
10-Q	[2018-10-24]
10-Q	[2018-07-25]
10-Q	[2018-04-25]
10-K	[2018-01-24]
10-Q	[2017-10-25]
10-Q	[2017-07-26]
10-Q	[2017-04-26]
10-K	[2017-01-25]
10-Q	[2016-10-26]
10-Q	[2016-07-27]
10-Q	[2016-04-27]
10-K	[2016-01-27]
10-Q	[2015-10-21]
10-Q	[2015-07-22]
10-Q	[2015-04-22]
10-K	[2015-01-29]
10-Q	[2014-10-22]
10-Q	[2014-07-23]
10-Q	[2014-04-23]
10-K	[2014-01-31]
10-Q	[2013-10-23]
10-Q	[2013-07-24]
10-Q	[2013-04-24]
10-K	[2013-01-31]
10-Q	[2012-10-24]
10-Q	[2012-07-25]
10-Q	[2012-04-25]
10-K	[2012-02-01]